Bitcoin Forum

This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.

The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.

I think what you're trying to say is that crashes are needed to redistribute bitcoin to the strong hands from the weak hands. In order for the price to increase we will need people with a lower willingness to sell but that doesn't mean that we need a crash for such a thing to happen.

Crashes are useful in ways, take for example the last one, if we say 6k is the bottom, we now have many who bought in for large amounts at 6k, they will then be holding strong for a while more for a considerably higher price, whereas we maybe lost a lot of people who had initially bought in the 1-3k range and were willing to take their profit.

While I agree with the premise, the simplicity of it is that it all comes down to demand and supply at a certain price.

These crashes occurs because the market is immature and there is plenty of money coming into crypto from the regular joe on the street that would not even consider investing, for example, in high tech publicly traded companies.

So, yes there are necessary and they are welcome. I don´t particularly like to see my portfolio loose so much value in a week, but if that´s what´s needed... so be it.

We will see such crashes in bitcoin because bitcoin appreciated so much in so little time so it would be healthy to see some correction. Also, there will be traders would be love to lock in some profits. It's totally normal in crypto universe.

So you basically want people to sell at a loss and lose money, so that things could be better for you. I rather them sell at that little profit that you mentioned and then get out, and for the price to steadily rise.

I believe the most benefited by crashes in price are the big investors and not the little ones. The strong hands become stronger, the weak hands become weaker and in some cases, the weak hands lose all their coins... Surely some new enthusiasts benefit themselves from crashes too, as it's a good opportunity to buy cheap and hold, but for each $1 profit a new enthusiast/little fish makes, a whale is making $100 or even more...

All depends demand and supply, we could skyrocket without any crash if the demand were always high.

Actually even if we don't need it, it will always come around and that is only natural because cryptocurrency works like stocks that there are certain period or time that market crashes because demand will not always be high and besides change is inevitable whether the price will go pump or dump.

Your statement didn't make any sense to me. Bitcoin's price depends on many factors and not just on what traders want to do. The situation in your statement represents a very small fraction of the entire bitcoin market. First of all, you need to understand that we don't have a regulator in bitcoin market who will step in when the bitcoin price is falling. So the entire bitcoin market reflects the raw emotion of the public. Definitely speculators playes a big in it, but that's not all.

We have a lot of investors who still believes in bitcoin and don't sell off their holdings just because the price is low. Instead the lower price gives them an opportunity to score more bitcoins at a lower price and average out their buying price. We are too small to judge a reason for bitcoin's price decrease as it is based on many factors.

Of course we need the price to go down. But not to clean the market from panic sellers. We need to reach a stable price, because this last uptrend was manipulated and that made lots of people to buy Bitcoin. This correction is very healthy.

You really understand how the game is being played out and of a truth we need both the bears and the Bulls to keep this market growing and progressing. If bitcoin don't get dump we would not buy bitcoin at the right price and and sell high in other to make profits and vice Vasa.

bitcoin price crashes is considered healthy and unhealthy for investors. It's not beneficial for everyone to have these panic sellofs. mostly the one who can benefit from these are the whales who can still have high profits as they're selling in bulk as compared to investors who have too little to sell. with these buying and selling in bulk, they'll soon control the market and can manipulate btc price.

It does not really matter if we need them or not. If the market forces insist in doubling the value of the whole market in less than a month, it is not surprising that corrections kick in.

 This might be really a good idea how more people will ve engage with bitcoin. But if the crashing will continue, Bitcoin would look like not attractive to people. The only way to make people invest with it is to see them that bitcoin has a bright and assured future. There were many things to make bitcoin attractive, and making it crash from time to.time would may get people but on the other made them think that bitcoin is just a pump and dump coin. Bitcoin should continuously gain an increase in price, this would be better looking.

Are you blaming the crash on newbies? The bigger issue are the people who control and are better able to manipulate Bitcoin. Assuming there are such entities, which I think there are. These are the people that dictate things.

In fact, the price of Bitcoin depends on many factors and not just on what the merchant wants to do. I think you just want to profit from moments of accident only.
in fact, the price increase after the price drop is always present at any market price, just wait, a little bit to survive ..

It happens in every product and invest. I hate to sound like a professor but the law of supply and demand applies on everything that has a price. No wonder it will also happen on bitcoin. . Price crashes are good for investors because it is the best time for them to invest while panic selloffs are best for those who wants to convert their coins into cash. It's been like this for many years and I think it is one of the reason why bitcoin and alternate crytoc urrency are very popular.

The time when the market is down is when the crypto can stabilize its value and investors can invest in it when its value is low. Market fluctuations are indispensable to find crypto cores that are able to grow stronger and eliminate the incompetent altcoin.

It’s normal and healthy to have some correction and I think a lot have expected for there to be a correction since the price got really high last money in just a very short period of time. Unfortunately, some people don't know about this and become victims of panic selling. Some like the price to be always rising and get scared once the price drops even for just a little. Seasoned traders know that the price has to go down every once in a while otherwise this would not be healthy.

Read the post properly, and you'll understand what OP is talking about. To cut a long story short, weak hands need to liquidate their positions (preferably below the point they got in) to allow the market to grow further afterwards, and for that to happen we need crashes and corrections every now and then. In other words, whether a crash has been initiated artificially, or due to the market being overbought, it is a very healthy occurrence helping the market forward in the long run. This way, the bottom after each next crash will always be higher than the previous bottom, and this trend is something we have experienced consistently throughout the years. Great and spot on observation by OP.

Yes it's pretty normal that we need some correction. So New comers will come and buy bitcoin at this price don't worry about the price dip but look it further it's future price. Bitcoin crashes is part of the Fuds spreading online.

These were all about people does not contented the total benefits from bitcoin, but I am pretty much sure that the management of all cryptocurrencies are doing their best to make the operations will done in a good movement and balancing system. We cannot blame if price going down or going up, those people are complaining their losses are already got benifits and income from bitcoin. In business, we learn to accept several losses, because if we compare the equivalent between losses and profits the equal results are more higher on profits compared on your capital being lost.

U[s and downs with regard to its prices is a normal occurrence with bitcoin based on the previous years. A lot are taking the opportunity of its downfall to buy because prices are low and they would expect to profit from it later on.

      Most of us are quite happy if the price crashes because it is the right time and a chance to buy more and keep it for a long time. But it is considered as a panic selling for those who had fear that price will not go back to higher again. What happen is normal ,if there is a panic selling,the buyer and investors also panic buying at a lower price and when the supply  running out then the demand increasing,this is the time that price will go back to increase and give value to a certain products or coins.

Well if you really are a big holder of BTC then you may find your self in dizzy or fell the pressure when dip happens. When many traders do hold and have faith in BTC but sometimes when they see the  big crashes sometimes panic more favorable decision for them. I agree the fact that when crashes happen it may be beneficial and make the market more healthier.

It's a case of there always needing to be a fresh supply of people who are willing to buy at a higher price and less people who are willing to sell at a higher price. If we still had the majority of people who got in to bitcoin at under 1 cent then they would almost certainly be willing to sell at the current price, at least a large portion of their holding. We need those bitcoin to be moved to someone who is willing to pay a higher price and will want more before they sell.

This crypto world is like every man for themselves.

What I mean is that OP you're looking at it on how it will best benefit you, and in a way dismissing those who sell at a loss. They certainly do not want to sell at a loss.

I guess what I'm saying is that if you had the power to affect the market, and ran a scenario that made people sell at a loss, in a sense it's like breaking into somebody else house and taking their money. When somebody breaks into another person's house, since people value their life, they shouldn't be surprise if the home owner shoot them dead.

There's no need to crash btc price because the price are base on users,traders and investors if they still sell their coins in high or the investors invest big then the price continue to grow,we can see the price in different exchanger like binance that the price of many coins drop down and go high,the more popular crypto become the price of digital currency go high also and for me crypto create for a good transaction with our own online wallet so if this will continue to grow and all country acknowledge crypto already then the price will go really high in that time.

Who would actually love to see price crashes if you are investing on cryptos? It's only the people who love to invest needs price crashes so they can buy cryptocurrencies at a lower price. And who needs panic selloffs by the way? It's only those who want to buy needs a panic selloffs so that they can buy cryptos at a very low price.

We need it for correction and to give chance for others to get it cheaper but I think we have too much right now. It's becoming unhealthy and it should stabilize or else, we are either going back to the start or resume this revolution on the next few years.

Agree on principle, but that's just the principle of the market. If you don't have makers, you don't have takers. If you don't have sellers, you don't have buyers. It's actually as simple as that. And yes, by virtue of choice, people can have "strong hands" and "weak hands" but I feel it's a disservice to use these labels so easily. We can't do without the "weak hands", we know this. And we won't have a market if we all held. Look at stronghand coin as a matter of joking reference and we have super thin orderbooks with nowhere in sight.

I agree that after a certain price corrections, a price pump follows next. That it the effect of price dump, this is due to people who panic sell their coins and when the market started to recover demand for btc will increase that makes the price go up.

You are referring to weak hands. You have your point, market crashes shakes off weak hands and empatient hodlers and traders. However, if bitcoin price will go up in the future, it is inevitable for someone to sell during the peak. Even some good traders and good holders will even sell when price recovers.

