It is not the first time: Is the Bitcoin crash repeating itself?

The recent Bitcoin crash which took its value from about $ 19,000 to less than $ 10,000 is not the 1st crash in the prize of Bitcoin. Earlier as well, it has fallen to as low as just a few cents from hundreds of dollars. Therefore, the investors in Bitcoins are not necessarily worried about the current crash.

Also, it is nothing in comparison with the astronomical rise of 1000% which it has seen in the last 12 to 15 months.

The prize of Bitcoin is significantly governed by the news flow which comes across. Owing to this very reason, it is not the 1st time that such a significant crash in the price of Bitcoin has been seen. When you observe the price trends in Bitcoin for the last 5 to 6 years, you would realize that it is pretty easy for the Bitcoin to lose value by 50% or more and thereafter, surpass the earlier highs. Owing to this very reason, the longer term investors in Bitcoin are not worried at all.

This time, however, the institutional investors, as well as the hedge fund investors, are involved as well which were not involved in the earlier crash. This is one of the main reasons why many investors are trying to figure out whether it would be different this time. Moreover, Bitcoin trading options are also available these days.

Many of the experts are also wondering whether the futures trade would spill over to the equity markets and lead to a crash in the equity markets as well. After all, when the prize of the underlying asset falls significantly, the brokers would be selling the stocks of the clients in order to make up for the margin difference.

Thus, it remains to be seen whether the Bitcoin market which has been dominated by the retail investors for a longer period of time is still unchanged or whether the entry of the big institutions, as well as futures contracts, actually changes the composition as well as the price trend of Bitcoin.

If you clearly go through history, you would realize that Bitcoin has arisen again and again after plunging into the depths from the peaks. Thus, if history is anything to go by, you can be sure that Bitcoin would not only rise again but also would be able to surpass the older highs as well in order to create further wealth for the long-term investors. One thing is for sure, whether it rises or whether it is falling, Bitcoin is one asset which is hard to ignore.

Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.


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