I’ve spent the last week or so debating with people that Bitcoin has not crashed (yet) but has dipped, today I am declaring it has indeed crashed. Down almost 20% from yesterday and losing over 1k in less than an hour bitcoin is on its way down. But why and will it recover?
Why the Crash?
If we look at the state of the world with the current coronavirus scare affecting the stock market its easy to make a connection. The virus scare is playing a big part in BTC’s recent crash. Many of us thought BTC might be immune from this market shock as crypto as a whole was performing better than the stock market at the start of this craziness.
Saudi Arabia and Russia are feuding over oil. Despite what people think, most government currency is backed by oil or the value of oil. Because a large amount of oil comes from Saudi Arabia this is playing a small part in the stock and crypto markets as well. Time will tell to see how this turns out.
There are smaller factors in play here also but the main 2 reasons in my mind are the virus scare and the oil feud. Most of this is FUD and I’m personally hoping for a sharp bounce back up in a few weeks.
Is now a good time to buy?
If you know me then you know I always say its a good time to buy. The market is unstable right now and could be prime for new buyers to get in cheap. There is uncertainty in the market as it is highly volatile so please only put in what you can afford to lose as it could keep crashing. I dont believe it will but I also can not say with certainty.