To my opinion price dumps and crashes are normal but panic selling isn't. I always think that by now people should have already learned how Bitcoin and cryptocurrencies market is functioning and what are the basic rules and according to that also adjust their behaviour.
But the same story is repeating over and over again and doesn't help but only makes things worse.

Of course, this is so. Not only does bitkoyin need a crash, but altcoyins too. There can not be constant growth, and there must be a drop, although it is very difficult to foresee and know exactly when there will be fluctuations in the market, as the crypto-currency market is relatively young.

if you dont want to see loose in your portfolio so meaning you had sell all your coins when the dip last week when the market is filled with blood and no ones seeing a green?lol  op has a great sight on the issues and such a brightful mind to see that logic.salute on this one OP

You got a point, and is true. Everytime the support lines are at a higher value so this is why we can say Bitcoin grows, but definitely it needs to crash to be lifted.

Maybe.  And it will give more opportunities to people who have a little money to buy and invest with bitcoin.  When bitcoin price goes down, it will help bitcoin to be bought by many people.  And when many bought it, its price will definitely goes up.  I agree that bitcoin price falling is needed.

You should expect and having these price corrections do signifies a healthy market which i do really love to see on these kind of market where there is really a price correction because if we do talk only on moving up prices it do signifies a manipulated type of market which isnt really good for any investors or people who do engage with it. Everything would really settle down and as a wise investor or trader we should really know on how to ride the waves.

A crash won't always happen - not like how corrections or price drops normally come around. Cryptocurrency is very much different from stocks however in the same way they are similar as to how demand affects their price.

Price crashes only come when there a huge dump is made or when many sold their coins. When negative news or FUDs come about, people choose to sell because of their fear and this makes the price go down drastically. Most traders take advantage of these price crashes and are able to buy coins at a low price when this happens. This is what OP may have been trying to point out as a need.

I think that corrections from time to time are necessary. Crashes not so much. In a crash many people lose much money. In case that happens to somebody new to the crypto world, that person probably is not going to come back. And you can't expect any further investments from his side in cryptocurrencies. A loss for both sides I think.
Besides, a market that sucks money out of people, I always tghought that's what the banks are for...

correction must always happen for the price wont have complications for the traders not to have false assessments in every coins to invest..this is the big source of lossing when the price of coins does not have real value instead being bubbled by those whales only

i think crashes happened to balance it all out. if the price of bitcoin just keeps on increasing and it's not decreasing, trading will be impossible because traders will just keep it for long because the longer its kept, the higher its value will be. there will be no circulation of coins.

Your statement seems totally illogical to me.Crash is always not good for bitcoin's progress and even now, we could witness panic selling to be an ongoing act and so bitcoin crash and panic selling would not help for bitcoin price to increase in future.

Crash is over used as a word, pullback in bitcoin is normal even if its 50%.  Actually we declined at not a great pace, normally a big crash is like a day event where prices suddenly reverse beyond the control of anyone and faster then even the news can describe.

We didnt really crash, it declined over more then a month.    Thats pretty steady by crypto standards I reckon.   But sure I agree generally, its more harmful if we dont pull back to confirm previous prices.

Distribution raises and expands involvement is how I've read it described.

Crashes in bitcoin is just a part of getting higher profit, if bitcoin price become stable in the top we cannot buy it anymore.
So this big crash is just a chance for us to buy or invest more, because after this big crash big comeback will rise and big profits are waiting for us.

I thought about that but if we proceed from the assumption that the weak hands are small fish mostly, the redistribution you mean will lead to even higher centralization of wealth in fewer hands. Big fish are unlikely to sell their bitcoins for a lower price, in the worst case they would write them off completely rather than record losses. Further, strong hands can allow the price to rise higher because they won't be quite content with tiny profits unlike weak hands ready to run. So strong hands are definitely better "equipped" for the price growth but without a major crash, there won't be wealth accumulation.


Yep, crashes mostly affect those who can't afford to lose their money, and these are weak hands. But it is not just about strong hands becoming stronger at each turn of the wheel. The irony is that with each crash weak hands get removed and less stronger hands turn into new weak hands. And they will get slaughtered at the next dip. But since they are still stronger hands than those kicked out at the end of the previous pump and dump cycle, it will probably require stronger crashes too to get them thrown out of the market. And while crashes will likely lead to higher prices in the future, we should also expect deeper crashes along them as well.



I fully understand what you both mean and I agree with your points wholeheartedly but we should keep in mind two things. First off, no one forces anyone to join this game, and second, this is a zero-sum game anyway where someone's profit is necessarily someone else's loss. So you are right, of course, every man is for themselves here. But you know the rules and if you don't accept them, you should stay away from the game. You have that choice.

It is how Bitcoin and other cryptocurrencies roll. Everytime Bitcoin falls all the things I will see is that Bitcoin will fall and it is the end of it but when I see Bitcoin rising again it is a proof that Bitcoin is not a bubble and it is proving other people wrong. Let us think of it that every time Bitcoin goes down it is the time where Bitcoin is testing as holders if we can endure the red market. Crashes, Dips, and Corrections are all the things that I love about Bitcoin as it is an opportunity for me to buy it cheap, as a late entry in the market the price corrections are my only opportunity to increase my position without adding any capital.

Not only that which having price corrections do really signifies on having a very healthy market which i would gladly see if prices do behave on that way because if we do see only just rising up its price most of the time then its not truly a healthy market which do definitely can be called as a bubble or manipulative type of market which we dont really like to have because we do know on how it works and how those whales will really make money out of average traders or investors below.

Not only is that a unpopular opinion but it is the only stance to have really on Bitcoin going up and down. If you think it will always go up you are delusional and don't understand free markets. If you know Bitcoin's graph will be stochastic in nature, you understand free markets and you OP you get the free markets unlike most people in the world.

These crashes or so-called price correction is necessary as it provides the opportunity to traders to enter the market at a cheap rate.

I think theres a big difference between a crash and a correction. After a crash the coin is worthless and dont recover. Thats not what happend in the past weeks. We got a correction because bitcoin rised to fast too much. So the panic sellers just make it worse, but it wasnt a crash. Everybody whos in trading and stock markets knows that we need corrections. So we need corrections, yes, but we dont need those panic sellers!

Its just a signal or a notification to us or rather a wake up call for us that, we should go buy more of it we should invest on it, now is the time to do that, appling law of supply and demand, you know how it works i dont need to further elaborate it to you. But thats how it goes, demand goes up, prices goes up.

Basically if you are an active day trader this is what you should do but not everyone are an active day trader some of us are likes to hold their crypto until the prices rises up and it will be a good thing as a long term trader rather than a short term trader.

Yup, even I believe that the price increase is greatly fueled by the loss from people who sell for less.Just like how pyramid schemes pays its investors trough the capital of late investors.

Thats why a smart investor will always hold and will never sell for a loss.He knows that it will rise up, if not today maybe tomorrow.But it won't stay at red forever.
Most of the people will panic and will flow with the majority by selling off what they own for a loss.Making the dip even more concave.
But everyone isn't a winner.
Every time bitcoin rises back and the smart investor always wins.Because of the loss gained by noobs.

These market turns are good also to teach everyone how trading and having digital assets is. Just invest cautiously at first until you know the basics of all this world.

Well, I'm not quite sure if I understand your point correctly but isn't the price of any traded asset defined by the balance of supply and demand? I like to think that it reflects what traders actually do and this is what "the raw emotion of the public" ultimately comes down to, that is either selling or buying a coin. Also, I don't fully understand how a regulator in the Bitcoin market or its lack relates to the point I'm trying to make here. Sorry if I wasn't very clear in my post and caused some confusion.


I think it is a matter of convention mostly. Personally, what you refer to as crash, I'd rather call a failure or fiasco, the f-word.

I agree on this one which it cant really be considered as a crash yet we are still seeing some huge percentage price decrease but you cant blame people on calling it as a "price crash" since they do always expect price would really be high in bitcoin and into any other altcoins in the market and we should be grateful on seeing price corrections because this do truly indications that we do have a healthy market rather than seeing a stable appreciating price which isnt really normal at all.

Don't get me wrong, but I think that your view is way to focused on price and speculation and you should really focus on a fundamental view. If you consider bitcoin development potencial, and current adoption level, it's obvious that the price will rise if bitcoin succeeds in it's goals. It's "simple" mathematics and offer/demand principles. Bitcoin fundamentals alone, justify the investment, and if people invest the price will rise.

Of course that speculation will always come into play, and that is what makes the price crash and move forward in cycles. Some people just panic sell for no reason, others understand that's how the markets work, and sell to be able to buy at a lower price, thus maximizing their investment. There are of course those that don't want to risk trading, since it's hard, and still believe in the bitcoin fundamentals and consider it a good investment, so they will just hold.

The educated investors that also know how to trade don't really need crashes for the price to rise, but they do like them because they can use the dips to maximize their investment. The educated investors that don't like to trade, don't really care about the crashes and will just patiently hold their coins until they can use them. The other guys, those panic sellers and fomo buyers, are just here to feed the others until they educate themselves.

