“Not always going to the MOON”
For many cryptocurrencies only means investments; therefore, when you see bitcoin lowering its price in the market, it is a Big Deal and a little chaotic for many. Those who invest begin to feel anxious to sell because Bitcoin may collapse at any time and don't want to lose everything. There are also those who are always trading and seem to understand the market better and believe this is just another bear market, and instead of panicking, many decide it's time to buy.
Everyone has heard the most popular cryptocurrency out there; Bitcoin (BTC), has recently been decreasing its value in the market. Perfect timing for those who are still not in crypto or crypto skeptics to say: this was obviously going to happen, thank god I didn't invest, It's a scam and much more. People seem to forget that this does not only occur in the crypto market but regular stock markets as well; prices won't always be at the MOON. We might see a new phase of BTC entering the Bear Market because of all these price fluctuations in cryptocurrencies.
“Stock prices move up and down every minute due to fluctuations in supply and demand. If more people want to buy a particular stock, its market price will increase. Conversely, if more people want to sell a stock, its price will fall. The same logic works for crypto.”
Why do prices drop?
“Negative news will normally cause individuals to sell stocks. Bad earnings reports, poor corporate governance, economic and political uncertainty, as well as unexpected, unfortunate occurrences will translate to selling pressure and a decrease in stock price.”
“…it's difficult, if not impossible, to capitalize on news. The impact of new information on a stock depends on how unexpected the news is. This is because the market is always building future expectations into prices.”
There are different reasons online about the fall in the price of BTC. Some believe that sudden BTC sell-off; others say the Ponzi Scheme of PlusToken. Reasons also point at allegations from the U.S President, Donald Trump, and his comments against BTC on his Twitter account might have something to do with it.
The internet speculates a lot. You may believe the reasons for this BTC drop has to do with significant market moves, Ponzi Schemes, government allegations, or base it on trader statistics.
Nonetheless, if you are a holder don’t panic, don’t sell!
By: Carolina Pérez