The sharp drop in bitcoin has caused panic around the world. Many people have invested their last money in cryptocurrency. As a result, they lost their savings and are sitting at a broken trough. Why is bitcoin getting cheaper? When will there be growth and how to live now? These and other questions concern many people.
The value of bitcoin soared upward like a whirlwind. Many people have made a lot of money from the growth of cryptocurrencies. However, the joy was short. The price of bitcoin flew down like lightning like a Tsunami wave, leaving behind ruins.
The fall in bitcoin began with news from China, when the authorities decided to limit the power supply for miners. Then they began to consider restrictions against crypto currencies and all operations related to ICO. Further, one Chinese exchange ceased its work.
In December 2017, major global exchanges opened Bitcoin futures trading. This caused the emergence of large players on the market, which caused the price of bitcoin to rise. Big money in the market is capable of both raising the price and lowering it. To capitalize on the fall in bitcoin, a large futures contract is opened for a fall. After that, everyone began to dump bitcoins en masse and panic arose, which led to a collapse in the value of the crypto currency.
Bitcoin price declines have occurred every January for the past four years. On the eve of the Chinese New Year, people are selling cryptocurrencies and withdrawing money to buy gifts for their relatives. There are more people who want to sell than buy, which causes a decrease in the price of bitcoin.
At the end of 2017, the news of Bitcoin's takeoff became the number one topic. There are even more people who want to get easy money. A stream of newcomers poured into the market, which pushed the bitcoin price up even more. However, their hopes were not justified - it was the very peak and the price went down. Everyone was shocked and began to sell cryptocurrency, hoping to preserve their savings. Thus, newcomers fell into the networks of large investors.
Negative news, the game of large investors, the Chinese New Year and the panic of the people led to the collapse of the cryptocurrency market. The pyramid collapsed and people lost a lot of money. The most important thing in such a situation is not to panic and not sell everything for a penny. After a fall, growth always resumes, so in order to reduce your losses, it is recommended to leave 30% of the cryptocurrency.