I don't get you wrong because I'm perfectly fine with your idea. It could be rephrased that we need real adoption if we want consistent growth. I completely agree with such view if that is your point. Here, in this thread, I'm trying to describe what happens in practice irrespective of our own ideas about how Bitcoin should develop. In other words, I focus on what we have, not on what we want or should have. In a sense, it is not like my idea how things should go on in general. And, yes, I agree that organic growth is better than speculative.

Here we go again!

Many traders, me included, have been closely watching Bitcoin behavior these days, and it looks like my idea about the necessity of dumping bagholders holds some water. The last few weeks we saw a few feeble attempts at breaking through the resistance which had built up around $12k. We failed, and the reason why we didn't succeed is most likely due to a lot of people wanting to sell at their entry points. These people should have sold at a loss when Bitcoin crashed to $6k in early February but they obviously knew better and didn't want to book losses so they held to their precious coins. Now there may be another storm brewing which will take us down the hill and make people sell in panic to free the road to new highs in the near future.

In such way, bitcoin price is dependent on the current trend and movement between the price and the stock or the Bitcoin. It is mostly depend on the people who want to buy Bitcoin at a specific price. So basically price of Bitcoin is dependent to the people support and tradings habit.

Crashes of price in bitcoin and the rest of the cryptocurrencies are just normal but panic selling made the situation more bad. Prices goes down deep during panic selling and it's a good opportunity for use to buy cryptocurrencies at a very cheap price.

Because that's how the market works in a "speculative" environment. All is based on speculation and if there are news that will pull down the prices and you panic and sell then you are "weak", mentally. And when you sell, other's grab the opportunity to enter the picture. And the process goes on. I won't call it required, but its the process that we need to undergo to move further. Yeah, its kinda sad to hear it but that's it works, unfortunately.

how is it bad? if prices are down and people are panic selling that's a great opportunity to buy a large amount of coins especially if you want to get some top coins because we know later on these coins will surely pump again and it has been repeatedly happening throughout the history of crypto market.

Yes i believe we need the weak hands to give up their investments when the bictoin starts to plunge so that we can buy bitcoin at a lower price. If all people hold their bitcoin then there will be no fluctuations in price. We need these fluctuations for the value of bitcoin to increase. These newbie investors are the ones helping us gain more by giving up when they're at a loss.

Actually ill just waiting also the bitcoin will be going to crashes and i think in that we can buy some bitcoin. In the first place bitcoin will be going crash until to run into high value jut why some of us are waiting for that moment.

If you mean that all people without exception withhold their bitcoins, which would lead to an empty Ask side of the orderbooks, then the price would be infinite because bids will leave the Earth. If you mean that most people stick to their stashes of coins, then it would only add to fluctuation because there will be fewer asks and prices will be moving like mad. If more liquidity contributes to more stable prices, we should expect it to work in the reverse order as well. So less liquidity should lead to higher volatility, either at higher prices with fewer asks or lower prices with fewer bids.

Price crashes are a way of whales to make loose hands dump their coins. This way only the true believers in the coin stick and are more likely to hodl their coins and not just here for get rich quick.

crashed situations before reach the higher price and sound good for me but the problem is when crash started everybody got panic and they looks don't believe bitcoin will recover the price soon and starting to sold all of their bitcoin and eventually people can't utilize downtrend and when the price high again they usually regretting their decission why don't buy at the lower price

Wow that's a very interesting point of view I have never thought about it in that way ... It's really important that we realize that every thing has 2 sides and this is what you made me realize today.
Well.. panic selling is ..kind of very negative in my point of view ..but that's really great that non serious people are getting out of the ... View and ..more serious ones are buying Bitcoins who will be able to support it for long term...

It makes the market undergo a continuous cycle maybe, but as for me I think this ups and downs would just give us opportunity to react, improve our investments because this gives us opportunity to buy and sell at an optimal benefits for each scenario.

For the price to be balanced it most rotate and move in both directions before finding a central area. When bitcoin is falling the reality is that this provides opportunities for people or traders to buy bitcoin and other coin at a very low price and sell them for profit. Bitcoin bearish is what give momentum for the next price movement.

We never know who buys the coins. Me seems that after each panic sold coins concentrated in the hands of whales. This makes them more influential and makes it easier for them to manipulate prices. I don't see anything good about it. So I never give the chance to buy my coins. I don't sell them during price drops.

The only reasong why we need crashes and panic sell offs is for the new comer to come in the scene.  with all the advertisement and promotion, people gets aware that Bitcoin exist but with high price, investors are quire afraid to enter or worst they cannot afford to enter anymore.  With price crashes and sell off bitcoin goes down in price and with that short span of items getting cheaper, buyer or investors flocks in with the new funds with them pushing the price to go up.

I think the price crashes make the panic selling more . The high investors play the main role in this game when they invest high income in crypto then the value of the bitcoin raised and they hold their invest for a time when they get back the investment from the crypto then the value start fall and most of the people start the panic selling.

This is debatable. Personally, I'm more inclined to think that consistent price growth helps promote Bitcoin much better than constant crashes and incessant sell-offs. Why would newcomers want to buy a coin if they can't know or reliably expect the price to rise in the near future? If anything, high volatility scares the pants off most common people wgibh want to invest long term. Indeed, short-term traders and speculators are here precisely because of severe price fluctuations, but this is definitely not what most people are looking for.

We don't actually need it. Market can grow anytime with faithful holders only. But surely, panic selling is not avoidable. If you can actually force someone to hold their coins with selling anything I think prices today are extremely higher.
Though instances and senarios like crashes and panic selling would benefit the more investors that would want to hold too by buying cheaper coins. Crashes would let more stronger holders in. Less users are attracted to invest like for an exaomles, people bought when it's almost twenty thousand dollars. Yet it falls to half.

Last time the price of BTC fluctuates frequently, small investors also have more experience in the market. At present, although BTC prices have fallen, they will not sell their losses, they still hold BTC and hopefully they will increase again in the future.

There will always be new investors which have only come into the market and don't have the time to hold the falling coins. Big whales are recognizing the new opportunities and selling other coins they think have reached the high price and they have set the goal for. Everyone has their own standards and limits for selling and this demand for the sold coins is with each month getting ridiculously high.

All the coins that are currently on the market will change their prices in the future. Most recognized ones will change in value to higher limits. Panic is what makes the market stronger because the new opportunities after the panic has started can provide specific coins to get up.

I also forgot to say that the outside factors can also influence the market and because of that some of the whales are trying to control the market and they are actually causing the periodically market crashes over time.

I do not know if we need crashes but I do know crashes are inevitable its simple economics, an asset goes from being overvalued to undervalued and vice versa, when it is overvalued there is no way for it to go even higher in price and this eventually creates a sell off and this creates panic in those that invested late regardless of their knowledge and skill and this at the end creates a crash, in the process some earn money and many lose it and in return those that earned money can now make push for other technological advancements.

You are absolutely right, and as many have pointed out these corrections are healthy for the growing market. If we look to examples from traditional and mature markets for example the corrections that occurred as result of the housing bubble 'burst' of 08. The markets than were boated with repackaged, triple A rated mortgaged backed securities which many knew were full of subprime mortgages (we could relate this to coins such as S**tCoin or Coinye West). Since these toxic assets were racking in billions of dollars a year for the banks and investors much like seen in our own ecosystem, it was only till a few negative events occurred like the bankruptcy of New Century (a mortage lender) where the downward spiral of the markets began, for us that was our Tether or Mt Gox moments. These crashes recreate a healthy ecosystem, and make worthless coins, worthless. We talk about store of value, however the only thing we could use to place as a value of the coin, is the work need to produce that coin. So in that, coins that rely on PoW should in theory have more value than PoS coins as they are more energy intensive. That is my two cents.

This is an interesting point of view :)
In fact, the ups and downs are BOTH necessary for the market to discover how much it CAN go up and down. If it would go only up, nobody would know how much it would possibly go down, should it ever go down. If it would only go up, at some point it would possibly crash down to nothingness.

When crashes and no news or things that can make up demand, for example now bitcoin prices are not as high as before dumps even when it could reach $20k, I do not think we need a crash or panic sell to make the bitcoin price much higher because it only depends on the demand to raise the price, I mean if there is a crash or panic sell but the demand is not high.

Yes I think this kind of thing is needed even though it make some people panic sometime. But I think the up and down of the price of Bitcoin and other crypto are very normal and usual. Actually, with the decreasing of the Bitcoin and crypto prices, this will be a chance for us to buy and collect some crypto that we want as much as we can. This kind of situation can be an opportunity for those people who want to start investing in Bitcoin and other crypto. Actually, if we learn and thought about that, this thing is not entirely wrong and evil. That is why I just do long-term investment so that I do not have to worry.

This is the best way to pump more the crypto and bitcoin because when the value goes down we will see the that all whales will buy a lot of bitcoin or cryptocurrrency so it id time to buy when the value id so small to get more money soon.

In my opinion it is much better to hold because we all know that the price goes up and down. We dont need to panic selling our bitcoin it is not necessary a good idea because you can take loss and regrets. Have courage in holding your bitcoin to get much profit because it will rise soon which we called as a promising coin in all over the world. Instead of selling those bitcoin , a good idea is to buy bitcoin because the price is down.

