5 Reasons Why Bitcoin is Crashing and What You Can Do About It

Bitcoin has been on a pretty wild ride over the past few weeks, with the price of one coin fluctuating drastically from $17,000 to $12,000 and then back up to $15,000 in just four days. This rapid shift in value (and market cap) has left many investors wondering what’s going on, and whether it means the cryptocurrency’s days are numbered or if this will be just another small bump in the road toward mass adoption.

1) The most important question about the recent Bitcoin crash

how much lower will it go? At press time, it was down more than 10% at $8,825. Just as important: how far up can it go? Most analysts agree that a recovery isn’t imminent, but that doesn’t mean there isn’t good news on the horizon. Here are five reasons why Bitcoin could recover—and what you can do to protect yourself until then. 

First, let’s remember why we’re in freefall right now. We might not know who Satoshi Nakamoto is or exactly what they want to achieve with Bitcoin, but they certainly have our attention. Second, we just had some dramatic changes in US-China trade relations over the past week. Third, fear of further regulation has always been one of Bitcoin’s greatest barriers to adoption; both countries have taken steps recently which may make mainstream adoption less likely or harder when it does happen.

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2) How did we get here?

Cryptocurrencies came into being in 2009, when bitcoin was created by a programmer or group of programmers going by Satoshi Nakamoto. The first digital coins were intended to serve as an alternative to existing forms of currency and payment. Fast-forward eight years, and bitcoin has become one of a growing number of cryptocurrencies that are accepted around the world as a form of payment, such as ether and XRP.

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3) What are the reasons for such volatility?

There are many reasons for why Bitcoin has become increasingly volatile. A lot of things can affect its price, ranging from government regulations to technological problems to simple human emotions. In order to determine whether or not you should be worried about its volatility, we have to look at what’s causing it. The following five reasons are common issues that affect bitcoin’s value

4) Is there anything investors can do?

In times of volatility, traders like to say there’s no time like a good time to buy or sell—and that sentiment has once again been proved correct. If you missed out on investing in Bitcoin last week (or you’re wishing you had sold earlier), then what can investors do now? How can they know whether or not it’s time to go all-in?

5) Conclusion – Make sure you remain calm

The cryptocurrency market is still quite volatile, so it’s important to stay calm when purchasing bitcoin. If you buy too soon, it’s possible you could face losses later on. Make sure that you don’t rush into any purchases as quickly as possible; instead, try to consider all of your options before proceeding. Additionally, remember that although investments in cryptocurrency can seem a bit uncertain right now, many experts believe that investing in bitcoin may be one of the most promising opportunities in 2018.