Bitter truth behind the market crash

[babyshaun]

Taken together, these events may simply act as another reminder of the “volatility” of the cryptocurrency market, which saw bitcoin rise to a peak of $19,783 on December 17th. Bitcoin has gone through multiple crashes before: in spring 2011, in November 2013, and in January 2017. However, this current bubble comes against a new backdrop: a global tide of regulation against the inchoate cryptocurrency industry. On one hand, these regulations may be scaring bitcoin investors into selling their coins now before the full impact of regulation makes itself felt. On the other, it may also be threatening suspect exchanges such as BitConnect, with its own token declining in value by 46 percent between December 17th and January 15th — the day before it announced its closure.

[malbterxic]

    Absolutely wrong conclusions based on the fall of the market, now we are seeing a classic correction situation, there is nothing catastrophic in this.Normal projects are working on their products and preparing releases, a month or a half will start normal upward movement.
The fact that a lot of people have entered the crypto-currency market, not understanding what it is, aiming to get money quickly, does not indicate a close end.
Is it not enough of such people in the stock market?
It is at the expense of such hamsters that we earn on the growth of coins.

[fokinlipat]

The Crypto market is crashing...  Now BTC= 7400$ & Eth=400$

What happened to BTC?

1.Thousands of people came into the Crypto field and started buying in Dec/Jan. So the market hyped unbelievably.
80% of them have 0  technical knowledge about Cryptocurrencies.
90% of them does not believe in Bitcoin.
20% of them have absolutely no idea what a cryptocurrency is and how the market behaves.
70% of them just wanted some quick profit.

2.Some idiots bought and sold for quick money and dumped the market.
3.Some people got panic and started selling.
4.Whales saw this early and slowly sold part of their holdings. Now they are buying at low prices.

1) So you do not want new people to come to crypto  ? You want the money to be moving in between current investor ? In such a scenario, bitcoin prices will become stagnant. Mining is becoming difficult with time and thus become impractical in such a case.

2) If bitcoin prices are controlled by action of some people only (and those who are new investors) , even god cannot save us.

3) That is natural and will always happen.

4) I agree with this past. The huge price increase or drop you see is because of a few people (big investors) and not the common people joining in mass.

[ahmad21]

I am afraid but its true and this is what makes it look as if the crash is imminent. There are already a lot of people who have entered into the market just to double their money. But however all this led to market crash when people began with profit booking. Now they are trading in the bearish maket. I could have said this as a normal correction but even the TA experts are unable to predict anything about the market. With every resistance that btc breaks there is a new resistence which btc fails to break.

[juiceannabel]

The truth behind this crash is related to the issue about regulations too.
not mention the fud that spread causing bitcoin and crypto holders to sell their coins.

[eduvacation.net]

The Crypto market is crashing...  Now BTC= 7400$ & Eth=400$

What happened to BTC?

1.Thousands of people came into the Crypto field and started buying in Dec/Jan. So the market hyped unbelievably.
80% of them have 0  technical knowledge about Cryptocurrencies.
90% of them does not believe in Bitcoin.
20% of them have absolutely no idea what a cryptocurrency is and how the market behaves.
70% of them just wanted some quick profit.

2.Some idiots bought and sold for quick money and dumped the market.
3.Some people got panic and started selling.
4.Whales saw this early and slowly sold part of their holdings. Now they are buying at low prices.

What happened to Eth and Ethereum tokens?

1.BTC going down = Eth going down
2.People with 0 crypto knowledge started investing in ICO's.
3.People with 0 crypto knowledge started doing bounties.
(Those are the spammers in Bitcointalk)
4.That two kind of people started dumping ICO's for quick earnings
5.Scam ICO's and useless ICO's came in to play.
6.Because of the ICO flood, ICO's became less profitable.
7. So some ICO investors lost their faith.
So Eth and most of its tokens crashed.

What happened to Other coins?

BTC going down = Every other coin going down

What will happen next?

1.Whales who sold for higher prices will buy slowly at low prices and will become 1.5* rich.
2.Some people will leave the Crypto market.
3.Believers will HODL.
4.The market will slowly recover.

Interesting topics, I see a nice cycle of statements and some of the data you gave above. The cycle is very good and even can be said normal with such a cycle then the market will recover and crypto will regain investor confidence.

[loggin]

It is true that a lot of new investors joined due to hype and they usually panic sell. But we need new investors for bitcoins to grow, it is just that these investors should be made aware about the volatility in prices before investing. They will behave responsibly then.

[tot-o]

What will happen next? Lets repeat again the cycle isn't it the best option? People withdraw theit money due to panic, but as part of us who are still into Bitcoin let us invite people to come to exchange those who leave, thats another part of everyone that is here. I believe that when we invite more people the market will recover soon.