To attract more investors to the cryptocurrency market, it is necessary to have such strong fluctuations that many investors can buy into the crypto that they like. Bitcoin if continuous value over $ 10k then many investors will be very anxious and do not want to invest in it but if bitcoin is priced 4k - $ 5k then there will be more money than buying bitcoin, then new market can grow stronger.

Eventually, price crash can be controlled or consider for being manipulated while the sell off are the emotional being of the traders to sell when they saw a big loss on their capital. Significantly, the crash in the price is a cycle and its not a need as bitcoins needs to establish a good and healthy supporting range before it goes up and not that days to spike more upward.

Yeah strengthening and weakening prices is a natural thing happening in cryptocurrency market. sometimes a weakening price is needed so that others users can buy and collect more bitcoin for the next pump. maybe the price weakening occurs because of the natural (demand and supply) or occurs due to manipulation. but the point is the declining price is a reasonable thing and may be needed by some users.

we desperately need them to panic to sell the assets at cheap prices and we buy the coins they sell. better avoid the game of hyp and cloud mining that will make you lose.

I find your analogy between the subprime mortgage crisis of 2008 and what happens in the cryptoverse quite appropriate and fitting. With that said, though, I can't agree that PoW coins should necessarily be more valuable than any other coins in existence today. I'm not very tech literate in this matter but I know for sure that the amount of labor put into creating something has little to nothing to do with its price, even purely theoretically. The price and value of an asset is determined by its utility and usefulness, not by amount of effort required to create or acquire it.

I agree, crashes and selloffs are all part of the cycle in the market. Nothing in the market will have a straight upward movement. In order for cryptosphere to grow, it is a necessary move to correct itself to prove that whatever FUDs and crashes happen, it will remain resilient and be the future financial system.

Definitely right that nothing in the market will have a straight upward movement and everything must be in balanced. Therefore, it's normal to have ups and downs that we see in price movement of the crypto. Some people find crashes  an opportunity to buy coins because this is the time that we can make some good profits in the future especially bitcoin.

I'm more interested in the causes of these failures. When the stock market falls, there are reasons for this. It is possible to analyze this phenomenon and to make some predictions. But I can't see the reason for the bitcoin price drop. It bothers me. Of course I also do not like a long period of price decline, but this is not the most important for me.

It can be said that investors come (and go) in different styles and colors. There are value investors like Warren Buffett and there are speculators like George Soros. Neither is much pleased with Bitcoin. And there are people like the Winklevii twins who consider Bitcoin as the future. So it all depends on your attitude regarding your investment goals and ideals. For the Warren Buffett type of investor Bitcoin is of no use and value because there is nothing in it which would reliably produce value in a dozen years. Soros says that Bitcoin volatility is just too much for a currency. The point is you can't really expect everyone to be happy with Bitcoin price fluctuations.

I didn't mention manipulation, but this is actually one of the big actors in forcing prices to go down so that whales can fill their bags again, after that they have dumped at ATH.

When it comes to bitcoin and the price movement,it all depends upon the news coming out of a country,if the news is negative the price will go down and so on,it is entirely dependent upon current events and anything can happen at any given time,there is a massive sell off from the old MTgox and i think that is holding the market down for a while and it might continue like this for a while.

BTC is easy to attract new investors when the price is low!

They will listen to some experienced investors and buy some BTC when the BTC is below $10,000! The market has new investor, only has the possibility of rise!

Yes I do think you have a point. The rising of the value of bitcoin could somehow be because of the them who do the panic selling. Some investors who at the time when the price drops take it as an opportunity to buy the coins and when everything is bought the supply is lowered again so that the prices rices also. During such time as the price goes high, the investors then analyzes the market for the right time for them to sell their coins again not at a losing point but when the price is really high. So as a general conclusion in this BTC will always be a roller coaster ride. Up and down crashing and dumping and yet again rises up just to fall endlessly in the pattern. Which gives the reason why it is so volatile.

2018 the start has being shaky and prices have dropped mostly than the rise. this has happened over the years that in beginning of the year the price does not rise much and later as the year progresses we start seeing the price jump and suddenly btc crosses 15 and 20k is also possible in coming time.

Canis, your thinking is valid and you got a point. You are thinking out of the box, I like that.
However, I think you got it just a little bit wrong. Yes, if speculators want big profits it is indeed beneficial to them for the market to correct (this should be the right term, not "a crash", a crash means that the market went past the possibilities of a quick recovery and it never happened with Bitcoin, at least not so far). It is also normal to see the market rise in steps, the market just rising up is an ideal that cannot be reached in the real world (although Bitcoin's run from the end of the last year was crazy.

What Bitcoin needs is for the weaker hands (Poker expression is deliberate) to leave the market thus leaving only the strong holders - albeit corrections this actually stabilizes the market. You can consider the market mature only when it stabilizes and that would mean that generally only strong holders are left and the 1-5% percent of weak holders and daily speculators cannot hurt/destabilize the market. The current situation when you have the market reacting to almost every news out there shows us that Bitcoin is far from maturity and that is the ideal situation for experienced investors to take opportunities and take all the money from the fish (Poker expression is deliberate yet again).

Well that is impossible because bitcoin can never crashed in other to rise or redistribution of bitcoin the technology behind bitcoin has made it impossible for it to be control and the only thing that can affect it price is either low demands because bitcoin operate on the economy law of demands and supply and at that as time goes on bitcoin get more popular and get generally accepted.

It seems to me that the reason for the large volatility of the cryptocurrency market is the unification of the cryptocurrency and Fiat markets. Dollars has long been captivated the whole world. There are many people who have a large number of unsecured dollars. They can always have the opportunity to buy crypto-currencies in large quantities and to manipulate that market.

And I would say you definitely have the right to be bothered or even get worried. You don't see the reason because you are searching in the wrong place or rather at the wrong time. You are looking for explanations in the stock market of today but you should sooner be looking in the stock market of the dotcom era. The cryptoverse today is much more like the dotcom bubble of late 1990s than it is like today's stock market. Bitcoin as well as other cryptocurrencies are just too speculative without any real value in Warren Buffett's terms to support their price in the long run. Stocks, on the other hand, have at least some value because companies behind them are producing real shit, not just vaporware as it was with dotcoms back in the day and now with cryptocurrency coins and tokens.

We can't blame Warren Buffet for his era. Yes We're in 4th industrial period and i would love to see what cryptocurrency looks like 2 years from now. after Halving some coins will eventually fall down. I will be happy that those coins who has a real use will stay and some of them will fall, One thing for sure there are Crypto enthusiast that holding good coins and probably they will hold it for long term.

Yep, you're right. That is a usual technology to make newbies sell in panic, and most of them sell. And more and more disappointed ordinal investors, average people are left without a penny. Meanwhile rich are getting wealthier all the time

It seems that for a while might take a long time to complete. Remember, nothing is more permanent than the temporary. If only one whale was able to crash Bitcoin almost 3 times, what will happen if a dozen of them decides it is time to cash out? Bitcoin will likely fall to 3 or even 2 digits. News can affect prices to a degree but in most cases their effect will be limited and short-lived. Whales and their actions affect prices by far more dramatically.

Bingo on the part where you mentioned about wannabe traders. You do realize that like 75-95% of traders are like that. Prices going down is healthy but if traders lose money, then more money goes to the whole which then defies the whole point of decentralization concept as in markets not being controlled by anyone.

Well, opinions may vary but as far as my opinion is concerned, I think that a price fall as low as 30% of December highs pretty much counts as a crash. And we are still half the maximum price of $20k. We haven't seen a fall that massive since the Gox fiasco, so it is not something which can be called "normal" whatever yardstick you use. Anyway, right now it is definitely not about "market rising in steps".


This is the interesting part of your post. Your main omission is that weaker and stronger hands are a relative notion. I remember I have already mentioned it somewhere and maybe even in this very thread. In a nutshell, there will always be strong and weak hands, there cannot be only strong hands in the market. It's kind of a given. While weak hands leave, less stronger hands remain, but it takes even higher volatility to shake them out. In other words, it works in the opposite direction toward more volatility. Obviously, this is applicable only to speculative markets, but Bitcoin undoubtedly belongs to this category.

In order for BTC being the ideal medium of transaction, it is pretty bad that we have these crashes and panic sell offs. As for the sake of trading we need this because this is where most of the traders got their earnings, at the crash and dumps.
We are still at the early stage of crypto, that's why some panic sells specially for the whales are critical in order for the supply to be distributed to millions of people. If they will not sell, then there will always be a threat in the market in every moment because a single entity can make a dump and can ruin a stable price if he has a lot of coins.

Hundred percent agreed with your statement. People are always talking about who is controlling the prices of bitcoins. Even though bitcoins have been affected with different fraud news from China and Japan and other countries, still it managed to make place in hearts of users.

Whales are there to disturb this place and shrink out bitcoins from the minds and hearts of people. And they becoming successful every other day because of panic sellers.

Bitcoin are controlled with middle class investors that’s why when there are uncertainties would create panic that would make  bitcoin price go down. Yeah we can consider that being new in the crypto stock market this  usually happen, but  at least we leaping up to the next level look the price now how  it grows compare to the previous  years. In other words we are starting to be matured.

