After yesterday, there was a real bloodbath in the crypto market and the prices declined by up to 40%, it seems that the market for the Moment has calmed down.
The price of Bitcoin is currently moving along the 10,000-Dollar mark, with a market capitalization of 175 billion dollars. Within a month, the price of an all-time high, which was almost $ 20,000, to the current value. This ascent and descent is increasingly the subject of media coverage, the bursting of the “Now-is-the-Bitcoin-bubble”story talk.
The price for a Bitcoin was at the beginning of last year is still under $ 1,000. This corresponds to a tenfold increase in the price within a year. Although the current rate means a low level of Bitcoins since the flash-like increase in the price of November 2017, the development is still enormous and such chances of winning in any other financial market. Therefore, this occurred as a sudden price drop should be viewed from the bird’s-eye view, far away from the panic and Hype.
The total market capitalization has decreased since the 08.01.2018 by 830 billion dollars by now on a 466 billion dollars.
The current correction is actually strong, however is also important, the huge increase in the last year, and the enormous capital inflow to take account of many new investors. In mid-December 2017, the market capitalization of the crypto market amounted to nearly 220 billion dollars, 2 months later this had already grown by 4 times. Such a fast growth cannot be continued forever in the same extent.
The current correction seems to be under this point of view, only healthy and normal for the market. The big Hype and the huge-seeming chances of winning have attracted many investors and a lot of capital in the market flushed. That such a rapid rise, of course, is always to make the appropriate adjustments and setbacks, shows the current development.
Whether the actual cause in the Bitcoin Futures and the related possibility to speculate on a price drop, or in the Actions of large investors, to steer the market in a corresponding direction, is located, remains open. Also then, is, whether the currently ongoing negative coverage contributes a share of the price development.
Some sources also report that the upcoming new year in China could be a reason for the price decline. Because in China, the new year has a very great importance and many gifts bought, or home to travel be booked to the family, could, in theory, the money from crypto-currencies to be invested in Fiat, to celebrate the Chinese new year. Another theory suggests that the distributions of the bonuses of the banks to their employees and the associated withdrawal of capital from the market (in crypto-currency-linked capital is exchanged in Fiat and then to the employees paid out) could be a reason for the current Situation.
However, these are only unsubstantiated theories and theses. Only the next days and weeks will show in which direction the market is (will move after the Chinese new year).
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