There are mixed views right now about cryptocurrencies and their future. While the stock market experts already know what the stock market anomalies mean, cryptocurrencies buyers, however, cater a different audience having lesser knowledge about the currency markets.
Many people have started believing strongly that the cryptocurrencies are going to crash while others still have the conviction that the falling prices are just a market correction.
What’s happening right now is a correction. It’s definitely not a sign of crashing. Prices are going down because people are selling their cryptocurrencies. But the prices are going down in the same manner as they went up. As the prices continue to fall, an equilibrium between the buyers and sellers is expected soon. And it’s also expected that the growth will take place again but at a saner rate this time.
Yes, the other possibility is a market crash which could happen in the near future. But this could now only happen if something very bad happens. For instance, the U.S. banning the operations of cryptocurrencies after the operators of major exchange scammed their customers. Or it could be due to a market going out of proportion; which could also happen.
The prices were overblown and everyone knows that. If that had continued, the bubble would have burst, inevitably crashing the market.
Eight months ago, the cryptocurrency market cap reached $500 billion. And now, after two days of intense selling, it’s back to $500 billion.
If some of you are thinking to make a move and buy cryptocurrencies, I won’t say don’t. But I won’t say “do it” either. I am not an expert. I have been trading cryptocurrencies during a time when it was all gold. At this point, cryptocurrencies will see a rise but a slower one this time. But mark my word: There’s a probability for the market to go out of proportion and if that happens, expect a crash that would take years to recover. In fact, with people having their expectations skyrocketed already, it could take very long to recover.
For now, it’s a good news that cryptocurrencies prices are going down as the prices are now getting a reality check. But continuous fall could be bad, so we just hope that the equilibrium is achieved soon.
Note: All content is original & written by NewsCrux Team.