I dont really think i can cope with this, if an economic crashes and panic selloffs happened then that means the reputation of the investment instrument also at risk. Why would anyone want to invest in an instrument that crashed as soon as it surge, it didn't take a month to crash bitcoin since it highest peak. Also i dont think any wannabe traders sell of their coins when the price is low because their volume didn't even mean anything in the market.

We're talking about huge amount of money that could drive a market into a trend, its not about whether the prices will grow because of people buying or selling but how the price will grow "IF" bitcoin still has a meaning and future in the community.People didn't invest in the price, they invest in a value of something. If something has value much and now the price is undervalue then it would be a good decision to invest but a decrease in price didn't have the same meaning as a price crash.

I think you do have something there, I can see the point and it feels somewhat true because we
see and experience Bitcoin's eccentric rise and sudden rapid fall more occasionally now. As long
as bitcoin stays decentralized it will create and trigger more panic selloffs and at some point crashes
especially with altcoins whom in recent times developed an uncanny link with bitcoins fluctuating patterns.
The crashes and panic selling of investors does have a bit of constituency with bitcoins increasing prices,
it's price' recovers more better as an aftermath to the whole ordeal. Seems like a cycle to me.

It works both ways actually. On the one hand, there is an accumulation of cheap coins in fewer hands when many small traders are panic selling, and this is apparently a bad thing. But on the other hand, if the price crash is caused by some big whale cashing out, which seems to be the case with Mt. Gox coins, it also leads to a more even distribution of coins and more hands having bitcoins, which is definitely a good thing. How many hands will have coins in the end, when the dust settles, remains to be seen, though.

Dude I’m always in support of panic sell offs, they are very important. This is a market that we are into and not play thing. There will always be buying and selling for the market to progress, and some people will have lose for others who are more smart to earn from it. So I never advise people not to sell their Bitcoin, all I say is that everyone should sell whenever they think is right. That’s it, nothing else.

Sometimes it is needed for the price to decline and we get a chance to be able to buy when price is cheap but the prolonged panic sellofs are not a good thing for the market. I'm afraid the panic will spread to many users and make mass panic and chaos happen. hopefully the price crashes only lasted briefly, not happen for a long time.

To be honest, that's what I'm thinking myself, though the outcome largely depends on the causes of these massive panic sell-offs. If they are caused by a big whale and we discard collateral damage in the form of panic sellers at that, the net effect can in fact be a more even distribution of coins after all. The negative side effect may be that, though, more coins may actually be bought by fewer hands, so we can't say it conclusively whether panic sell-offs really contribute to a "productive" redistribution of coins in a major way.

It can lead to a price reduction that is not suspected tampa that we realize must be careful in selling it by waiting for prices to rise ,,, can be seen every hour if you want to get a big profit never follow a friend to sell it.

Crash and panic is not something you want in a normal market.   Think of a market as a crowd of people talking and perhaps exchanging ideas and prices obviously.       These two elements of extreme price movement and emotion over reason mean these ideas are ignored and little discussion and price discovery takes place.

If nothing else a price that moves too rapidly will not be open fully to the range of buyers and sellers around the globe and as Bitcoin is part of a large market that is always partly sleeping we do need some development time for free exchange and benefit to occur for all.
Orderly market is something you will find the Federal reserve always refers, they dont essentially care about the dollar worth but to lose a market completely even for a day or so is not profitable long term as it disturbs holders and investors who are not trading constantly

For me those both situations only make market better for investors to just catch some coins at good prices for trade or just hodl next months.

You may not like it but this is how matters stand nowadays anyway. Besides, i don't think we can actually speak about "reputation" here. Price crashes don't hurt it because there's nothing to hurt. Rather, they reveal Bitcoin's true nature, that of a purely speculative asset. In other words, whatever reputation Bitcoin may have built, metaphorically speaking, it was all false and deceit. One shouldn't expect too much from such an asset apart from extreme volatility and rampant speculation. The leopard can't change its spots.

Holy moly thats a really negative view you have there.   Bitcoin has been established a fair while now and its done its job every day of operation.   Where exactly do you see the problem with its operation that it deserves such a poor view.   The failure that occurs in price is not part of the protocol itself, this is part of exchange transactions and its mostly down to the people themselves how fast price rises or falls.

The biggest negative for Bitcoin is the transaction fees and speed/ease of use perhaps.   That is being addressed, there was no real deception here.   There have been scam coins at various times so its not impossible but all the faults you list come with people buying and selling anything.    This is not a socialist enterprise thats for sure

In all the financial markets there is a common factor that is price increase and price crash there is no asset with a constant price or steady price in any financial markets. The price of all assets depends on the economic and political factors such as demand and supply as the word of crypto's reach far and wide the price increases and when there is any news on the regulation of bitcoins in some countries lead to ban which causes slight dip in the market and ultimately causes a crash in the market as the crypto user's tend to sell the cryptos when they hear any negative news on the cryptos due to panic with the fear that the prices will not recover. Only when the prices crash and people sell others buy them and invest and the network becomes busy.

Its true by nature, and thats why i said that i can't agree with this statement that we need price to crash so that people can buy at lower price and hoping bitcoin will rise once again because as we know that bitcoin or any investment assets are at stakes of reputation if they crash. Once that happened there is no turning back, it already happened once last january and i would say that its just a minor crash so basically there are still lots of faith left in bitcoin. However if there would be another case of price fallout, then there is no doubt that bitcoin won't survive long in term of investment instrument.

We can agree to disagree :) Look at the Bitcoin, it had 4 of "crashes" like that so far. It even has a predictable trend through the year now. Check it out. But I do agree opinions may vary in this case.


Yes, there cannot, but the ratio will change. The market never moves towards more volatility, except if it is in the adolescent phase or reaching its end.
What you mention "it takes even higher volatility to shake them out" I take as a very valuable mention. You are completely right, as the market reaches the stability phase, what was in is mostly left in because the volatility should go in opposite ways in order to shake things out.

This is due to the law of economics of supply and demand. You cannot dictate people not to panic selloff or hold their account for as long as we want. This is because the law of supply and demand says that if there are many people see the price of BTC become overprice many will do selling for profit taking. After huge profit taking it will hit the lowest price where in many people think that the price of BTC became too cheap then these will be the time again of buying. This cycle of buying and selling will continue as long as there is supply and demand for crypto. The same logic you have interpreted but different approach only.

I'd sooner say that Bitcoin's speculative nature contributes to its volatility rather than its decentralization or lack thereof. If we had goods bought and sold for Bitcoin in appreciable amounts, that would definitely help stabilize prices and diminish volatility. On the other hand, though, I'm more inclined to think that proper decentralization actually adds more toward price stability than volatility because at uniform distribution (an ideal situation, or best case scenario), there would be no points of shameless price manipulation via financial muscle.

There are a number of reasons of why the price went down, the most important for the recent decrease in price is that someone began to sell a huge amount of bitcoins this scared traders and investors and this made the demand to go lower and when you have a big supply and lower demand the price will go down, however bitcoin is also susceptible to things like FUD and political manipulation but still with each passing year the effect of those two things goes down.

Well, I can't actually say there can be prolonged or extended panic sell-offs because panic, as the word itself suggests, is an action or behavior which happens on the spur of the moment, without planning in advance. Otherwise, how can it be panic, right? Other that that, I generally agree that long price declines is not something which traders should be happy about, unless we are talking about aggressive shorters, of course. But then, they could be blamed, at least partially, for forcing down the market price of Bitcoin or whatever asset traded. Over time, panic sell-off become exhausted on their own since people get somewhat used to low prices and downward volatility.

yeah, but in fact that sell out started if February but media  pointed out for this only in March why?
I will agree that bitcoins is highly sensitive for all kind of FUD and news.. I'd say extremely sensitive..
and it is really not going to work for TA models)) cause according to TA is should rise to 15K, but instead it is going to 7k))

True but also consider the fact that bitcoin is main source of money for buying an altcoin. If bitcoin price drops then the value of the altcoin drops too. Those who want to buy that altcoin need to be careful at what price they are buying otherwise they will not be able catch when they drop.


Unless you do a very in depth minute-to-minute analysis its not possible to make cash for every small pump and dump that may happen. Of course if you talk about personal peer-to-peer trading then its a different issue.

But what is a normal market to you? Apart from the dotcom bubble some 20 years ago, there was no market as speculative as that of Bitcoin and other cryptocurrencies in the modern era, at least not what I remember of. Commodities are backed up by, well, commodities, currencies are supported by their governments, but the only support that crypto enjoys is faith in its future growth and expansion. This is a perfect speculative environment and it is "normal" for the prices to behave chaotically in this kind of environment. In a nutshell, you can't order Bitcoin to be more stable or somewhat less volatile.

This price of over corrections should not occourred in our system not to panic. Instead, it serves us to be strong and patience in this market. Yes the chance to catch the prices at a very low rate is good for investors.

Governments dont support their currencies very well, most western governments are running a budget deficit and filling the void by printing more money.   So they are debasing the countrys exchangeable currency by gifting themselves new money.

I dont really call that support, its more like undermining and the value currency has comes from the people who trade, earn, produce and create value in society with the utility they provide via work, etc.

