MOSCOW, December 23 - RIA Novosti, Natalia Dembinskaya. The most expensive and popular cryptocurrency in the world, bitcoin, with a capitalization of $232 billion, has entered a steep peak. After hitting $20,000, Bitcoin lost 45 percent of its value in five days and continues to fall. What are the reasons for such a powerful collapse, who are the "whales" that have taken over the market, like "hamsters" who bought coins "on the highs", succumbed to panic and what the future holds for cryptocurrency - in the material of RIA Novosti.
Record growth
At the auction on December 17, the bitcoin exchange rate exceeded $20,000, and its capitalization reached $335 billion. Even the most optimistic analysts did not expect such pressure from the market leader - it was assumed that by the end of the year this currency would give a maximum of 10 thousand dollars.
However, the cryptocurrency failed to keep the newly taken height and immediately began to roll down. According to CoinMarketCap, on Friday, Bitcoin was trading at $11.8 thousand: minus 28 percent of the value in the last 24 hours alone.
Last week, trading in bitcoin futures began - according to market participants, they started quite successfully. Chicago-based Cboe Global Markets even experienced an overabundance of traffic on its first day, causing it to suspend trading twice.
However, experts warned that as long as there is confidence among speculators and their mood is positive, prices will rise. However, the slightest change in mood is fraught with a fall.
During 2012-2017, the cryptocurrency grew by 141,500 percent, and the capitalization became comparable to the cost of General Electric.
"Whales" recorded a profit
"Such growth rates of the asset, supported mainly by rush demand, should alert investors," said Oleg Safonov, Managing Director of BCS Ultima.
And investors seem to be on their guard, or rather, hastened to take profits. This is what caused a sharp reduction in the price of the most popular cryptocurrency in the world, observers are sure, noting that up to 90 percent of all cryptocurrency is concentrated in the hands of a narrow circle of people.
"The main reason for the collapse is that big investors– whales – take profits and exit bitcoin,” said Vadim Valeev, CEO CryptInvest.biz platforms.
Who are the "whales"? This, for example, large funds or individuals who own large amounts of bitcoin. There are about a thousand of them in total and they own up to 40 percent of the entire digital asset market, which they successfully manipulate. Given that just since the beginning of the year, bitcoin has risen in price by 15 times, having sold even a small fraction of their huge fortune, they can drastically collapse the rate.
As the price of bitcoin rises (and most observers expect a rebound of this cryptocurrency after new year holidays) "whales" have more and more opportunities for price maneuvers associated with the sale of a large number of these coins.
Hamsters lost money
A collapse for the "whales" is a controlled event. According to analysts, this is a normal reaction at the end of the year. With serious funds - tens and hundreds of millions of dollars - big players"pump" the course when they need it, and to the required levels. When demand starts to go off scale, they begin to exit the cryptocurrency. As a result, the victims are "hamsters" - small and inexperienced investors who bought bitcoin "on the highs" (high prices). They react to any panic and, not being the owners of big money, suffer the most serious losses.
Panic-stricken "hamsters" immediately sell the currency on the correction and negative news. Alarmists, on the contrary, play into the hands of "whales": in the professional slang of traders, this is called a "haircut". When the “hamsters” try to throw off digital assets, the heavyweights pick them up “at the bottom”, and then heat up the course again: they launch positive news and again sell at peak values.
“Those who bought bitcoins “on the highs” are now panic-stricken: they did not expect such a collapse,” Valeev states.
Such investors end up out of business. All that remains for them is to gradually drop out of the game, because they have less and less funds for trading.
Investors who relied exclusively on bitcoins suffered the greatest losses. Those who diversified their portfolios were more fortunate: for example, in addition to bitcoins, they also had " blue chips"cryptocurrency market, which have some assets, companies and technologies under them - for example, Ripple and Etherium.
The collapse is not over
As observers assure, the current collapse was predictable: it was expected by December 25, since the "whales" usually become more active before the New Year. However, it happened a little earlier.
Thus, the depth of the fall of the cryptocurrency has not yet been exhausted, it will fall further, and it is difficult to predict to what levels. “It is possible to fall to support levels of ten and nine thousand dollars, but it is possible that even lower,” Valeev suggests.
Investment director at the CryptoLife fund Mansur Huseynov believes that bitcoin can fall in price up to 7.5 thousand dollars. He notes that in the past few months, growth has been too fast and the market needs a correction.
