1. PixelPlaygroundHome
  2. Metaverse Insights

Why does the cryptocurrency price stay still for a few minutes? (Why does the cryptocurrency price always crash)

• Metaverse Insights • 132 views

Why does the cryptocurrency price stay still for a few minutes? Why does the cr

Why does the cryptocurrency price stay still for a few minutes? (Why does the cryptocurrency price always crash)

Why does the cryptocurrency price stay still for a few minutes? Why does the cryptocurrency price stay still for a few minutes?

1. When Bitcoin rose to $20,000, many people thought the price was too high. However, I don’t think so. If we analyze the price fluctuations of an investment product as a short-term indicator, we will find that its volatility is much greater than that of other markets. Therefore, for most people, this situation is meaningless and valueless (such as buying something now), but this does not necessarily mean that it will fall or rise. 2. After Bitcoin rose to 30,000 RMB, people often saw news like this in the stock market: the Chairman of the U.S. Securities and Exchange Commission, Jay Clayton, once said, “Cryptocurrency is not stocks.” He further explained that “although cryptocurrency assets currently lack support from well-regulated institutions, with more and more funds flowing into the cryptocurrency industry, the demand for digital tokens will become huge.” 3. When Bitcoin fell below $10,000, the “altcoin season” seemed to have arrived. Many investors believed that Bitcoin was just a bubble. In fact, due to the lack of clear market data or technical support, Bitcoin may never reach such high levels. Because Bitcoin is an extremely speculative virtual commodity, it is also easily manipulated. 4. Before Bitcoin broke through $20,000, many people even thought it was a bull market. “Since October last year, we have been in a bear market.” Some experts speculate that “the large rebound, like that around December 2017, is driven by retail investors.” These investors also predict that Bitcoin will reach new highs in the future. 5. Six years ago, someone proposed such an idea: “Before the Bitcoin halving, everyone has a different mentality.” Although Bitcoin was not so popular at that time, as time went on, this consensus was constantly strengthened and expanded, and a considerable number of people entered the Bitcoin community.” Mainstream currencies now have obvious advantages, such as well-known projects like XRP and EOS, as well as Ethereum 2.0, and so on. However, the problem is that most of these platforms have developed through hype, and there are still many exchanges in operation, which makes people more confident. Therefore, there are indeed significant risks in the cryptocurrency circle.

Why does the cryptocurrency price always crash

In the 2017 market on March 12th, the price of Bitcoin dropped from $11,000 to a low of over $9,400. After that, the market experienced a series of negative news and continuous price declines. It was not until this afternoon that the price began to rise again and has now returned to below $10,000. However, this time it didn’t change the trend of BTC’s price, but gave a signal that if it continues to decline and cannot effectively support the market, it will cause investors to lose all their money. Therefore, we believe that this stage can be a rebound for long positions or short-term operations. Friends should pay attention to this round of market crash behavior. Why is it like this? It is because people do not understand the concept of “halving” and these so-called predictions are only for short-term profits. Many people have asked the question, “When everyone doesn’t understand, many mistakes will happen.” In fact, for cryptocurrencies, it takes time to confirm their real value in each similar situation. The reason why “halving” is so important is that it represents changes in time, location, and factors. There are too many variables, so once people know what happened, there will be a reversal phenomenon. On the other hand, it also means that speculators are forced to take action, causing them to lose their money. However, some people also believe that due to the high volatility of the market, there are often no meaningful buying opportunities, which makes the whole industry more chaotic and unsustainable. For example, on December 17, 2018, shortly after the U.S. stock market experienced a major crash, global assets were sold off, including gold and crude oil. The Dow Jones Index even hit a new high. During this bull market, almost all other altcoins performed well except for mainstream cryptocurrencies. However, overall, their performance is not as bad as before, and there are still many bubbles, making most people in a wait-and-see state, unable to accept new market hotspots, but instead causing some project parties and institutions to enter the market in a hurry. Of course, there are exceptions. From November 16th last year to late February this year, Bitcoin once surpassed $9,000 and reached a high of $9,250. However, at that time, it was during the outbreak of the pandemic, and Bitcoin’s price failed to stabilize and continued to decline. It is now approaching above $8,000 and still has a long way to go since the day before yesterday. However, even so, Bitcoin is still in a relatively calm state. The price was declining from the end of 2017 to early 2018, oscillating in the range of $9,300 to $9,500 between the end of 2017 and the beginning of 2019. In the middle and late 2019, as Bitcoin prices got closer and closer, various technical indicators showed a strong bear-to-bull trend.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/24213/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 08/16/2023 03:21
Next 08/16/2023 03:44

Recommended articles