Why then cant those people be using crypto currency which is at least a known quantity with a clear equation behind its value.    There is no maximum to the amount of paper money produced, ask the people of Venezuela how this ends

You got that right, OP. Despite the frustration a decline can give, we can only reach a higher and better rate if we experience these occasional crashes. I think that it somehow maintains a balance that is needed. Despite the factors being barely unknown to the reason of its downfall, a crash should also be considered as a good thing for it allows opportunity for new investors to grab. As more people buy when the market is red and as the supply decreases, this will contribute to the converting of its rate from low to high. A crash is what we need to somehow refresh the rate and bring it into a higher range.

I always think about this issue. This is the way of big investors to create fake news to deliberately push the price down. And when BTC goes down the lowest, they will buy a large amount to push up the price of BTC. And the waves of the market will give them a high profit.

panic selling is usually caused by an event that is not expected by the investor. it sparked investor fears and led to a massive sell-off, followed by frightened retailers and selling stocks that resulted in sharp drop prices accompanied by enormous volumes. market crashes are usually caused by panic selling action. I think this is the panic that makes the market stronger because of new opportunities after the panic has started to give special coins to wake up.

We need to analyses market ourselves in detail so that we can take right decisions in the nick of time. Bindley following others in financial regards is not sagacious at all. Your financial status and needs are very different from your friend or relatives. You need to come up with your strategies and ideas. For bitcoin, obviously selling off in dips is going to put you in great loss if you had bought it at high rates.

Investors never like panic selling, even those who are waiting for the price decrease, in fact investors mostly wait for the time when the market take a correction and the price comes down a little but we always hope that the market will recover its position very soon, when the market crash then investors feel reluctant to invest money there.

We need price crashes and sell offs, but some people won’t understand. They are all always expecting the price to be going up steady, always. And they never mind the market cap, all they want is steady increase due to their own selfish reasons which will in no way benefit the community. As for me, I like to see the price rise and fall all the time,, cause it’s very important.

In fact, I don't want to say that it is better for investors but that's the thing that speculators may be looking for exactly. These are not the same.


Truth be told, I don't have a tooth against Bitcoin. It's how people are using it. But I have nothing against that either. I'm just pointing out that you wouldn't expect a lot of stability from a speculative vehicle. Indeed, that has nothing to do with Bitcoin itself or its protocol. Though I don't think that it's going to work out or just change anything, to an appreciable degree. I mean fixing transaction fees and making transactions instant, for example. The problem is a way deeper, and I'm not sure it can be solved.

It seems to me that now the price of bitcoin can not stabilize and go up even if we do not sell coins. Now there is a mass reset of coins after the ruin of the exchange. Small users don't have enough money to buy so many coins. After the reset will end the price will go up. The concentration of a large number of coins in one hand is probably the biggest drawback of bitcoin.

You have points by stating the facts about price crashes and panic sell offs. Yes. Crashes is the way of regaining the power again in this land in terms of prices. The declaration of decline in the market prices can be a positive things or negative things. The impact of this is on the holders. The holders will conclude by assuming prediction that ohh, maybe, what if, why, what will be. The holders will think no hope at all, but some will remain strong in position that it will be back again. Just wait.

Well, myself, I wouldn't use the word 'reputation'. As you yourself say later in the post, it is more about faith. And then I certainly agree with you. When Bitcoin crashes so hard, people lose their faith. But that's how things often happen with faith in real life. People who blindly believe in something, which is what faith is all about, typically end up being deceived. So you shouldn't actually be surprised with how the events have been unfolding since December. It was sort of set in stone and written on the wall at that.

because when price crashes and panic selloffs happened, we can buy at the bottom :)

Decreasing the price of bitcoin for investing people is a great advantage.I do not think the price of bitcoin will continue to fall.I think that the moment purchases will provide good earnings.

We need price crashes to buy a cheaper coin in order to have a advantage to get more profit returns if the prices will pumps. It is not a good way to panic selling bitcoins because probably it will loss our bitcoin and regrets the happening.

crashes are good or bad? it depends on which side of the game you are on. it's of course good for those who have sold earlier or come in too late, but bad for those whose hands are weak. People who took out mortgage or took on leverage might go bankrupt due to the crashes. I daresay they won't like any crashes no matter how good it might be for the overall health of the market.

I don't really believe we can measure crypto markets by the same yardstick as we do with, for example, stocks, or even just one stock. It could be said that volatility is built in with Bitcoin. There is no significant use for it outside speculation. That means that it can't be stable. When it moves toward more stability, people become bored and they start to withdraw their capital from Bitcoin, which, in turn, leads to volatility. In this fashion, crypto volatility is a self-sustaining process which can maintain itself on its own.

I think it's all necessary to make changes to market prices, because crashes are needed to distribute bitcoins into strong hands from weak hands. In order for prices to rise and panic behavior, selling at low prices.

i think crashes happened to balance it all out. if the price of bitcoin just keeps on increasing and it's not decreasing, trading will be impossible because traders will just keep it for long because the longer its kept, the higher its value will be.

We have to track all those crushes)) be prepared and learn all the time! We can use Mapofcoins or Coinmarketcap to follow the newest tendencies and price fluctuations. I'm sure most of crushes are quite predictable and we can benefit from them.

Well, FIAT money market (and there are a lot of speculation markets connected to FIAT money) is usually measured in a similar way as stocks market while for FIAT money the same rule applies - it's value is made only by what we are willing to add. I like the rest of your comment, especially the statement about the boredom, I believe that is true.

Thats why i said for now people might still have faith in bitcoin but whats left of it if there would be another fallout? I prefer reputation because bitcoin is an investment instrument and every investing instrument uphold their reputation to stay alive and stay stable to maintain their investor. If bitcoin happened to dropped again like this recent days and reached a crash towards $2k again then bitcoin will surely lose reputation among investor as investor lose faith to bitcoin.

So i think its a mutual concern between bitcoin and investor and its more like wording than actual understanding and no i don't suprised with event unfolding since december as i said in my previous post. If bitcoin really valued much than there is no reason to have a crash and panic selloff. It would only happened "IF" bitcoin really didn't have value anymore and then there will be price crash and if that happened there won't be any rise in bitcoin price.

True - smart traders try to catch these moments and use them to buy cryptocurrency for fewer prices. It means that only a person with cold mind and heart can finally win in this battle and get his benefits.

We need those kind of things because that is how we are going to make good entries for the market and if we will be patient and wait for the right time to enter the market then we will not be worrying for the possible loss to get since we all know when to enter and exit the market and that is why it is better to study the market first and watch the price actions before making any action.

They are important somehow. If prices are always trended towards high how can any other person buy bitcoins? That would be like impossible for someone to get into bitcoins world. It would be a train that is passing through a station only once whos ever left it, could never be part of it anymore. So avoiding all such circumstances, developing teams have worked out on it.

Yes, it has become known that a Mt. Gox guy was selling something like 40k bitcoins December through February, and he still has 4 times as much. And I'm afraid that until he sells it all, we won't see prices rise anymore, to any appreciable degree. People will always think that there's someone who's ready to take advantage of them. Well, there was always someone like him but no one saw them sell their coins yet. Until now.

You're not making sense. The comparison with a train is ridiculous because if you were standing at a station and the train would pass it you wouldn't be able to get in, right? Now with BTC the price passing a point doesn't limit your ability to get in! With the price at 1000 you can always go in at 1050, or 1200 or any other. You will simply be buying less for the same price, but you will be getting in and you will be gaining more value with time. I can't believe you're really seeing a rising value as something bad.

https://i2.wp.com/transportgeography.org/wp-content/uploads/stages_bubble.png?w=720&ssl=1

The classics never die.. they just find new markets.

From Jean-Paul Rodrigue (2017)
Bubbles can be very damaging, especially for those who arrived late with the hope of getting something for nothing. Even if they are inflationary events, the outcome of a bubble’s blow off is very deflationary as large quantities of capital vanish in the wave of bankruptcies and financial defaults they trigger. Historically, they tended to be far in-between, but the scale and amplitude of bubbles has accelerated; web/technology stocks (deflated in 2000), real estate (deflated in 2006), commodities (deflated in 2008) and crypto-currencies such as Bitcoin (deflated in 2018).

I tend to disagree that Bitcoin right now is extremely sensitive to FUD or just sensational news. It has become kind of invulnerable or even invincible to them. Let's remember the Chinese news that were shaking and quaking the markets through the entire 2017 year. At first they were making a difference and then this difference began to taper off until their impact came basically to nothing. But Bitcoin cannot be made invulnerable to large sell-offs because its price is still in the realm of economic laws like those of supply and demand.

CRASH AND MAJOR SALE OFF IS REQUIRED TO MAKE ANOTHER HIGH CONSOLIDATION AND FOR MORE INFLOW OF THE MONEY SO FUD IS CREATED AND ALLOW MORE TO COME IN.

For me the panic selling is not a good thing because it has a lot of effects on the over all performance of the bitcoin, also the bitcoin is the decentralized currency so more people getting this panic, the worse it becomes but on the positive side, it has some better thing to offer because most of the new comers join the bitcoin whenever the market is down, so this positivity brings more investment to it to cover the loss.

Actually we don't need that since small time people can't afford to see that since they may lose some huge value if the price go down severely and hence if it occur they don't have money to buy back.  That's why I really condone those rich people who spread fuds since they creating those bad words which can make people lose and get panic while them they earn with people's panic mindset.