However, according to observers, already in January-February the situation will stabilize and the bitcoin rate will go up again. Traders do not exclude that by the spring they will give 25 thousand, and even 40 thousand dollars per coin.
Be that as it may, the powerful collapse of the cryptocurrency once again confirms its speculative essence - it is close to the nature of the real estate bubble. How long-term and dramatic the fall will be in the end and whether there will be a rebound - the next month will show.
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The collapse of bitcoin was included in the list of “shocking forecasts” Saxo Bank for 2018
Saxo Bank experts have published the traditional list of provocative and shocking forecasts for 2018, including, among other things, the collapse of bitcoin.
In 2018 world economy a wave of shocks awaits, which may include the weakening of the independence and control of the American and Japanese central banks, the collapse of the S&P 500 stock index, political tensions in the European Union and the loss of investor interest in bitcoin.
The Saxo Bank Forecast is a list of anticipated events, the actual probability of which should be considered at the level of 10% or higher.
“We believe that the suspiciously low volatility of 2017 will not be repeated. The economy and stock markets seemed to be stocking up on energy for the turmoil of 2018. Therefore, some of our forecasts directly point to the threat that the accumulated excessive financial “complacency” will lead to the fact that the “volatility bubble” will burst, ”the document says.
One of the main events of the next year, according to Saxo Bank, will be the weakening of the independence of the US Federal Reserve System (FRS).
“Historically, the degree of independence of the US Federal Reserve has been determined by the needs and policies of the federal government. It is expected to weaken significantly in 2018, as Washington plans to limit state revenues before the threat of a market collapse. debt obligations", the experts suggest.
The situation will be exacerbated by a lack of fiscal discipline and a huge budget deficit as a result of Republican tax cuts, which will only get worse as the US recession sets in.
The collapse of bitcoin
As Saxo Bank predicts, the policy of Russia and China towards cryptocurrencies will eventually lead to the collapse of bitcoin, although before that it will have to wait for a significant increase.
“Throughout most of 2018, the price of bitcoin will continue to rise, and grow rapidly, but Russia and China, with their actions, will eventually cause it to collapse,” analysts say.
Saxo Bank predicts that at some point in 2018, the price of bitcoin will exceed $60,000, and the market capitalization of the first cryptocurrency will be more than $1 trillion.
“However, very soon the phenomenon called “bitcoin” will have the ground pulled out from under its feet: Russia and China are quickly withdrawing from the game and even banning unauthorized cryptocurrencies. Russia is becoming an official player in the field of cryptocurrencies to influence the development of protocols and is shifting the focus away from bitcoin in order to keep Russian capital in the country. China is doing the same,” the forecast says.
As a result, according to experts, by the beginning of 2019, bitcoin is expected to plummet to $1,000.
Petroyuan, the fall of the S&P 500 and “household” quarrels in the EU
Also on the list of shocking forecasts for Saxo Bank was the start of Chinese yuan oil contracts on the Shanghai International Energy Exchange, a move that would have huge geopolitical and financial implications.
The S&P 500 is also projected to fall akin to the collapse of 1987, and it will be associated with a reduction in the US Fed's asset balance and the ECB's asset purchases from January 1.
Saxo Bank believes that in 2018 diplomatic tensions between Western and Eastern Europe due to expat issues, migrant quotas and democratic values, and at the same time, next year we will witness an unexpected rebirth of South Africa, which will lead to the political and economic prosperity of the region.
Another prediction concerns women in business: according to Saxo Bank, they will rapidly seize power in corporations. Already, women often have more high education, and if today the fair sex dominates 32 Fortune 500 companies, in 2018 there will be twice as many such corporations.
“We can say with certainty that if any of our predictions come true in 2018, the world will be in a completely new situation,” the forecast says.
Recall exactly a year ago in the list of "provocative forecasts" Saxo Bank for 2017. However, even then, experts believed that the cryptocurrency would rise in price to a maximum of $2,100.
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Less than two months ago, bitcoin took off like a meteorite, reaching $20,000, but the joy of crypto investors did not last long. The cost of bitcoin dropped sharply during the day - the price of the most famous cryptocurrency in the world fell by 25%. If on the night of January 16, bitcoin was sold for $13,000, then at the time of writing, it is offered for a little more than $10,000 per unit.
It is reported that other cryptocurrencies also showed a drop in their rate - for example, the Ethereum cryptocurrency, created by Vitalik Buterin, fell by 31% and is trading at a price of about $923.
fatal night
Experts believe that there may be several reasons for such a massive fall in the price of cryptocurrencies. One of the main reasons for the collapse of the market is a sudden change in the mood of market participants associated with alarming reports from China and South Korea, which relate to the tightening of legislation in this area.
