Is The Crypto Market About to Collapse?
The crypto market is amid dramatic swings, but it has been so volatile in the last few months that it may be starting to compress. Even so, the question remains: what will the market look like in the weeks and months ahead? Will it continue to lose steam, or can it pick up in the coming weeks?
When the market goes down, the people who say it’s going to rise are the ones who get rich. When the market goes up, the people who say it’s going to crash are the ones who get out. This has always been the case in markets, but not in the cryptocurrency market.
Nearly every day, new cryptos are being launched. It’s hard to keep up, but that’s the whole point of the Crypto world. The idea is to provide an ever-expanding platform of new investment opportunities for investors, not for “serious” investors. The more choices available, the more likely you are to invest in something that might not have a great future.
For cryptocurrencies, 2018 started promisingly with Bitcoin breaking its 2017 record of around $20,000 per coin. Since then, however, the price has dropped. Bitcoin is now trading at around $7,000, while Ethereum is down to $300. If the cryptocurrency market does not come back to life soon, it will fall into a bear market.
With the growing popularity of virtual currencies, the crypto market is expected to boom soon. Many experts believe that cryptocurrency could replace the world’s fiat money in the next decade. However, the cryptocurrency market is not stable since it is still overvalued and may overheat shortly.
This is not a profitable time to invest in the cryptocurrency market. Bitcoin has slumped over the last three months, reaching its lowest point in four years at around $6,500 at the end of August. Bitcoin, the largest cryptocurrency in the world, has fallen by over 60 percent in the past six months. Bitcoin is down by more than 70 percent since its all-time high in December of last year. The only major cryptocurrency that has seen a price rise is Ripple, which has up by more than 100 percent in the past six months.
The price of bitcoin is down nearly 30% today—and that’s just the latest in a series of recent losses that have the cryptocurrency community worried. This latest downturn has also led to renewed calls for the cryptocurrency to be classified as a security, which would require it to be approved for trading on regulated exchanges. But so far, regulators have shown no signs of doing so—and some industry observers even think the SEC may pursue a threat to shut down exchanges that don’t provide adequate protection to investors.
After a long downward trend for Bitcoin, the crypto community was finally starting to get nervous, worrying whether the worst might have happened. But another price drop didn’t come to pass, and market stability has been holding up. Some are still worried that the bear market could get worse—but not everyone. Some point to the fact that there are few signs of negative news in the market, while others are careful not to overreact. There are still plenty of regions where the crypto market is still developing, and things could change before too long. When it comes to cryptocurrencies, it’s worth taking nothing for granted.
There is a lot of excitement in the crypto-sphere right now, with some on the more extreme side of the community predicting the imminent downfall of Bitcoin, Ethereum, Ripple, Litecoin, and other high-profile cryptocurrencies. This isn’t to say that the crypto market won’t crash in the future, it’s just not the time for this crash to occur.
The cryptocurrency market is a roller coaster. From record heights to record lows in a matter of months. Most of the time, you have to have a microscope to catch a glimpse of it. It is the wild west of investment where the only rule is to stay unpredictable. Even the most experienced investors can’t tell you exactly when or how it’s going to crash.