Bitcoin and cryptocurrencies tank, why?
Bitcoin and cryptocurrencies across the board sold off hard today, why?
Like in most cases, there usually isn't one concrete reason why bitcoin sold off today.
Usually there is some piece of news that served as a catalyst or better yet, an excuse, for short sellers to hit the sell button and drive prices lower.
And sometimes all they need is an excuse...
In my opinion, there were likely a couple excuses provided to them yesterday.
(Source: https://sputniknews.com/us/201810101068772664-dow-sinks-800-points-as-tech-stocks-slide/)
The first likely culprit comes in the form of the US stock market.
Yesterday, major US stock markets took it on the chin in a major way, with the Dow down close to 900 points on the day.
That marked the largest single day loss since February of this year.
Contrary to what some people might think, that turned out not to be good news for bitcoin either.
It appears as stocks sold off, that selling also spilled over into cryptocurrencies.
While bitcoin and crypto are seen as a non-correlated asset, they are not an inversely related asset.
Meaning that when stocks sell off, that doesn't mean bitcoin should go up.
In fact, history shows that really hasn't been the case at all, though some would like to believe it is.
Bitcoin caught in the crossfire...
Higher interest rates typically bring on tighter financial conditions which could dampen growth going forward and equity markets are reacting to that.
I would venture to say that bitcoin represents one of the more risky investments out there. Which means that when risky assets are selling off like they were yesterday due to fears over rising interest rates, bitcoin likely gets included in the selling.
In recent history, when things start going bad for the stock market, it has spilled over into everything else, except for the dollar.
The dollar has been most investors' go to safe haven when there is uncertainty in the world.
Conversely, when times are good and money is flowing into financial markets, some of that tends to find its way into the riskiest of assets, which would include cryptocurrenices.
In my opinion this was likely the main reason for the drop in cryptocurrency prices yesterday.
(Source: http://bestgpuformining.com/cryptocurrency-future-says-christine-lagarde-imf/)
What else could it have been?
Another possible cause for the selling could have been the news released from the IMF.
They didn't have very kind things to say about bitcoin and cryptocurrencies and said that crypto assets in genearl may help contribute to the next financial crash:
"Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system."
(Source: https://www.cnbc.com/2018/10/11/bitcoin-price-nearly13-billion-wiped-off-cryptocurrency-market.html)
Seems unlikely to me when there are very few large funds in crypto and we are talking about a $200 billion dollar total market, though I guess there is still a small chance if things were to keep growing.
My opinion, this wasn't the main reason for the selling.
My guess is that the same high frequency trading algos that helped drive prices down in equities yesterday were turned on in the crypto markets as well shortly after stock markets closed.
Sell first, ask questions later.
Stay informed my friends.
Image Source:
Follow me: @jrcornel
I still find it difficult to understand why it happened so.
Sell first, ask questions later. Seems to be the theme.
The phase 2 of hyper wave is in progress meaning that probably Bitcoin is going to 1k.
That’s why. All depends at what price we close on Sunday 8:00pm EDT
Where do you get that number from?
Technical analysis of a hyper wave.
If we close under 5,490$ on sunday like I mentioned then there is no more support until 1k.
I know it’s hard to believe but so far it’s accurate.
That’s how hyper waves react and so far BTC is a hyper wave.
I am looking at charts right now and there is plenty of support from now until then. Give me a date you expect to see this $1k price by and I will gladly take the opposite side of your trade.
Im sure you know as I do that time is the most difficult thing to predict on charts. So let's see what the price will be on sunday 8:00pm.
Long term Bitcoin will existe until 2032, after that there will be no more us for it. China will be the economic superpower by 2032.
Why would there be no more use for it?
This bull run happened because of China.
The Chinese used bitcoin to export there money out of China meaning that it was money laundering on a huge scale. 80 % of terminals where in China at that time.
China will be the new economical super power by the year 2032.
Blockchain technology will go on but Bitcoin won't get to the prices predicted 100K and it will never get chance to become what it was suppose to be at the beginning.
It will mutate to something else.
Because:
And there are more reasons that I forgot to mention or still need to know add more here, to why the entire digital currency market is rather overvalued.
Keep on shorting... It will make the impending rally that much more explosive.