Last week it became known that Seoul is preparing a bill that will ban the trading of cryptocurrencies on special exchanges.
The South Korean Minister of Justice expressed concern over the excessive popularity of bitcoin, which could lead to the development of addiction among inexperienced investors, similar to the passion for gambling. In addition, the government of the country fears that the owners of cryptocurrencies will evade paying taxes.
This version correlates with the trends of the last year – in 2017, there was a real boom in bitcoin, largely caused by talk that many countries will legalize cryptocurrencies. Not surprisingly, such disappointing news from Korea was followed by a depreciation.
Diamond Guard positioning director Alexander Mamaev confirmed to Gazeta.Ru that the “December rally”, when bitcoin took record after record, was fueled by the loyal attitude of the US regulatory authorities, which allowed trading in cryptocurrency futures, as well as the excitement among new investors.
According to Mamaev, it is possible that the fall in the rate is also caused by the disappointment of investors who invested in bitcoin for the sake of gaining lightning-fast profits, but did not get the desired result. “Having invested in December and January and not having received the expected profit, they were disappointed and left digital assets,” the source said to Gazeta.Ru.
Chairman of the European Service for securities and financial markets Steven Maijur told Bloomberg, what
crypto investors should be prepared to lose “all their money” invested in bitcoin.
According to Maijur, the volatility of bitcoin is so high that it cannot be used as a full-fledged currency.
Speaking at the Gaidar Forum at the RANEPA, Russian Prime Minister Dmitry Medvedev admitted that cryptocurrencies could, in principle, disappear.
"We see that there are different approaches to cryptocurrencies, for example - from prohibitive to absolutely liberal. And everyone today is worried about the question of where is the limit of this cryptocurrency race? In general, maybe this is a dead end branch of the cyber revolution? Medvedev said.
What to expect in the future
Director Russian Association cryptocurrencies and blockchain (RAKIB) Arseniy Shcheltsin noted that the fall in the bitcoin rate is a common decline in activity that has been repeated for more than a year - a similar trend could be traced in the past and the year before.
“You can’t call it a bottom,” Shcheltsin said.
“And those people who call this [fall] the bottom have not read the history of cryptocurrencies and are drawing extremely hasty conclusions.”
Alexander Mamaev of the Diamond Group warns that the further development of the situation could be even more detrimental: the volume of transactions in cryptocurrencies has not yet reached a scale comparable to pre-Christmas, and the drawdown has already turned out to be deeper.
However, it is not worth writing off cryptocurrencies, and significant events may occur in 2018. “Let's start with the fact that many countries, unlike China and South Korea, on the contrary, legalize and create emphatically soft conditions for crypto projects, for example, Belarus or Armenia,” the expert said.
The head of the Kibers.com cryptocurrency cloud wallet, Vitaly Yagodkin, explained to Gazeta.Ru that the current rollback in the market is quite natural, since the rate was overly inflated during speculation at the end of December.
“After such a rise, a fall and leveling off is always expected. There is no need to panic, this has already happened in history, for traders and those who want to earn this is the best time to enter and buy on the exchanges, ”said Yagodkin.
Rodion Popkov, COO of the VISO payment system for crypto and fiat payments, said that an analysis of the growth and fall dynamics of bitcoin shows the active work of speculative players in the market. At the same time, the trend towards growing interest in cryptocurrencies continues in the world, which should be reflected in the smooth growth of the exchange rate.
“The past two rallies on the growth of the rate were just provided by speculators. If you pay attention, then a rollback, or what is now called a sharp drop, always occurs to levels significantly higher than the previous ones, which just corresponds to the general dynamics, ”commented the expert.
Atlantico: As The Telegraph writes about the current Bitcoin market frenzy, “if this is a bubble, we are now dealing with a manic phase before the crash.” With bitcoin's volatile price breaking $11,000 in a week, how risky is this currency, which Goldman Sachs now views as a "commodity"?
Philip Crevel: In 2016, the Financial Markets Authority noted that 90% of depositors who entered the financial market ended up losing money, and in some cases very significant ones. It is likely that the same will happen with bitcoin, a cryptocurrency whose rate is far from stable and predictable. Is it possible to imagine that the value of the euro will rise tenfold in a few months? Currency is primarily a standard, an instrument of exchange and storage, and not a speculative commodity.
