After a long quiet period of relative stability the Crypto-market crashed and the leading currency Bitcoin lost more than 40% of its value.
Following Bitcoin Cash’s fork the market responded with a huge sell-off which left people wondering what happened as largest currencies BTC and ETH started a free fall, while the opposing XRP(Ripple) claimed the second place from Etherium amidst the storm. Tether getting fingers pointed at it and not being as stable as a stable-coin should be gives another worrying perspective of possible manipulation.
Analysts came out trying to explain what is going on, some claiming the bottom is not yet reached, others claiming that now is the time to start stocking up in crypto and making correlations with the stock market falling and the USD mysteriously rising without real reason. But as usual in the crypto market the truth is not really exposed and is somewhere in the middle. There are conspiracy theories and obvious numbers of BTC being oversold but a new direction would be a difficult and dangerous thing to predict even for the most seasoned of traders.
What is for sure is that times of instability in any market is a time of opportunity, the technology of crypto is evolving and getting better every day and we still have not seen the end of this spiral. As a free market with no substantial regulations yet, since by its own nature it only manages to baffle old-school economists and lawyers, moves of key players like miners remain internal and obscured, lower price means lower hash rate means slower transactions and the circle continues with parameters being far more and complicated while real world trading integration is still not optimal.
On top of all that, news of Bakkt delaying the release of their platform and services could also be a factor, as a lot of views of the potential liquidity it will add and a fresh breath on the use of crypto might be a behind the scenes reason for this whole turmoil.
So in this foggy minefield that is the crypto-economy at the moment (and world economy as a whole) what can a crypto holder or enthusiast do? As with every nightmare first you need to be awake and aware, take the time to recover and strengthen your judgment before taking rush decisions. Cryptos are here to stay but whoever decides to get on that ride before it stabilizes should have a strong stomach.