You’ll expect volatility if you’re an experienced crypto investor. Aspiring eCommerce entrepreneurs should join Amazon. It’s the price of admission for joining the fastest-growing retail industry.
That’s why it’s so important to understand how bitcoin works, and how to invest in other digital currencies such as Ethereum and ripple. In fact, the entire cryptocurrency market has fallen 30% from its high in December of last year.
When the market crashes there’s always another bubble to replace it. Whenever there is a downturn there is a buying opportunity. Ethereum remains the second most valuable cryptocurrency, but it trades 30 percent below its all-time high.
What caused The Crypto Market Crash?
There were two big events in the cryptocurrency space this year that rocked Bitcoin’s value down to a three-month low. At the time of writing, Bitcoin is valued at $43,168 (roughly Rs. 32.1 lakh). It fell nearly 7 percent in the last 24 hours.
The big slump occurred when the Federal Reserve indicated it could move up its timetable for raising interest rates. The US Federal Reserve will slow the growth of the US economy. It’s trying to control the economy so it doesn’t get out of control and cause another Great Recession.
Meanwhile, Kazakhstan, the country that accounts for 18% of Bitcoin’s network hash power, experienced a nationwide Internet shutdown, causing the Bitcoin hash rate to drop by 13.4 percent reflecting a sharp drop in value.
Ethereum had already been down from its recent high, so that was to be expected. Bitcoin’s volatility in the year 2018 is unprecedented, even by its own standards. With an 8.3 percent decline over the past 24 hours, the value of the cryptocurrency now rests at $7,500 after having started the year on a high.
The dip saw Ether’s performance improve marginally but still down by 6.8 percent in value over the past week. Ethereum blockchain has many meme tokens running on it that also experienced the effects of this crash in the market.
The cryptocurrency price tracker from Gadgets 360 reveals a bad day for the entire market. The only crypto assets to gain in value are the stable coins. Ethereum (ETH), Bitcoin Cash (BCH), Stellar Lumens (XLM), Tezos (XTZ), Zcash (ZEC), Tron (TRX), and Cosmos (ATOM) all saw increases in value.
People have made millions of dollars in just a few years by trading these coins and investing in them. Even the “not so serious” cryptocurrency called meme tokens also made huge growth in the last year and made their mark as well. Bitcoin’s value has dropped by over 7 percent over the past week, although it’s risen by more than 26 percent year-on-date.
What future holds for the Bitcoin investors?
Cryptocurrency is no stranger to volatility. Bitcoin hit highs just under $65,000 in mid-April, and then fell over 50% by mid-July due to several factors including news from Tesla and the Chinese government.
When October came around, the price had jumped back to a new high of over $66,000. The only problem with investing in Bitcoin is the volatility. It’s great that Bitcoin is a great store of value, but you might not be happy if you invested in it and then lost all of your money. A financial advisor named Anjali Jariwala says to only buy if you are comfortable having that money potentially go away.
But if you do decide to invest in crypto, keep in mind that your financial advisor recommends keeping just a small amount of your overall portfolio invested in risky investments like crypto.
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Cryptocurrency is volatile and will continue to be like that, even the meme tokens are unpredictable. The investors know exactly what its market behaviour is, yet it holds a lot of promise for the investors.
Meme tokens are the best example of being volatile and yet fetching great profits for their investors. They are community-based crypto assets and backed by loyal communities that guarantee their steadiness in the market.
Apart from that other altcoins also are holding a fairly stable position in the market even in this time of market slump, so one can say that there is still a lot of hope for the big coins to get back on the rising position again.