Crypto Markets in February Crisis
Since the beginning of January, when almost all of the cryptocurrencies were at their peak, now, at the start of February, they’re down to a drastic change. While many believe that this marks the start of a the downfall for some virtual currencies, others see it as an opportunity to invest before their price starts to rise again.
In fact, it is highly probable that many of the cryptocurrencies that are sinking now won’t peak at the same height anymore. Many investors are experiencing their worst times at the moment, but those who have been in the crypto business since before 2017 believe that the current occurrences aren’t something worth worrying about. While the crypto world has been doing great for the past year, such drastic price drops have happened before as well. For instance, the price of Ethereum dropped from $328 to just 10 cents in flash crash in the summer of 2017, only to come back to $317 a few hours later. Therefore, the recovery of cryptocurrencies might be just a question of time, and we might see them back in shape sooner than we think.
Despite that, uncertainty is rising among investors and casual crypto users, and the panic creates new rumors that drive the mass into making desperate decisions. It’s probably true that all the dreams about a new house should be put on hold for a while, but believing that crypto is done for is certainly not true.
Nobody knows for sure if this is the lowest we’ll see cryptocurrencies markets drop, or if the worst is still to come. In the past month, Bitcoin’s price has dropped over 40%, remaining now at about $8000. The flagship of the crypto world, Bitcoin, which has driven many into making major investments, has dropped about over 50% in just two months, after having reached an all-time high of $20,000 in Decemeber 2017.
However, the current crypto market drop is not just about Bitcoin. Ether, Ethereum’s main digital currency, which withheld some of the fiercest market oscillations, has dropped from $1000 to $760 in just 18 hours. Another virtual currency, Ripple, which is the third by total market cap, has reached an astonishing $4 figure on January 4th and sank by over 70% in the first days of February – back to where it was the previous year.
While it is very likely that most of the cryptocurrencies will start to grow again, but due to all the panic, regulations, and raids, we might see an unexpected turn of events in the cryptocurrency world this year.