Perhaps, this mostly refers to little-known and unpopular altcoins at such exchanges as Yobit and their likes. Major altcoins like ETC, LTC, etc are all traded against fiat as well, and it actually remains to be seen where's more volume. Apart from that, the majority of people who trade these coins are well aware of their dollar price and their cross-rates.

Don't write in all capital if you want to be read. It's much harder to read. Make it easy for us, not hard.
Crashes do make it easier to buy the coin, but they also discourage people who got scared and lost money. So out of the pool of people involved in crypto you're losing a group and gaining a new one. If there were no crashes new people would eventually come anyway and it would be a much healthier process.

Not that I disagree at large with your point, I just want to clarify that governments are not supporting their currencies directly as in setting some arbitrary exchange rates and then trying to keep them at any price. Rather, most sane and experienced governments are targeting price inflation rates because this is the real support that fiat money needs. On the other hand, for export-oriented countries it makes sense to keep exchange rates artificially low - as long as they manage to keep inflation bridled, of course.

The rate is pretty much normal with its volatility on the line. Some factors in the market and the partnership with bitcoin affects the rate. This is normal though because I think this sets as an opportunity for new investors so that they can invest in a lower price since bitcoin doesn't really fall down into a very critical state which everyone just turn their backs on bitcoin or something.

I do not agree, because after the collapse of Bitcoon, investors concern him with great apprehension, which is why the so-called "stability" (7K-9K) has now come.

This will necessarily happen in the future. In general, people look only at their own profit and therefore bitcoin will first decently rise in its price, and since it will have a high cost, a significant part of the bitcoins will be nervous and constantly monitor news information and the bitcoin rate. If the bad news coincides with the decrease in the price of bitcoin in the event of its volatility, some of it will be regarded as a manifestation of negative information and will sell their bitcoins. This will lead to a further fall of bitcoin and then a real panic will begin. In a short time, bitcoin can almost completely depreciate. This can happen several times until bitcoin rises high enough.

Nowadays most of the people panic for the bitcoin price down. So don't panic. it any time to up and down. So bitcoin price up and down it help to people invest in the bitcoin. if price will be down. This right time to buy and hold the long time. then wait for the price increase. Then sell it. Bitcoin is change the future life. So don't panic. check the price day by day. then get ideas and time to sell and buy the coin. Market place is help to gather more information of the all coin price list.

It is just a dream for now bitcoin is not going to be stable in price ever, bitcoin will remain high and at the top forever as the most volatile currency, as price crash is the time when all people get opportunity to buy bitcoin and hold for long time, when more people sell at panic price automatically get down so they buy and hold for long time,. I am sure if price will keep on changing then within one year bitcoin will gain high value as an investment.

I would say also, the less competition we have here, the less guys are participating, the more profit we have, as a strong hands, so yeah, this cases is our highly important!

But to make it happen quite difficult because each trader has a different attitude so that when bad news comes about bitcoin, the majority of traders immediately sell assets without thinking in the future and worsen the market situation.

Constant peak is not good in economy that's why there is economic cycle. I treat bitcoin as our economy where we can stabilize the boom in a long run but we cannot prevent it to fall. If the price will always be on top, there are no more people that will try to invest in bitcoin. If that happens, the market becomes exhausted and turn it down again.
We cannot prevent the prices to dump because it depends upon how the people react in the market.

Many traders have different strategy and some are panic selling cause negative things comes in their mind first, we need panic sellers to decreased bitcoin price and buy, well this is the systematic rules to gain profit while others bankrupts in their investments there are few people that earned huge money.

The constant and regular buying and selling of bitcoin and other cryptucurrencies helps keep the market alive. We do have people who just want to sell off to have Fiat just for some emergency need; they don't care if the market is in dip or red. The panic sellers too sell off because of not  doing real research on the altoins they are holding

indeed events like this often happen, because many who think that the price will not come back again or will not rise again, but this event sometimes come only briefly.

Yeah you're right the price crashes may be necessary for the buying and selling to stay alive, imagine if the price keeps rising, maybe more people will sell than to buy, actually the falling price is a reasonable thing of a market, and it gives the other user a chance to buying bitcoins at a cheap price

Yes it is usually happens price of bitcoin never remain the same as it gets high and low, so we need to sue the opportunity at right time and right place, it is good to buy when you find price falling and sell when you find price increasing, so we want price crash to get the chance to buy low and sell high to get profit and grow our bitcoin the best way.

It is not we need crashes it is just crashes are inevitable, even in a heavily regulated market like stocks we see crashes at least once a decade and in a market like the one we have it is natural we will see more crashes than that, so as long as we remain concentrated in our goal of making the most out of our investments we will never fall victim of the crashes and we will keep holding and only sell when we reach our target price.

Actually what we want is for crypto currencies to be controlled ny the masdes themselves by buying and holding crypto currencies. Panic selling just helps whales to control the market prices as it is. The price crashes happens when people sell. This is coilunter productive to what we want which is a stable and strong coin.

This is actually a good thing, and I agree with what you are saying, crash and panics are needed most especially for traders, this events cause us to be able to buy cryptocurrencies which prices are just so high in prices which are more affordable, this way, we will be able to make lots of profit in return.

Crash in a market is normal specially for bitcoin. People tend to sell their bitcoin specially if government and/or news like regulation, ban and fork is spreading. I saw different news like this that makes the market crash but OP is right- Bitcoin will just soar up once again.

This dumps, we definitely need it because it will be a good opportunity for us earn profit and take advantages of the volatility. Aside from that, dumps will also attract investors to buy coins for very low prices which will affect the market prices positively making it rise again and making us all gain profit. Dumps could take a long time before a pump happens again and this is what we are currently suffering. It is really stressful and frustrating but holding on to what I believe that bitcoin will be a big thing in the future, I don't have plans for selling what I have for low prices. I will continue hodling and doing trading at the same time. I know that I just have to be smart in doing it.

I am agree with this opinion. Panic selling can clean market from weak hand. When peoples holding bitcoin for long term, it will reducing supply in market and thats make bitcoin price rising again.
We should not be a panic seller because cryptocurrency market still a new market and i am believe this market will growing bigger than before

 Great opinion on the topic, additional inputs, newbie often time Hold on to long to their Cypto currency coin, which in turn affect the market movement dependent on the volume of investment was put in into the market, Yes, it is normal happening in the market to experience some up and down on the price value of one coin, market is Volatile, it is only the strong remain during this time which eventually indicate the possible huge investment after the down stream or the crash, end result a possible bull run or spike high of the market price value of crypto coins.

Sometimes, of course, a price shock for bitcoin is necessary. And periodically the collapse of bitcoin, also, apparently, is inevitable. Bitcoin will sometimes rise rapidly in price and also fall quickly. Beginners will always be in a panic selling their bitcoins. Sometimes there will be big ups and downs, but they do not bring popularity to the bitcoin. Big volatility bitcoin, most likely, will always remain, and with it, and large price swings.

The good thing about bull runs is that it will attract new punters who are looking to take a quick shot at making some fast cash. Bear markets will weed them out leaving the serious players and stronger hands

Actually the value of Bitcoin and other altcoins must come down for one to be able to buy at a cheaper rate and sell later when its value appreciate.Although there are so many factors that are responsible for Bitcoin up and downward movement and the one you just gave analysis is just a fraction of what move Bitcoin up and downward direction.

The reason why we need bitcoins to die sometimes is because of the people who does not have a decent amount of money to invest, so volatility is always needed in order to earn more profit.

This is true, but those who wanted to sell the crypto currency at a low price and panicked already certainly did it, and now there are only people who will never sell their cryptocurrency assets cheaply. So I think that the fall is over and prices will start rising soon.

No one can predict the crypto market. all crypto markets are already set up ie investors who have large assets.

No assurance for that mate, there's still a lots of chances that the value will fell, don't forget those short traders who manage to buy btc in a cheap value, for sure they can easily sell out and drag down the price, just like what OP said its better for bitcoin to crash for a while and when the right people holds it and begin to hold and believe that this future money will be more valuable then it will rise high without any limits.

The trading volume is very weak in the session and the volume of trading is strong once the price starts declining indicating the probability of falling will increase. In such a case, the risk of Bitcoin dropping is likely to occur

It is simple to understand it. In that way people sell and others are buying it, result getting benefit. Crashes and panic selloffs create new opportunities for people who believe in cryptocurrency. They can buy for good price.

such if enough enough enough Keep will be an existing one of the last blocks. if they are determine that, they will be successful as that they will waiting and the valid price.

I'm not agree with you. In order for bitcoin to rise again in price, it should become a reliable currency, but in the near future it definitely will not happen. Growth bitcoin is possible only if the financial institutions are again believed in and begin to invest monay.

In my opinion, BTC just need new investors. Doesn't matter if it's a reliable currency or not.
When new investors will come (and they will) BTC will rise again, probably with a long bullrun.

Yes I agree with you. decline is needed so that the market is not saturated and increasing investors to buy coins at cheap prices. the greater the volume of coins the coins will have value in the future.

This is the way of big investors to create fake news to deliberately push the price down. And when BTC goes down the lowest, they will buy a large amount to push up the price of BTC. And the waves of the market will give them a high profit.

