🙈 Is the Bubble Popping Now? I Doubt It

What's going on: Bitcoin and cryptos are going down big time. So were the sceptics right all along? CNN money writes that Bitcoin has lost 1/3 of it's value in just 24 hours, The Telegraph asks if the bubble is finally bursting and Reuters reports that this is the worst week for Bitcoin since 2013.

Well, if you do an objective analysis you have to admit that the loss in value in the last couple of hours is huge. The total value of all 1.300 cryptos including Bitcoin is down more than 30 percent from its all-time high of $650 billion market cap earlier this week.

But: This is nothing new or special. Bitcoin has crashed 30% six times (!) in 2017. Just look at this Tweet:

Source: Twitter.com

But, and this is very important, while it's true that the markets hit a low of $418 billion today, it's still a ridiculous gain of 4,000 percent if you compare it to around $10 billion on Jan. 1, 2017.

Why should I care: What's happening and how will all this play out in the coming days and weeks? Well, this is a question nobody who is not trying to bullshit you can answer.

Are the people who got into Bitcoin and other cryptos at much cheaper prices cashing out? Maybe. Are evil bankers and clever investors at work, who shorted the hell out of Bitcoin and are now making a ton of money? Possible.

Source: Twitter.com

Either way: All this may look intimidating for everyone who got in in the last weeks or months, but this is not happening the first time. Sure, the stakes are getting higher, futures markets can have yet unknown effects, but it is very unlikely that this will hurt cryptos more than several price plunges in the past.

Source: Twitter.com, coindesk.com
GIF: giphy.com

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