If you’re wondering why cryptocurrency prices are falling today, you’re not alone. Prices for Bitcoin, Ethereum, and other major coins have been dropping since early 2018, and there’s no clear end in sight. So what’s causing this crypto price crash?
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Reasons for the Drop
Cryptocurrencies have been in a downtrend for the past few days. There are a few reasons for this. One reason is that the market is still trying to digest the news from China. The other reason is that the market is overbought and due for a correction.
On September 4th, China’s central bank announced that it was launching a crackdown on cryptocurrencies. The announcement sent the prices of Bitcoin and other digital currencies tumbling.
China has been a major player in the cryptocurrency market, and the news of a crackdown sent shockwaves through the industry. The Chinese government has long been cautious of cryptocurrencies, and this latest announcement is seen as a sign that Beijing is stepping up its efforts to regulate the market.
The exact details of the crackdown are still unclear, but it appears that the Chinese government is targeting exchanges and initial coin offerings (ICOs). This is likely to discouraged investment in cryptocurrencies, and could lead to more countries taking similar actions.
Mt. Gox trustee sell-off
On March 7th, 2018, Mt. Gox, once the world’s largest Bitcoin exchange, announced that it had sold approximately 35,841 BTC for $400 million dollars. The sale was made in an effort to repay Mt. Gox’s creditors.
The Mt. Gox trustee has been gradually selling off Bitcoin and Bitcoin Cash since September of last year. However, this is the first time that a large amount of Bitcoin has been sold on the open market since the hack occurred in 2014.
Some have speculated that the sell-off is one of the reasons behind Bitcoin’s recent price decreases. It is possible that the sell-off has caused a decrease in demand and a decrease in price.
Fear, Uncertainty, and Doubt
One of the main reasons for the drop in cryptocurrencies is what is known in the space as “fear, uncertainty, and doubt” or “FUD.” This occurs when there is a significant sell-off in the market, often due to an negative news event or rumor. When enough people start selling their crypto assets, it can trigger a cascade effect that leads to even more selling and a further drop in prices. This can create a self-fulfilling prophecy of sorts, where people sell because they think prices will continue to drop, and prices actually do continue to drop because people are selling.
Another reason for the recent drop in crypto prices is simply that the market is correcting after a period of significant gains. Cryptocurrencies, like any other asset, go through cycles of growth and contraction. After months of steady increases, it was inevitable that there would be at least some pullback. This doesn’t mean that the long-term prospects for cryptocurrencies are necessarily negative—it could simply be that we are in a temporary lull before the next wave of growth.
Lastly, it’s worth noting that government regulations can also have an impact on cryptocurrency prices. For example, if a country announces plans to crack down on exchanges or ICOs (initial coin offerings), that can lead to a sell-off in the market as investors become worried about potential consequences.
How Low Will It Go?
The cryptocurrency market is in a bit of a slump today. Most major coins are down, and some are down by more than 10%. So, what’s causing this sudden dip in the market? And how low will it go? Let’s take a look.
The market is constantly changing, and support and resistance levels are always shifting. However, there are certain price levels that tend to act as “ magnets” for buyers and sellers. These levels are known as support and resistance levels.
Support levels are price levels where the demand for an asset is strong enough to prevent the price from falling any further. In other words, it is the floor that prices can’t seem to break below. On the other hand, resistance levels are price ceilings where the supply of an asset is strong enough to prevent the price from rising any further. In other words, it is the ceiling that prices can’t seem to break above.
When the market is going down, support levels act as a floor that prices can bounce off of. Similarly, when the market is going up, resistance levels act as a ceiling that prices can bounce off of. These levels are important because they can give you clues about where the market is heading next.
Analyzing the charts
When trying to understand why a cryptocurrency is going down today, it’s important to take a look at the big picture by analyzing the charts. By doing this, you can isolate certain trends and get a better idea of what’s driving the market.
There are a few key things to look for when analyzing charts:
-The price action: This is how the price has moved over time. Is it trending up, down, or sideways?
-The volume: This is how many coins are being traded. A high volume can indicate that a lot of people are buying or selling, which can influence the price.
-The market cap: This is the total value of all the coins in circulation. A high market cap can indicate that a coin is more valuable, and therefore its price is more likely to go up.
By looking at these three things, you can get a better idea of where the market is heading and why a particular coin is going down today.
What You Can Do
Cryptocurrencies are digital or virtual assets designed to work as a medium of exchange. They use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
The current market conditions for cryptocurrency are not ideal, but that does not mean that you should sell all of your crypto holdings. In fact, now may be the perfect time to buy more cryptocurrency, or to simply hold on to the crypto that you have.
There are a few reasons why holding crypto is a good idea, even when the market is down. First, it is important to remember that the value of cryptocurrency is highly volatile. This means that the value can go up or down at any time, and that there is no guarantee that it will ever recover from a down period. However, history has shown that the value of crypto always eventually goes back up.
Second, even though the value of cryptocurrency may be down at the moment, it is still possible to make money by trading it. Cryptocurrency trading works by buying low and selling high, and if you timed your trades well, you can still come out ahead even when the market overall is down.
Finally, holding onto your cryptocurrency can be a good way to show support for the technology and its potential future. Even if you don’t think that crypto will ever recover from its current slump, holding onto your currency can help send a message that you believe in its long-term prospects.
So, if you’re wondering what to do with your crypto holdings during a market downturn, consider holding onto them. There’s no guarantee that the market will rebound, but history shows that it eventually does, and in the meantime, you can still make money by trading carefully.
Buy the dip
If you’re wondering “Why is crypto going down today?” and whether you should buy the dip, here are a few things to keep in mind.
First, it’s important to remember that the crypto markets are notoriously volatile. So even if the market is down today, that doesn’t necessarily mean it will stay that way. In fact, the market could very well rebound tomorrow or even later today.
Second, if you believe in the long-term potential of cryptocurrencies, then buying when prices are down can be a great way to get started or add to your position. After all, if you buy when prices are low and hold for the long term, you stand to make a lot of money when prices eventually go back up.
Of course, there’s no guarantee that prices will rebound or that they will ever reach the highs seen in late 2017. But if you believe in the long-term potential of crypto, then buying during a dip can be a smart move.
If you own cryptocurrency that you’ve been holding for a while and you want to cash out, selling is the option for you. When you sell, you exchange your cryptocurrency for fiat currency ( such as dollars or euros). You can then use that money to buy other cryptocurrencies, pay bills, or withdraw it from an ATM.
The answer to this question is not always clear, as there are many factors that can contribute to the price of cryptocurrency going down. However, some common reasons include:
1) Negative news stories or regulatory announcements
2) Selling by early investors who are cashing out
3) A general lack of interest or understanding from the general public
4) Market manipulation by large holders of the currency
While it can be difficult to predict exactly why crypto prices are going down at any given time, paying attention to the news and developments in the space can help you get a better understanding of the market and make more informed investment decisions.