BITCOIN IS CRASHING | WHAT NOW

Has Bitcoin crashed? It is falling today.

No bitcoin has not crashed.

What you’re seeing today is called a correction in the price of bitcoins.

A correction is generally defined as a drop of about 10% in the price of the stock or currency in the case of bitcoins.

If fact , you can see the price drop from today’s high of $17,300 to a low of $15,500.

In percentage terms, it is ($17,300 - $15,500)/ $17,500 = 10.3% .

If it is a crash, it will be much more serious than that.

Though Investopedia does not give a percentage but simply defines a stock market crash as a sudden dramatic decline of stock prices, I’d venture to say it has to decline at least 20% in one day to be considered a crash.

Moreover in a real crash, the volume will spike a lot higher than the average daily volume in normal days.

So the conclusion is that what happened today is a correction.

Perhaps those who already made quite a lot of profits from bitcoins have decided to take profits causing the decline in the price today.

Updated on 22 Dec 2017