By the way, it was for this reason that in 1976 the currencies were released from the dollar peg, and a floating rate was introduced.
At the same time, this virtual currency, which was created in 2009 by a group of unknown specialists under the pseudonym Satoshi Nakamoto, is characterized by chaotic fluctuations, which is especially noticeable against the backdrop of the recent rise in its rate. Such a trend should be based on rational economic considerations like GDP growth, population growth, productivity growth, trade links… As for bitcoin, transparency is built into its structure, but this does not apply to its creators.
Bitcoin is a cryptocurrency that relies on blockchain technology and is accompanied by payment system p2p. Everything works without central control, in a decentralized way thanks to the consensus of all network nodes. The issuance of bitcoins (the ceiling is set at 21 million) is carried out by users who provide their computing power to verify, record and encrypt the operation on blockchains. Such activity is called "mining", requires significant computing power and energy costs. In 2015, bitcoin networks used 43,000 times more electricity than the 500 most powerful operating computers in the world, Reuters reported. In 2020, it may need 14,000 MW, which is half the electricity consumption in New England in the US or the whole of Denmark. Given the exponential growth in the cost of production, the creators of bitcoins are united in "farms". In 2016, 95% of activity was accounted for by a dozen cooperatives. China slows down the use of bitcoin, but has become a specialist in its production (72% of all mining). It was decided to develop this area of activity in Russia as well.
In the future, bitcoin will in any case need to change the algorithm in order to reduce energy costs. The lack of transparency in terms of issuance is another weakness of the virtual currency. With regard to fraud, all transactions are verified by network nodes and recorded in a public ledger, which is considered impossible to falsify (blockchain principle).
If we return to the risks associated with bitcoin, taking into account current exchange rate, they are very high. The bubble can burst at any moment. Those who are not afraid to take risks need to be ready at any time to sell cryptocurrency as quickly as possible.
Jean Tirol, French Nobel Laureate in Economics, Thinks Bitcoin is a Financial Bubble pure water. Most agree with this point of view. What then is the reason for the current growth? Is it known who invests in bitcoin?
— The fluctuations in the price of bitcoin and its recent growth give it more visibility and push some financial institutions to form new types of deposits with an emphasis on their profitability. Bitcoin is being used by an increasing number of economic actors. So, in 2017, more than 100,000 sites accept it as a means of payment, including PayPal, WordPress and the travel agency Expedia. The Red Cross and Greenpeace also accept bitcoin donations. Bitcoins can even be obtained in physical form from 1,778 distributors in several countries. As for Europe, there are as many as 15 in the Netherlands. Bitcoins are of interest to merchants who are interested in the security of payment. In addition, associated costs, which depend on the number of ongoing transactions, are entirely the responsibility of the buyer.
In early November, the CME Group announced the imminent implementation of fixed-term contracts in bitcoins. Some believe that their appearance strengthens the legitimacy of bitcoins, while others see this as a confirmation of the highly speculative nature of the cryptocurrency.
Context
Cryptocurrency will allow to revive the gold standard system
Le Monde 26.11.2017Will the “bubble” of raising capital with the help of cryptocurrencies burst?
InoSMI 07/30/2017Bitcoin banned in Russia
The Wall Street Journal 01/28/2014Kazakhstan is eyeing cryptocurrencies
EurasiaNet 06.09.2016 Businesses, and especially startups, use cryptocurrencies to raise funds. Such operations called ICO (Initial Coin Offering) rely on the issuance of digital assets (tokens, tokens) that can be exchanged for cryptocurrency in the project launch phase. The rarity of tokens gives hope for a profit from resale, in connection with which investors are always in the forefront. Unlike classic shares, tokens do not symbolize part of the enterprise, but part of the issued virtual currency. In 2016, ICOs raised 200 million euros. This year, some say the figure is 6 billion, which is more than ten years of crowdfunding.The European Securities Market Supervisory Authority (ESMA) considers the growth of ICOs real threat, especially for ordinary savers. The European Office considers such a system to be unregulated, unstable, non-transparent and technically unreliable. Its recent press release claims that "ICOs are extremely risky and highly speculative investments" and points to "the risk of losing your investment entirely." “Many of these currencies and tokens have no immediate value other than (…) their use to access a service or product,” ESMA continues, demanding (following Swiss and American regulators) tighter controls on cryptocurrencies. A number of countries have recently taken action to restrict or ban the use of Bitcoin. So, China introduced a ban on transactions in bitcoins. South Korea has taken action to discourage fundraising in exchange for tokens. Algeria is going to ban all virtual currencies. The French authorities can also offer a legal framework for the use of these currencies. The French financial authority recently urged investors to be cautious amid online proposals to invest in bitcoin with incredible returns (500%, as some announcements claim). It is noted that this virtual currency does not have official exchange rate, and that the exchange takes place on the market without any regulation. The strongest volatility of bitcoin is also rightly indicated. As for ICOs, they carry “all the risks associated with virtual currencies: loss of capital, volatility of the exchange rate, illiquidity, lack of clear and detailed information about the investment, lack of regulation, risk of fraud, risk of project failure or failure.”
