Bitcoin price dumps - but no reason to panic
in the last few days, the bitcoin price has fallen as expected below a important support at $ 5700 , but why as expected? On October 7 I already wrote that there are just few "good news" that could generate FOMO which is fuel for a trend reversal from bearish to bullish. One of the key gamechangers (van Ecks Bitcoin ETF) will likely be approved or rejected in February - March 2019 . If the media does not start soon with the FOMO roll I expect more price drops to at worst 4000 $, big investors should return to the market at this area.
In the long run you should not forget that the entire crypto market is only 10 years old, this is a very short time in a life cycle of a market. The second important point is that the total coin market capitalization has not even reached 5 % of the capitalization of stock markets for example (visualcapitalist.com/worlds-money-markets-one-visualization-2017/) . The whole stock market has a total capitalization of 70 trillion dollars, the crypto market was not even at one trillion dollar. As soon as "stability" enters the crypto market, big money will flow into it, the question is whether the crypto market was created for "stability"? The future will show.
The third and final point today is the lack of acceptance on the market. I myself live in Germany and notice every day how disinclined the people of Bitcoins are because they know just little or wrong about it. As soon as there are more usable applications and cryptocurrencies come into everyday life, the whole market will take a big leap because then money will flow in from all over the world.
I could mention lot of other points such as the impending ban of cash (and with that our privacy) or the needlessness of banks but then I would have to write a book here. In the following Bitcoin analyzes I will write something about the two above mentioned points.
In the long run you should not forget that the entire crypto market is only 10 years old, this is a very short time in a life cycle of a market. The second important point is that the total coin market capitalization has not even reached 5 % of the capitalization of stock markets for example (visualcapitalist.com/worlds-money-markets-one-visualization-2017/) . The whole stock market has a total capitalization of 70 trillion dollars, the crypto market was not even at one trillion dollar. As soon as "stability" enters the crypto market, big money will flow into it, the question is whether the crypto market was created for "stability"? The future will show.
The third and final point today is the lack of acceptance on the market. I myself live in Germany and notice every day how disinclined the people of Bitcoins are because they know just little or wrong about it. As soon as there are more usable applications and cryptocurrencies come into everyday life, the whole market will take a big leap because then money will flow in from all over the world.
I could mention lot of other points such as the impending ban of cash (and with that our privacy) or the needlessness of banks but then I would have to write a book here. In the following Bitcoin analyzes I will write something about the two above mentioned points.
The analyses provided are for informational purposes only and do not constitute financial advice or recommendations to buy or sell anything. The information presented is based on personal research and interpretation.
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