The cryptocurrency markets are currently experiencing 10% to 45% drops across the board, with the numbers still falling. There are a multitude of reasons why this is happening. However, this is the time for you to buy altcoins and BTC/LTC/ETH on sale, not panic.
First: Take a deep breath. The reasons for a drop in the markets are not the end of the world.
Second: This is an excellent time to buy. Log onto your Coinbase and Binance accounts and start scooping up coins while they are on sale. Warren Buffet may have issued statements saying he would never invest in bitcoin, however his sage advice about investing holds true at this very moment.
It is wise to be “Fearful when others are greedy and greedy when others are fearful.”
This is a fire-sale. Read on to find out what is causing the downturns and when to expect the market to resume its growth.
When will the cryptocurrency markets go back up?
- People spend a TON of money on travel and presents during Lunar New Year. This is their Christmas. This is also the largest mass migration of people on the planet, occurring over two weeks. Projections are for $100 billion USD in spending. Asia still dominates in crypto-trading by volume, accounting for the vast majority of money flowing in and out. Guess what is coming up in 3 weeks? Lunar New Year. Lots of money is flowing back to fiat to buy presents and plane/train tickets. This selloff has happened exactly 3 weeks before Lunar New Year each of the last 4 years. The bulls and big buyers are expected to return by February.
Why Is Bitcoin down?
- Big batch of BTC futures contracts are now expiring which we never had before
- Bitcoin has been in a bubble since the underlying technology became unusable for its purpose (as an instant, worldwide, cheap alternative to banks) in late-2017. Before that, there had been a high sentiment for Bitcoin, based on its 5-to-10-year demand expectations. But that priced-in sentiment was gone when BTC’s fees skyrocketed and transactions began taking days or weeks instead of hours. The technology didn’t appear to be heading to anywhere near it’s goal short-term.
Why are altcoins down?
- Bitcoin, Ethereum, and Litecoin are the main entry points from FIAT currency to altcoins. When those large currencies drop, it causes the rest of the altcoins to drop as well.
Why is the cryptocurrency market down?
- Pullbacks are a normal thing in the markets. The market has been overdue for a correction. Viewing charts over the years show a pattern of pullbacks followed by growth to previous all-time highs.
- News reports continue to be published, scaring investors and causing more selloffs and panic.
- Every year there is a January dip.
- Asian New Year always leads to fiat outflow in mid January, often continuing into early February.
- People time their sales to January for tax deferral.
- News that China wants to stop access to foreign crypto exchanges.
- Korea regulatory uncertainty.
- France and Germany saying they’ll look at regulations.
- Lots of new money entered the markets in November and December 2017 and are now taking their profits.
BitConnect Cryptocurrency Exchange Shuts Down
Posted on their website [currently down]:
This is to inform all community members that we are closing the Bitconnect lending and exchange platform. We are closing the lending operation immediately with the release of all outstanding loans. With release of your entire active loan in the lending wallet we are transferring all your lending wallet balance to your BitConnect wallet balance at 363.62 USD. This rate has been calculated based on last 15 days averages of the closing price registered on coinmarketcap.com. You are free to withdraw your BitConnect coin currently in QT wallets that was used for staking as well. We are also closing BCC exchange platform in 5 days. In short, we are closing lending service and exchange service while BitConnect.co website will operate for wallet service, news and educational purposes.
The reason for halt of lending and exchange platform has many reasons as follow:
- The continuous bad press has made community members uneasy and created a lack of confidence in the platform.
- We have received two Cease and Desist letters, one from the Texas State Securities Board, and one from the North Carolina Secretary of State Securities Division. These actions have become a hindrance for the legal continuation of the platform.
- Outside forces have performed DDos attacks on platform several times and have made it clear that these will continue. These interruptions in service have made the platform unstable and have created more panic inside the community.