Massive crash in cryptocurrency market, Bitcoin below $100 bn market cap – What should investors do?

The cryptocurrency market saw one of the worst crashes in recent times today. At the time of recording, the Bitcoin price was around $5540 dollars with market cap falling below $100 billion for the first time in a year. The Bitcoin market cap was around $96 billion as opposed to the entire cryptocurrency market cap which was at $181 billion. All the major cryptocurrencies have taken a heavy beating in this unexpected market crash.

So, what caused this massive sell-off? There are three likely reasons for this crash:
1. The Bitcoin Cash hash wars where a lot of the Bitcoin hashing power has been dedicated to the Bitcoin Cash ABC by Bitmain. A similar counter-attacking stance has been taken by Bitcoin Cash SV as well. This has reduced the sustainability of the Bitcoin network by a bit and also triggered a little panic in the market.
2. The massive sell-off in tech stocks might be having a ripple effect on the crypto market as well. Institutional investors may be wary of investing in any market, be it stocks or crypto.
3. As always, market manipulation by a whale or a group of whales cannot be ruled out.

As an investor, you could choose to either ‘hodl’ patiently or scout for buying opportunities. Bitcoin definitely looks like a solid buy at $5500. But please do your own research before investing in cryptocurrencies.

Thumbnail image: Marco Verch on Flickr – https://www.flickr.com/photos/30478819@N08/24856019428

References:

How the Bitcoin Cash (BCH) Hash War Is Affecting Bitcoin (BTC): https://ethereumworldnews.com/how-the-bitcoin-cash-bch-hash-war-is-affecting-bitcoin-btc/

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Disclaimer: Please keep in mind that I have made this channel to share my experiences in the cryptocurrency market. I am not a professional financial advisor and the information provided is solely for educational purposes. Consult your own financial advisors and do your own research before investing in cryptocurrencies. Investing in cryptocurrencies is inherently risky and you can also lose all the amount you invested. Only invest the amount you can afford to lose. The channel shall not be liable to the viewer for any damages, claims, expenses or losses of any kind (whether direct or indirect) suffered by the viewer from or in connection with the information obtained on this channel.

Massive crash in cryptocurrency market, Bitcoin below $100 bn market cap – What should investors do?

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