I never shorted it and never had it.
I reasoned their downside.
flagged for bid bot abuse @steemflagrewards
Steem Flag Rewards mention comment has been approved! Thank you for reporting this abuse, @themarkymark.
You bought votes to increase the rewards of your post above the value of its content. This post was submitted via our Discord Community channel. Check us out on the following link!
SFR Discord
Then why are you here, on a cryptocurrency blog?
Because I am interested and because I try to earn cryptocurrencies.
I have a little STEEM and Byteball and Manna (I regret to have registered to Manna. Is it even "a cryptocurrency"?), I referred mainly to Bitcoin.
Trevon James' words, that he makes cryptocurrencies and sells them and does not buy them are on my mind.
Buying and selling cryptocurrencies is a huge problem compared to trading stocks or bonds.
It is slower, more expensive and more dangerous.
I treat the making of them as a game, and in reality am unable to sell and I am unable to buy, unless I will agree to pay high fees in order to trade slower at a higher risk, and it seems as a bad deal for me.
Today I have less faith in Bitcoin and in STEEM than I had in the past, and these are among the most reliable available.
I have the most faith in Byteball.
It is the only one that I wish for its success and believe that it is possible.
I also wish that it had competition in terms of quality, and that there were decentralized exchanges that I could use.
flagged for bid bot abuse @steemflagrewards
Steem Flag Rewards mention comment has been approved! Thank you for reporting this abuse, @themarkymark.
You bought votes to increase the rewards of your post above the value of its content. This post was submitted via our Discord Community channel. Check us out on the following link!
SFR Discord
You got a 44.89% upvote from @luckyvotes courtesy of @stimialiti!
This comment has received a 61.73 % upvote from @steemdiffuser thanks to: @stimialiti.
Bids above 0.05 SBD may get additional upvotes from our trail members.
Get Upvotes, Join Our Trail, or Delegate Some SP
You got a 42.42% upvote from @luckyvotes courtesy of @stimialiti!
This comment has received a 62.50 % upvote from @steemdiffuser thanks to: @stimialiti.
Bids above 0.05 SBD may get additional upvotes from our trail members.
Get Upvotes, Join Our Trail, or Delegate Some SP
You got a 17.75% upvote from @whalecreator courtesy of @stimialiti! Delegate your Steem Power to earn 100% payouts.
This comment has received a 50.51 % upvote from @steemdiffuser thanks to: @atempt.
Bids above 0.05 SBD may get additional upvotes from our trail members.
Get Upvotes, Join Our Trail, or Delegate Some SP
It sucks when the Dow and BTC move in sync 😩
Sell first, ask questions later.
Someone dumped few btc..big deal.
nice analyst about bitcoin
It does make sense given how the herd mentality works with risky assets. However, these are mostly short term and bitcoin would actually be a safe haven like gold if concerns of the stock market extend to other financial markets like bonds and real estate for example. Will be interesting to see how those markets play out.
Good point. May move together in the very short term. However, a longer term bear market may actually be good for bitcoin. We will see.
The drop was in the chart analysis. I thought we wanted the current financial system to break so that mass adoption can occur. It's kind of a strange thing to want though I guess.😃
Posted using Partiko Android
Haha, there is that as well. Higher works for me, I would prefer if the entire financial system didn't have to crumble for that to happen first though.
True, mass panic would be something else.
I wonder if there's any documentaries on the transitions of past monetary systems? Lol
Posted using Partiko Android
That would be pretty interesting to read/see... How did the transitions from shells to gold go? Also the transition from coins to fiat?
Maybe it was because Crex24 announced they are going to give free coins every day to registered users... So people started acting like Lemmings and sell excess coins because eventually a lot of exchange rates dive hard as people try to hoard as many free coins as possible and sell them as fast as eggs exit the rectal zone.
I'm sticking with my sell everything theory. :) People flee to dollars from anything that is considered a risky asset. Bitcoin and crypto rank pretty high on that risky asset list.
I think its just a dip due to fear of senate hearings but it will always be tough to actually see what drove the market down.
Yes, it is often tough to tell what caused the drop, but in this instance I think a liquidity crunch is likely a good guess as people seemed to want to go to fiat right about the same time.