It’s no secret Bitcoin is crashing—and when it does, other cryptocurrencies follow suit. In the last couple of days, the entire cryptocurrency market has lost more than $60 billion USD of its value following a major crash wave that left Bitcoin and other digital assets at their lowest since 2017.
In the murky waters of semi-regulated crypto space, it is difficult to pinpoint the exact catalysts that could have led to the sharp price volatility. However, as many experts agree, the real reason behind the recent crash that left Bitcoin below $5000 focuses on Bitcoin Cash (BCH)—the Bitcoin core (BTC) spin-off that happened in August 2017.
Nearly a week ago (November 15), Bitcoin Cash conducted a hard fork that brought a new wave of uncertainty in the crypto space. The result was a period marred by a major sell-off of Bitcoin Cash.
The fourth largest cryptocurrency
Bitcoin Cash is the world’s fourth-largest cryptocurrency, commanding nearly $4 billion USD in market size. However, the last week’s split led to its value reduced by more than half. As of this writing, Bitcoin Cash is valued at $206.35 USD on CoinMarketCap.
It’s hard to tell if and when the market will level up, but here are some things to do in a bearish market.
Another cause for alarm?
According to Clem Chambers, a Forbes contributor, the red market will continue for some time. The financial market is undergoing a reset worldwide.
“Crypto and equities are crashing because ‘fiat,’ old fashioned money, is being sucked out of the system by the Federal Reserve’s reverse-QE. To top that, the global order is suddenly wobbling on its axis with Trump’s ‘war on trade’ and the increasing ‘volatility’ of governance not just in the U.S. but around the globe.”
A time to buy
According to Nigel Green, Founder and CEO of de Vere Group, a globally recognized financial consulting firm, this is the time to buy:
“Just a few weeks ago crypto traders were airing concerns about the lack of volatility in the crypto market. Now volatility is back and many savvy investors will be using this as a major buying opportunity, perhaps the last one of 2018.”
Green added that crypto traders should take this opportunity to acquire more assets for future sell-off when the market becomes bullish again.
“Digital currencies are the future of money and, as such, they will be capitalizing on the lower prices in order to build their portfolios and shore-up their positions.
“Financial traditionalists view cryptocurrencies the way traditional stores used to view online retailers. But with their hands in the sand they are failing to see that cryptocurrencies have already changed forever the way the world handles money, makes transactions, does business, and manages assets.”
Finally, yet importantly, invest in cryptocurrencies with a future. Because those without will surely go to zero. On the other hand, digital assets that Bitcoin-style mineable, distributed and trustless, will ultimately ascend to the much-promised moon.
Disclaimer: This article does not constitute a direct investment or trading advice. It is solely for informational and educational purposes only. Consult an expert before you invest in cryptocurrency—and, in crypto space, don’t invest what you cannot afford to lose.