Initially, Bitcoin was aimed at distancing itself from traditional financial circles after the 2008 global recession. His digital and worldwide nature has given him some success, both in the legal realm and in mafia activities. Bitcoin resembles, rather, "tulip mania", rather than a currency standard, and may soon lose credibility. The 2015 CIA State of the World 30 Years Report specifically mentioned the risk that a network like Facebook could issue its own currency. The destabilizing consequences of such a step were recognized as so dangerous that it was proposed to ban such emission on the move.
— Are there any precedents for such a stock take-off of an asset, which so many players treated with disdain? And are there examples to the contrary, where derisive assets ended up establishing themselves in the market?
— Yes, tulip bulbs in 1637. The first speculative crisis of the modern era, "tulip mania", flared up in Holland, which was then famous for trade, freedom of religion and speech, and was able to achieve real prosperity. Her the economic growth was largely associated with maritime companies (the Dutch East India Company and the Dutch West India Company), which covered the territory from America to West Africa and India. As a result of the trade exchange, tulips grown in the Ottoman Empire ended up in Holland. The Dutch were just crazy about this flower, especially varieties with brindle petals. They were the hardest to grow because they had to be infected with the virus first. The tulips were grown for almost ten months, planted in autumn and harvested from June to September. Tulip lovers bought them in advance, for example, in July of one year for June of the next. These contracts have resulted in new financial products. So, a Dutchman bought a bulb for 100 guilders in July, knowing that he could resell it for 200 a year later. In addition, it was possible to purchase a part of the bulb, as today is part of the action. Against the backdrop of growing demand, manufacturers quickly raised prices. The already mentioned enrichment schemes only contributed to the rise in prices. The appearance of gold from Indian companies led to inflation, which made it difficult to assess the value of things. For several years, the price of the bulb has increased by more than 30 times. In 1635, 100,000 guilders were paid for 40 bulbs (about 25,000 euros today). The growth of options led to the fact that the number of orders many times exceeded real demand, especially since the rise in prices has limited the number of potential buyers. Many bought tulips at crazy prices, unable to resell them, which bankrupted them.
The speculative frenzy has spawned many other crises. Railways, the Panama Canal, land, real estate and, of course, the Internet in 2000 - all this created the basis for speculative bubbles.
At the same time, it happens that the sources of these bubbles create the conditions for normal business a few years after the collapse, but there are far fewer such examples than scandals.
The materials of InoSMI contain only assessments of foreign media and do not reflect the position of the editors of InoSMI.
Bitcoin has been falling since mid-December 2017 – January 2018. Along with it, other altcoins are also falling. Panic is growing among cryptocurrency holders, people are losing money. Why bitcoin fell in price and what to do in this case, we'll talk today.
You can always find up-to-date information and fresh reports regarding new events on the crypto market in the ““ section.
Reasons for the fall of bitcoin
Today's fall in the BTC rate illustrates how the laws of the market work. The price of an asset falls when the number of people willing to sell exceeds the number of people willing to buy. How could this happen?
To enter the market, simply register on the exchange. After the boom in the popularity of cryptocurrencies in 2017, many non-professional investors entered the market.
Seeing the rapid demand, crypto exchange players decided to scalp the market. After waiting for the demand to warm up the price to the limit, they sold their cryptocurrency to those in need. As a result of the increased supply, bitcoin fell, and the players took profits.
Bitcoin and Bitcoin Cash
December 2013
The course recovered after the April collapse. At this time, regulators began to look closely at cryptocurrencies and show their favor. New investors came to the market, exchanges simplified the process of acquiring cryptocurrencies as much as possible, which caused a new rapid rise in the rate. An inevitable correction followed.
