Op-Ed: Why the Bitcoin Bubble Burst is Good for Crypto

Even the most ardent crypto evangelist must admit that bitcoin appears to have been the worst investment of 2018, at least in pure dollar terms. The cryptocurrency has lost almost 80 percent of its market capitalization since it established an all-time high at around $327.15 billion. The adoption rate and volume have dropped likewise. Organizations that were planning to launch their bitcoin-based services have delayed their projects or scrapped them entirely. As any seasoned trader would say, the bitcoin bubble is bursting — or has burst already.

The surprising upturns and downturns of a financial market can confuse onlookers. It eventually is a game of passing sentiments – from one investor to another. If one sells, other buys. But in the event of a crash, when one sells, nobody wants to buy. It starts with a few investors dumping assets at high, then spirals outward. Other investors flock the selling action purely because of panic and price starts plummeting faster. It attracts more selling pressure, leading to fission.

What 2018 brought to the bitcoin market was a lot or sellers against limited buyers. In 2017, it was the opposite – more buyers against fewer sellers. The diverse performance of both the financial years, in successive order, shows that investors were purchasing bitcoin on either the speculation of a bull run or to acquire other digital assets that also promised higher returns in less time.

Reference: https://www.ccn.com/op-ed-why-the-bitcoin-bubble-burst-is-good-for-crypto/

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