Why is cryptocurrency crashing? It’s important to understand why this happened in order to make sense of what happens next with Bitcoin and other cryptocurrencies that fall under the same umbrella. Read on to find out more about the crypto crash, including what caused it and why it might not be over yet!
What Caused Crypto’s Drop?
We have seen a 40% drop in just two days. What caused cryptocurrency prices to fall so quickly? Panic selling seems to be at play, but what is causing that panic? In today’s post, we’ll take a look at several possible causes for crypto’s fall from grace. There may not be one single reason behind it all; rather, it could simply be an accumulation of factors. Regardless of why it happened, here’s how you can protect yourself going forward...
What Does This Mean For Digital Currency?
One of bitcoin’s primary use cases is as a way to transmit funds outside of existing financial channels. The most obvious use case is international payments, but moving money without your bank or payment processor eating up a percentage of it makes sense in lots of other situations too. So, when cryptocurrency prices fall precipitously, some think it’s an opportunity to buy more crypto at a discount.
However, others see falling crypto prices as evidence that cryptocurrencies aren’t living up to their potential—and that they may never be able to. The truth is probably somewhere in between these two extremes—but until we know for sure what caused today’s crash (if anything), it’s hard to say where things will go from here. For now, let’s look at three possible reasons why digital currency prices fell so sharply today...
Will It Recover?
At time of writing, just about every cryptocurrency is in freefall. It’s a difficult situation to see unfold. If you invested in cryptocurrency recently, there’s a chance that you’re now feeling panicked and wondering if you should sell or hold on for dear life.
There’s not much positive news coming out of crypto right now, but we think it’ll be fine eventually. But what is causing cryptocurrency prices to drop so quickly? Let’s take a look at some of our favorite theories.
How Long Will the Crash Last?
No one knows for sure. The truth is, no one can know for sure. All we have to go on are historical events, current trends, and predictions from experts—and there’s a lot of disagreement among them. Some pundits think it’ll be over by Christmas; others say we might not see stability until 2019 or 2020. There’s even some talk that bitcoin could drop all the way down to $1,000 before things settle down again. That would represent a loss of more than 80 percent from its December 2017 high. Yikes!