Bitcoin: only mere speculation or is there another reason that leads to its drastic decline?

By derwin25 | Worldinfo | 25 Sep 2019


 

It is no secret that 2019 has been a difficult year for the cryptocurrency price. After reaching new historical highs these months ago, with a market value of US $ 225,536,115,137, the price of practically all of them has plummeted in a matter of hours, losing from 13% to 22% of its market. capitalization they owned.

Many analysts proclaim that these, as in other occasions, are unavoidable given the intrinsic characteristics of cryptocurrencies, and various factors that could affect this fragile ecosystem, although it could also be an example that if any prediction is repeated a sufficient number of times , ends up being fulfilled.

The question is: why is the cryptocurrency market so affected by any unexpected event? The answer is quite complex to answer.

The price of bitcoin, even after its crash, is 50% to 60% higher than a few months ago. So any catastrophe can be relativized. There are many factors that generate strong pressure on the crypto ecosystem, such as political, economic, social and technological factors, but in general the value of bitcoin is always determined by the intensity of supply and demand.


Remember that investments in cryptocurrencies are always risky even if the scenario shows otherwise

 

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Objectively, for investors who have bought where the psychological value of $ 9,000 or $ 9,500 was, what happened is quite similar to other occasions presented last year; For an investor with experience in the market, what happened is only part of the game when dealing with assets that have an almost unpredictable volatility.

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derwin25
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