Why Are Bitcoins and ether Dropped by approximately 15% in a Single Day? - Lockdown - How to invest wisely and make money

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Why Are Bitcoins and ether Dropped by approximately 15% in a Single Day?

Let us have a brief overview of these two hottest digital currencies. First, why are they in hot water right now? The most obvious reason is they just had their first major transaction worth $20 million wiped off the balance of their existing virtual currency, which by the way, is ether. 


This is a very good indicator of what might happen in the future. 

If we want to invest in ether and other commodities, then we need to take this drop as a sign that the market will soon go against us, so it is best to get into the cell before this happens.


5 reasons why Bitcoin and Ethereum plummeted 15 in a single day

Second, what is going on with this "pump and dump"? This is a term that describes when someone pumps large amounts of money into an investment and then unloads that same large amount immediately leaving everyone angry and confused. 


In this case, the "pump" was made by a group of big investors who made a massive deposit and dumped all their ether into the market. 

It is like they realized that ether might one day become a very strong market currency. At the same time, they didn't care if the price went down or up, because they simply unloaded and walked away.


Why was there such a large dump? 

Well, many traders believe that this was done to cover some gaps in the market, and help create a larger opening for their currencies. By dumping huge amounts of cash into the market, they hope to create a faster increase in price, so that they can profit from it. However, it is possible that they were trying to prevent a further drop, or at least move the price back into a higher range before it bounces back.


Why was there such a big rush to trade? 

Many traders feel that this was caused by someone manipulating the price of the "coin" in hopes of causing a run on the exchange. This rumor has not been confirmed, but it certainly raises questions. It is a popular belief that the Chinese government manipulated the price of the Forex market to help prop up the country's economy. Now, if that were true, why would there be a large number of Chinese investors trading the opposite side of the world?


There are other reasons why the price of bitcoins and ether has dropped. Investors simply took too much money from their brokerage accounts and dumped them all into the market. Banks have become more cautious with their investments in the last several years, due to the financial crisis, and have become more cautious about putting their money in risky ventures. While this does not affect investors, this could have an effect on the price. Investors who put their money into something that could fall out of favor quickly would lose a lot of money.


One more reason why bitcoins and ether have dropped in a single day is because of the news. In late August, a new news site, The New York Times, reported that the NSA was developing software that would track the activity of US citizens on the Internet. If this software could be found in every computer around the world, it would be powerful. It is possible that the rumors that arose from the New York Times story were partially true, and the investors who bought into the rumor got caught up in the frenzy of the marketplace.


As mentioned, many people are speculating that this bad news will cause the market to crash, but it is too early to tell whether or not this is true. Markets do experience short-term cycles, and they can even go up before falling back. However, the large fall that took place over the weekend may just be one of those cycles. If this occurs, then the market will likely recover soon.


The other three reasons why these coins dropped are all related to speculators. 

Speculators move the price of a coin up or down based on their predicted future price. While there is a chance that the speculation will pay off, this is not a good reason for an investor to sell. A wise trader will buy when the price is low and sell when the price is high. By trading often, a smart investor can increase his or her profits, and lower his or her losses.


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