[TrumpD]

You have very solid points to your claim. These are all really possible factors, but not actually factual due to you putting percent values to them, but the idea yes you are correct. Don't forget the FUD created by the banks, financial institutions and financial moguls who helped spread the panic.

[Crypto Girl]

The observation might be correct but it's not a bitter truth behind the market crash, the real cause is the high volatility and the FUD and some "bad news" spread by the government authorities and some financial institutions that did not want the Bitcoin to alter their way of financial transactions.

[dado7]

You actually summed that up pretty good. Nothing to contribute here, but I really have to say..... Well done!

[flippener]

Taken together, these events may simply act as another reminder of the “volatility” of the cryptocurrency market, which saw bitcoin rise to a peak of $19,783 on December 17th. Bitcoin has gone through multiple crashes before: in spring 2011, in November 2013, and in January 2017. However, this current bubble comes against a new backdrop: a global tide of regulation against the inchoate cryptocurrency industry. On one hand, these regulations may be scaring bitcoin investors into selling their coins now before the full impact of regulation makes itself felt. On the other, it may also be threatening suspect exchanges such as BitConnect, with its own token declining in value by 46 percent between December 17th and January 15th — the day before it announced its closure.

Well said - I think that's it in a nutshell. This would be a crash in any other asset, but in Bitcoin it's just another day.

[BrewMaster]

this may sound weird but i still think a big part of the current bitcoin drop has been because of all the altcoin dumps so far, not all of it though.
i mean if you think about it, something like 80-90% of the altcoins either don't have a fiat market at all or only has it in small exchanges like Yobit which nobody ever uses. so if someone wanted to dump them and get back to fiat they have to dump them for bitcoin then sell their bitcoin to get fiat. that is a lot of bitcoins being sold by newbies!

[bitfocus]

I agree with you completely, especially that Zero Crypto knowledge peoples part.

[Dudeperfect]

To be honest, I believe that we need mass awareness in terms of almost every aspect to deal with such chaotic situation. It was big whales who were playing in the market with their capital and newbies were burning their own hands by trading (entry/exit) at wrong points of time. Bitcoin/crypto market is still comparatively new and it will take much time to see high average awareness level among the users.

[Al-e_x]

good prediction, I think idiots always make the market crash, they are idiots and selfish, they only think of themselves, and do not think about how the impact after he sells bitcoin. but does Kobayashi who has sold 3000000 BTC is an idiot?

yes, the correction conditions make everyone panic, especially for beginners, so the biggest factor affecting bitcoin values is like you saying :
80% of them have 0 technical knowledge about Cryptocurrencies.
90% of them does not believe in Bitcoin.
70% of them just wanted some quick profit.
and it is appropriate.

[darkangel11]

That's not a bitter truth but rather a dumb and obvious one. People who invested back in November-Dec who believed that the market would be able to hold such an artificial pricing are the ones who are at fault of the crash, given that they added so much weight in to an already heavy and unstable pricing. No wonder whales were so happy during that run since they raked in a huge profit for themselves, dumping on the overly-optimistic ones who don't know anything about the markets but still decided to give it a go. Right now, the prices are in a slump, but we're still in a good shape considering that we are @ sub-$1000 only 2 years ago.

They didn't know the pricing is artificially inflated. If you look at the adoption curve It's difficult to say at what point we are now and it's especially difficult for a newcomer. Many people don't deal with stocks and are not interested in TA, charts and all that stuff. They see that the price was exploding before and now it has exploded even more, does that mean we used to be in the adopters stage and now are getting into the "early majority"?
There may be a time when this jump happens again, but this time it won't even reach half of the slope during the correction, it will keep going up to 50K USD and beyond.
I'm not a dreamer here, look at the logarithmic price chart.

[BChydro]

The rally in bitcoin made headlines all over the world and it attracted many people to invest into bitcoin and some have made a fortune in this market and some have lost their money when they never anticipated a correction, plan on holding the coins for some more time and you will benefit in it, but one thing i want to see is alt coin rally and i am expecting all the alt coins to rise soon.

[IsuruMaduranga]

Let me fix your last paragraph for you

What will happen next?

1. I have no idea but I guess whales will buy up coins at low prices to make 1.5x profits (I just made this number up)
2. Some people will leave the Crypto market (There are always people leaving and joining the market at any given time)
3. Believers will HODL. (And either gain or lose money)
4. I have no idea how the market will look like in the future but I hope it will slowly recover


If you can say with 100% certainty what the market looks like in the future you would be the richest man on the planet. The hard truth? The market is unpredictable and its impossible to know what will happen in the future

Please read again what i have said.

I haven't done a price prediction or a market analysis in the post. What i have said is about Crypto commmunity and how they behave in my experience.

[homey108]

There is a very good chance that it could blow right through 6k and keep going to the 2k area.  This has proven to be an extended downturn.  We might see another repeat of the 2013-2015 crash and burn.