Crypto once again experienced one of the worst days recently when Bitcoin price fell down to $49k with 10% decrease on August 5. This decrease in the price of bitcoin pushed down altcoins badly. Altcoin prices were declined 20% to 35%. It was a massive decrease in crypto prices which happens rarely.
While the cryptocurrency market was hit hard , everyone was surprised and finding the reason behind this big downfall. There were millions of dollars wiped from the market. Traders opening the long positions got rekt badly. According to a rough estimation crypto observed loss over $1 billion .
Well the crash is not only limited to crypto sector, it is a worldwide drop in the prices of crypto as well as Stocks . The reason behind this global crash is Japani Yen, markets were crashed after the central bank of Japan raised interest from 0 to 0.25%. When it comes to Japan, Nikkei and TOPIX indices have fallen badly, dropped over 8% since 1987.
Alongwith Nikkie and Topix , many others were dropped ,these includes Marubeni , Mitsubishi , Sumitomo and Mitsui. There were news about South korea that sell orders were halted because of panic sell this clearly indicates fear and uncertainty among the traders.
But the good thing is that crypto is on recovering edge as always. The prices have been recovering but still we cannot compensate the losses to the ones who got liquidated during the crash.
Offcourse the crypto market is recovering but there is still fear and uncertainty among the investors as some experts are still predicting that market is fake recovering and is yet to drop further before the original pump.
As the market is recovering , which is good, even if it drops more , it will finally come back. If you are holding your bags in spot then you have very less risk as you will be fine when the market recovers fully , this is in case if you bought the tops.
While on the other hand only people suffer badly who are involved in future trading. There is no doubt that future trading brings high profits on the table but keep in mind that it has high risk of losing money as well. This can be clearly understand by the recent market crash.
Bitcoin price is now trading at $57k which is still a great buy price if you are in for the longterm. On the other hand, Our beloved $HIVE cannot be ignored at current price. It is trading at $0.18 which is a big discount. I know it hurts to see hive hitting these levels especially when you bought at higher prices but the good you can do is buy more and DCA. Hopefully hive will put smile on our faces one day.
As the market direction is still not clear and people are having fear of falling more, one can wait more before doing futures trading as its the safest option , and if you are a spot trader then current prices are a great deal as everything is at great discount right now.
Thats it for today. Thanks for reading. What do you think about my today's topic? Let me know your thoughts in comment section. In the end i would like to Wish you and your family a happy day ahead. Stay Blessed.
Motivation Dose
Get out of your comfort zone and fight the troubles and hurdles that come your way to success. Success awaits you. Life is beautiful ، live it to the fullest. Dont be hopeless. Stand strong in the ups and downs of life as its part of life. There is always a light behind every dark side.
About Author
@coolguy222 is a crypto trader and content creator on hive blockchain. He also runs a small business of Mobile accessories and Wrist watches. He loves to make new friends.