The Reason Why Crypto is Still CRASHING
Crypto is continuing to plummet. And many people are getting very worried not only Bitcoin, Ethereum, but we’re seeing all the other altcoins take big hits as well.
We’re seeing Bitcoin’s price drop to $40000 per coin. We’re seeing a Ethereum’s price drop below $3000 per coin. And Dogecoin drop to around 22 cents.
The reason why the market is crashing
The reason why the market is falling both the stock market and crypto is because of fears coming from China’s second largest property developer by sales called Evergrande Real Estate Group. Many people are worried about the possibility of them defaulting, and this could have a sort of domino effect on the market. So that has been the main reason why we’re seeing stock market and crypto fall.
Now the question is, is this valid? Should we be seeing crypto really fall this much? Or is this just a lot of FUD coming out of China? what we’re seeing is an extreme overreaction every single time we see some news coming out of China, whether it’s regards to them outright banning crypto, whether it’s some banning crypto miners, whether it’s what’s going on with this property developer, whatever we’re seeing, it usually seems to have an overreaction in the market for crypto.
Every time we see something like this happen. We see a massive drop in crypto’s price. We saw it a couple of months ago when crypto was at an all time high. We saw it plummet and that was what sort of started that market consolidation period.
What’s going on right now is an overreaction
Whether the market is falling because of FUD coming out of China, whether whatever is going on in the market, that doesn’t really matter because we’re seeing the big money players are doubling down, buying more, rolling out new products, getting into new altcoins. What’s going on right now is an overreaction. Yes, it can be sustained. It can trigger a crypto winter. But ultimately you’ve got to ask yourself, are you in crypto for the long term? Do you think five years from now, prices are going to be higher?
I’m just going to buy because I think crypto is going to be more established, going to continue to grow five years from now. And if I think it’s going to be bigger five years from now, there’s no point of trying to time the market. All this data really shows that it’s a bit of an overreaction coming out of China shows that institutions are doubling down.