crypto flash crash is spooking the crypto dads and stock bros
Updated: Dec 4, 2021
"omg! crypto fell! told you it was a scam... that's why you lose all your money lol"
Today's flash crash is one of the biggest we've seen since earlier this year in May. There are a couple of different things that have led to this big change of price, but to sum it up we have,
China's crypto ban
India's new crypto regulation
New COVID-19 Omicron Variant
U.S. spending bill that adds taxes for cryptocurrency broker.
With Bitcoin hitting $42k and Cardano hit $1.30, everyone is freaking out.
so what's going on?
Everyone in the crypto space has been relishing in this bull market that we have found ourselves in. While high prices make people like you and I super excited, it also gives big retail investors and spenders the opportunity to pull their money out at a good price if there is enough FUD spreading. This is what led to the greed and fear index showing extreme levels of fear over the last week and why we saw the many of the bigger coins in the market drop by 20%-30% in just a day.
Everyone expected something like this to happen after China's crypto ban. It didn't do too much to put a dent in this bull run, but combine it with the fact India is trying to ban all private cryptocurrencies and the U.S. is implementing taxes galore through an infrastructure bill that is very unfavorable for investors, then you get a big old bubble just waiting to be popped. The needle that bursted the crypto bubble that sent the market plummeting was everyones favorite virus, COVID-19, except this time it had the new DLC V2+ re-released skin pack with extra deadly umf to it that led to big investors selling. They call it the COVID-19 Omicron Variant.
I'm not as interested in the Omicron variant as much as I am in the Omicron coin. Check it out. It has pumped over 900%. Funny stuff
why im not worried
Most people that are serious in the crypto space are using this as the perfect buying opportunity. One crypto analyst says that, crypto is on sale. It could definitely get worse before it gets better, especially with anyone new to the game panic selling at the sight of these big losses, but it will only be a matter of time before people start to buy up this dip like there is not tomorrow. Even the entire country of El Salvadore is taking advantage of this dip, buying a total of $7.3 million in BTC.
Generally, we can expect to see the price start to trickle back up again until boom, ATH again. That is what we saw happen earlier in September of this year and people are expecting to see something similar to that happen again. One Twitter user, Rekt Capital, points out that
“In September, BTC retraced -25%. This is when BTC investors got Extremely Fearful. Then BTC reversed to new ATHs. Now, BTC is down -23%. It's likely the Fear & Greed Index will show Extreme Fear very soon. Similar retracement depth. Similar investor sentiment"
BTC/USD 1-day chart. Source: Twitter
I think this makes a lot of sense and I see this as a little hiccup in the grand scheme of things for the crypto space. I personally see a bear market as a possibility, but overall there is no reason to believe that the big boys like BTC and ETH won't keep going up, and usually when they go up the other alt-coins follow in place, so definitely keep a close watch.
If you plan on buying the dip and HODLing on, I highly recommend Coinbase. It is super easy to use, fast, and safe. It is a reliable exchange that offers a wide variety of coins. Check it out below.
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Just keep in mind that crypto is a heavily volatile market and there really is no way of knowing what the market will do on a day to day basis, but if you believe in it as much as I do and the rest of the space does, then HODL on.
For more news and updates on the #crypto space be sure to check out future posts. For some insights on an underground #alt-coin that could withstand this strange shift in the market, check out this post on Metahero.
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