Another speculative bubble burst and bitcoin crashed again. The cryptocurrency began to rise after the fall, but in February-March, the Mt.Gox exchange briefly suspended servicing BTC accounts, due to the division of the Bitcoin transaction log into two independent branches. This event is associated with the subsequent decline of bitcoin until the restoration of the previous price. 
The event seriously damaged the reputation of cryptocurrencies among the general public. People were in no hurry to invest in it, which led to protracted stagnation. For three years, the price of bitcoin has remained virtually unchanged.
July 2017
Since the beginning of the year, the rate has been growing rapidly, and by June it reached $3,000. Then the rate of bitcoin fell sharply to $1800. The popularity of cryptocurrencies grew, there were problems with scalability and transaction processing, which we talked about.
A fork appeared in August. He slightly spoiled the course of the original coin, but did not cause much harm. Forks are a dangerous phenomenon. If this happens often, bitcoin will fall apart into many coins with a penny value. 
By September, the coin was already worth $5,000. Suddenly, China bans ICOs, which gives rise to rumors about a complete ban on the use of cryptocurrencies in the country. These events caused the collapse of the exchange rate in half.
January 2018
The created negative news background spurred the beginning of a bearish trend in the market. The massive dumping of negative news led to an oversupply in the market, which caused the price of BTC to fall. Analysts and experienced asset holders predicted the beginning of the market growth in the spring of 2018. 
March 2018
The network has news about the hacking of the Binance exchange. As it turned out later, the trading bot working with the Binance API was hacked. Because of this, the accounts of traders working with this software began to acquire the VIA coin cryptocurrency, strongly pumping its rate and allowing hackers to profit on pre-placed VIA orders. Also, the SEC commission began to carefully monitor projects, without real releases (this applies to many altcoins).
June 2018
- Coinrail exchange hack - hackers stole over $40 million.
- There is also information that the dump is carried out intentionally before the release of the new Antminer S11 mining equipment (at this time, large players are purchasing on the market).
- In addition to all this, the SEC commission began checking several large exchanges due to their suspicion of manipulating the BTC rate.
John McAfee urged on his Twitter not to panic, saying that now good time to buy coins, not to panic.
July-August 2018
The main fall of the market was the postponement of the decision of the US Securities Commissions (SEC) regarding Bitcoin-ETF until September 30th. Many investors panicked and began withdrawing money from the market. The rate of many altcoins dipped to last year's values. Various MLM networkers call the market situation a “cryptocurrency restart”.
November 2018
The sharp collapse of the market on November 14th. Closing of long positions on BitMex and a sharp decrease in the capitalization of the cryptocurrency market by as much as 20 billion dollars. Mining on old AntMiner S9 devices becomes unprofitable for many, and the shipment of new models of AntMiner S15 and T15 asics is scheduled only for the end of December 2018. 
However, experienced players remain positive and continue to re-buy, while many newcomers who entered during last year get out of their positions in fiat. Of particular interest is the situation with the fall stock markets and oil prices. During 2019, a cryptocurrency revolution is possible in the world, which so far many do not take seriously.
We continue to monitor the situation.
What to do when bitcoin falls
- Do not panic and do not sell cryptocurrency. By doing this, you are guaranteed to remain at a loss. The likelihood that the rate will rise again is quite high. As practice shows, bitcoin rose even after a 70% depreciation. You just need to wait.
- It is recommended to keep several cryptocurrencies in a portfolio. Some of them may begin to grow rapidly. More types of coins increase the likelihood of making a profit.
- 30% of your assets must be Bitcoin. It is a universal cryptocurrency, like the dollar in the world of fiat money. You can always buy any cryptocurrency with bitcoin. If you see that some crypto has dipped significantly in the course, you should be able to buy it at a falling rate in order to sell it when it grows in price.
- When you see a rapid rise in the rate several times, do not try to sell everything. It is recommended to sell up to 70%. This is enough to recoup the investment and make a profit. The remaining 30% will depreciate if bitcoin falls. You will not lose anything, because you have already withdrawn the profit, but you will have the opportunity to get even more profit if the rate continues to rise.
Having studied the history of falls, a pattern can be distinguished: bitcoin began to fall every time after a rapid speculative growth, which is a consequence of the laws of the market, combined with negative events in the field of cryptocurrencies. For example, after the bankruptcy of exchanges or the aggressive behavior of regulators.
Having fallen, bitcoin has always risen and reached even greater heights. Sometimes it took months, and sometimes even weeks. We hope that our explanations of why bitcoin fell in price and recommendations on how to deal with cryptocurrency collapses will help you avoid mistakes and save your money.
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