The reality is that even literally a day ago it was possible to sell Bitcoin for a thousand dollars more than it is now. A lot of various expert reasonings and estimates of forecasts have spilled out lately. And why this happened – you can not say for sure.
What should those who have cryptocurrency do?
What is better: sell or wait – it’s hard to say. If you turn to the direct participants of events – traders or investors, the forecast here will depend only on their personal interest. The remaining experts and specialists will also hold to their personal opinion, which depends on the legend they themselves believe in the most.
Now there was a drop in the rate of a thousand dollars, which put many off balance with the loss of trust with BTC. Even if growth happens, there will still be all new rounds of the fall of the cryptocurrency . The most important thing to understand is that the cryptocurrency as a new digital financial instrument has swung at traditional fintech and is trying to break this old system, but at the same time offers sophisticated calculation tools and digital money, which, firstly, are not secured and secondly, heavy in production.
Also, the price of cryptocurrency is very much directly dependent on forecasts and expectations, and this can make a one-point collapse on click. That is, Bitcoin will lose in value as soon as those who speculate on the value of digital currency will want to derail its course.
Professional miners at the end of 2018 create cryptocurrency faster than investors invest in it. Accordingly, this factor also puts pressure on reducing its price.
The global problem in ICO, and more precisely in its tokens in 2018. Interest in ICO has also fueled interest in cryptocurrency. We are now witnessing the collapse of the 2018 ICO model through massive sales of ETH to withdraw funds to Fiat. That is, investments are leaving the market. The American CFTC requested detailed information about their trades from the four largest crypto-burgers (Coinbase, Kraken, Bitstamp, itBit), and naturally the market also took this event negatively. And there are a lot of such factors that have influenced the overall trust in cryptocurrency.
Time to buy Bitcoin and Litecoin has not come yet
If we talk about purchases, then the time to buy Bitcoin, Litecoin and other digital assets for the medium or long term has not yet come. You can at your own risk play only on short slides. And the main thing – to understand very well in crypto-trading. That is, the newcomer is definitely not worth going there now. Bitcoin is the first crypt, and they are unlikely to be used as a massive and unified financial instrument. Again, this is all reasoning in conditions where there are no fundamental factors affecting the course of Bitcoin, so it is difficult to predict its further dynamics.
The only thing we can say is that the current value of all bitcoins is $ 280 billion – higher than the capitalization of the leading manufacturer of Intel chips, so calling the current cryptocurrency phenomenon a bubble is also premature. Bitcoin and other cryptocurrencies will take time before they can act as a means of accumulation, the most important property of money and get out of the dark zone of crypto speculators and form already in the “institutional asset class”. Before selling current stocks, you need to give yourself an account, and how much their purchase cost you initially and how long you intend to keep the asset. And that the current fall in BTC is not the limit. And you are ready to see the next big bottom at 1500 BTC / USD. And below there will be a large-scale panic of a burst bubble.
If you go back to the situation in the spring-autumn cryptmarket, Bitcoin over the years accumulated dollar capitalization, and the ICO washed it back into the real economy for several months. It hits both ETH and BTC. Every day, cryptocurrencies are becoming increasingly dependent on the real dollar. With a fiat cache, you can control the entire capitalization of the crypt.
Many are afraid of this. The situation with the washing out of Fiat is the most dangerous for the blockchain system at the moment. One of the confirming factors of the sharp fall in the value of Bitcoin was the interest of large investors. That is, the time of ICO investors and small traders is running out. Sharks come. And for the functioning of ETF-funds (cryptocurrency exchange-traded investment funds) huge amounts of bitcoins are needed, as it will be used as a basic security, therefore it is interesting for large investors who have an eye on the crypto world to buy them at the lowest possible price. And here we will see a further drop in BTC.