Panic is spreading like a virus in the cryptocurrency world. Bitcoin, the flagship of the cryptocurrency, and the rest of the altcoins are suffering from a sharp drop in prices. In fact, in a few days, about 33% of Bitcoin’s value has been lost from its all-time high of $ 60,000. It looks like the end of cryptocurrencies is … again.
The 33% drop in the price of Bitcoin and other cryptocurrencies has created a climate of panic and uncertainty in the industry for the forty-fourth time.
China’s ban on its banks from even approaching cryptocurrencies and the decision by Tesla, Elon Musk’s electric car company to stop accepting Bitcoin as a means of payment, sparked a new cryptocurrency crisis. But are we facing something unknown? The answer is definitely no.
Cryptocurrencies are characterized by something: extreme volatility. And everyone knows that. In fact, the fame of Bitcoin and Company is given by this volatility, as many cryptos reached an astronomical price in a very short period of time.
This has shown volatility not once, not twice, not three times, but hundreds. The fall of cryptocurrencies and the collapse of their prices happens so often that every time the 99bitcoins.com website publishes a large obituary stating that the press took advantage of one of these crises to announce the death of crypto and its Failure as a project.
That last bump It was the 414th time that Bitcoin’s death has been massively declared. In fact, from this 99 bitcoin chart, we can see how this has happened 12 times in just three months, each marked with a red dot. Any drop in prices (motivated by the volatility mentioned above) sends out waves of panic and hysteria that spread across the network … without much foundation.
After this last crash, the price of Bitcoin is currently $ 41,000, Ethereum is $ 2,740, and Dogecoin is 0.39 cents. These three currencies (chosen to be among the most popular) tThey have a much higher price than they did in November last year: 10,000, 300 or 0.002 cents.
So it’s worth asking Are we facing a fall or a correction? Cryptocurrencies have seen historic growth since the beginning of the year. The history of prices shows that after an amazing increase, the price tends to fall and stabilize at a new low. That seems to be happening.
If cryptos stay at prices much higher than they were less than a year ago after an epic crash … it might not be that bad. Perhaps the death of cryptocurrency number 415 will be the final one, or the reason for the price fluctuations in cryptocurrencies can be internalized.