The rule of the Elliott curve is that after every up phase or upstream as it is referred to there also has to be a down phase or what is known as a correction phase in which the general public which hold bitcoin but do not use in circulation exit the cryptocurrency market so the coin could return to its equilibrium state

Thinking about it because I think now bitcoin is already at the higher volume as more and more people are trying to have it, so in this situation I think people should support bitcoin to rise than thinking about the panic to see the price down, but at the same time it is best way of getting profit for a lot of people I am sure soon price will rise but now bitcoin price is at miner crash so try to buy some coin at this ratting of almost 6k dollar.

I understand that price precious on good moment to start investing. Panic sellers give our support unity to buy it and low price and fast so it is only good thing for the polarity of Bitcoin.

because we need a cheap price to buy and add to our investment assets. next we hold to wait for the price to rise again. this is what is so far profitable in bitcoin.

Honestly your correct..  This changes in price of bitcoin create lots of panic seller...  If you are easily carried away with your emotions in the end you will end up losing so much profit... For me bitcoin crash really twist on our work...  It is just like we are working in this kind of situation to test how goos our strategy is...  And how wise we are...

I can understand the concern of OP and I appreciate the healthy falls similar to the correction that took place in the first quarter of this year. However, I don't think that price should fall frequently as far as there is a supporting user base to back the growth in the price. The recent price Valley was a result of the involvement of big whales and institutional investors so there was no user-based to support this exponential growth and hence the correction was healthy for the growth of Bitcoin in a long term. I am sure, this correction not only helped Bitcoin to stabilize but also to grow at a sustainable growth rate.

The price of bitcoins is too expensive in the past which no one can invest so there is also a time like this which we need the market to dump in order for us to earn profit in the future.

I don't think if it is really right to wish for crypto to falldown so that we can buy it at a cheap price because it will also be a reason for others to lost their interest on crypto that will make it very hard for the crypto and the market to recover.

In all things must be some balance. But I don't sing that price crashes are so bad and we must be scared about it.

I am a day trader so I am not afraid when the market goes down. When the market goes down, market turmoil is a time for me to buy and make a profit. ;D ;D ;D ;D

There are always speculators who buy a lot of cryptocurrencies waiting for a rise when others panic!
They like the market crash because they can make money!
When the technology and cryptocurrency of the block are truly accepted, the market for cryptocurrencies will prosper!

The panic selloffs the way for the people in the cryptocurrency market who are long-term investors to, take the money, what happens is when  there is a correction phase and people sell their assets for the current lowest cost in fear of losing more, the amount difference lies in the cryptocurrency market,

I think this is done in order to stabilize the market, something like correction. What we see now, I think soon we will see a rise in the price of bitcoin and all the crypto-currencies:)

It is quite funny though, but there is still some sense in it. Maybe the seldom crashes and panic selloffs can rid the market of the possible future dumpers, or who may always be responsible at spreading FUD about Bitcoin and other cryptocurrencies.

Of course it will happen because that is the simple cycle of the market of the cryptocurrencies. There will be a time that the price will just go down like hell but there will be a time also that the price will go up like there is no tomorrow and that is why, I love getting the cryptocurrencies at the panic selling stage because that is where the best price is.

With the price of coins that are chaotic and declining it will make us want to buy it again. Because usually people want to invest in a cheap price, not too expensive. Therefore we need it.

Maybe the seldom selloffs of cryptocurrencies helps determine that the market is still alive. When there are selloffs there are also buyer waiting for the price to drop down. This is where the buy and sell occur which is good for a healthy market.

YES, you maybe right on the topic question as posted, but one should remember that Market is Volatile, price value in the market may goes up and goes down dependent on the Volume of investment put in by the investors, we should also understand that there some degree of truth about possible price manipulation by WHALES behind the market trading.good luck guys.

I think bitcoin price crash in past several months because peoples panic and some of it peoples taking profits from highest price. I dont believe that if we want bitcoin price rising, its need crash first. Its happen because peoples panic with negative news. When bitcoin price reach highest price, some peoples liquidate their profits and selling their bitcoin. Its happen in all market, but I do believe cryptocurrency market will recover again and reach highest market cap again

at this time the decline of bitcoin makes everyone panic and fear of their money lost, but there are also people who take advantage of the current situation like this, because he thought must be down may be able to buy more btc and when rising clearly profitable gains are certainly lucrative.

I believe that in vain people began to panic and sell their bitcoins when it cost $ 20,000.  Maybe he would have grown to $ 100,000.

Well market manipulation is a dark truth in crypto market. This thing happens because the market is still very young and not widespreaded yet.
Crypto really need a global adoption.

We need them to gain some profit from it and also to put a sell demand on the market.,
I know that it is really bad thing to use other people to gain money but it is their choice to sell it we are just grabbing the opportunity to get some at a low price,

reaching a stable price would be a dream. but is it possible?

In fact, the ups and downs are BOTH necessary for the market to discover how much it CAN go up and down. If it would go only up, nobody would know how much it would possibly go down, should it ever go down. If it would only go up, at some point it would possibly crash down to nothingness.

We need the price to crash in order for us to hoard coins in a cheaper prices and in this way we can earn more profit when the market prices goes back to normal.

I think market will constantly shake off weak hands and panic sellers from the market, so that whales or big players can accumulate more bitcoins for the next bull run.
As long people will be selling their bitcoins in fear of loss, price will always decrease, as there can't be whole market of holders, this is impossible.
This is common to the whole market not just btc actually, and i assume this situation is unlikely to change.

The volatility nature of cryptocurrency makes it difficult for the cryptocurrency prices not to take a swing at intervals.
This is what some investors should have at the back of their minds.
If they have full understanding of this, I don't think anyone would want to panic sell at loss.

I do agree on that, the volatility of the market is the reason why cryptocurrency prices is swinging in the market and most of the investors should know be studying the situation in the market before investing a huge amount in order to determine if they will be gaining profit or not from the coin they are interested to invest.

Very interesting idea! And it is very true - if you look mathematically, the serious fall of the market make it possible to quickly come to the optimal purchase price.

Maybe your analogy is good enough to explain the crashes in the market but i do believe that crashes only happen due to certain people who are creating fake news or negative speculations which makes people to panic selling their coins and the market price will obviously drop.

We need price crashes and selloffs because they can benefit from it. Other investors use this strategy to make a huge profit in the long run of there investment.

It is completely inevitable, many people think that everyone in the forum will become rich by holding their coins, and while technically that could be true, the major players that want to enter in the market of bitcoin are not going to allow that so they are going to manipulate the market so the weak hands sell for a bad price while they buy those coins, it is that simple, which is why we must avoid falling into that trap and not sell our coins to them.

Yeah actually this is an opportunity for other users to buy. we need a price reduction because it is the right time to re-buy. that's the pattern on the cryptocurrency market. when prices start climbing up then most users will surely make use of it to sell and then price back down. and that is another chance to repeat the pattern

They just want those who are new to the market be afraid of the price and think twice of holding their coins for a long time. If you see what is happening now, the price just plunge again and many are selling because they are afraid that the price will plunge more contributing to more dump in price. The whales may have started it but the retail traders are the one who always finish it and they are eaten by the whales. Whales will accumulate more and then later on dump again.

in my opinion it is a very natural thing when there is bad news and after that effect on the price of cryptocurrency which is in place of exchange according to me that have become very reasonable, it may be many new trader who is afraid to experience loss very much so he choose to securing the assets they own.

We don't need them but it is normal on crypto, panic selling is for the week and they really don't understand what to do. beginners deed.
Well if you really want to be successful here you don't need the word panic and just be cool.
Be patience and have the guts to hold.

The price crash is good as you have said and it is not new in cryptocurrency. It may only be prolonged in some cases as we currently have it. In this case, some people will lose by doing panic sale while some will make good gain by waiting till the end when another bull run will emerge.

So you support some scapegoats to feed the sharks. 
As per your statement it appears as if it is good to sell to small innocent investors at high prices when their is bull phase.  And when huge money of small investos is engaged in the market then big sharks should start playing their cunning role. 
They immediately start selling at high prices and as a result prices start falling even crashing.  And as suggested by you; now strong hands should buy; who are strong hands again those big sharks. 
I think it is not sympathetic statement.  It may be good for you if you are a big investor but not good for small people like me.

I agree, we really need price crashes and panic sell, and also it's part of the cryptocurrency, so it's really inevitable. We need it to earn, we can still earn without big crashes, but we can earn big if there's price crashes. I guess it's up to you if you'll take advantage of it even if it's hard. And also you can just buy when the price crashes and wait till the price rise again to earn profit.

Yeah you mean a kick off before going high in the sky just like the rockets flying high. As we all know it needs a countdown and usually the loudest countdown starts with 10 down to 1. So basically you can hear many rumors here that the countdown for market price kick off is almost there and one will going to regret if one will not going to invest now.

I agree with you, the market need some crashes to redistribute coin from the weak hand who panic sell at every price crashes to the strong hand who believe in what they are holding and know surely the market will bounce back after every crashes.

People who took out mortgage or took on leverage might go bankrupt due to the crashes. I daresay they won't like any crashes no matter how good it might be for the overall health of the market.