How Much Can Cryptocurrencies Possibly Keep Crashing?
Almost the entire cryptocurrency market has been on a downhill for the past few days.
The recent debates about cryptocurrency regulations in South Korea have left the traders of the country in pull out mode. As a result, it seems as though other traders from all across the globe have been effected as well.
Due to the scare of cryptocurrency being regulated in Korea (and potentially other countries), many people have been selling their cryptocurrencies at extremely low rates, while at the same time with many of them in desperate attempts of buying into another cryptocurrency that they believe may go up at the time. While many traders continue to sell their coins at lower and lower prices, the supply increases as the demand decreases.
The Price Is In Our Hands
Just like basic economy, when the supply of something being traded is increased relative to its demand, the price tends to go down. As traders begin attempting to sell of their coins, each person tries to sell their coin cheaper that the person before so that they dont have to wait in line to sell. As a result, people continue to undercut eachothers sell orders. while the buy orders continue to pull out because they see the price dropping.
Any smart investor (in this case the buy order) always wants to “buy” as low as possible and “sell” as high as possible. So as long as the sell orders keep undercutting eachother, the buyers will stop buying until they have seen that the sellers have stopped reducing their prices.
What Time Is It For The "Smart Investor" Once Prices Have Hit Rock Bottom?
What time is it? IheIt’s time for the “smart investor” to buy when prices have reached their lowest point (especially if theres a low amount of supply). Ofcourse this is only the case if the smart investor is trading anything of true value.
The smart investor knows that he is getting an amazingly low deal due to the fact that many people are desperately undercutting eachother to sell. He knows that events such as these are always a major opportunity that he can take advantage of.
So the smart investor waits and see’s how low people are willing to go, and right when the price on something goes as low as possible, the smart investor jumps in and buys it big. Because the smart investor knows it was truly worth more than what he bought it for and that once people are done being scared, they will pay him normal price once again.
So You Tell Me People, How Much More Will Cryptocurrencies Continue To Crash?
Cryptocurrency prices can only continue to go as low as people are willing to sell. If we hold on to our cryptocurrency and demand its true value in fiat currency, then its true value is what we will get.
(Note:None of the information on this article or on this website should be considered as financial advice & livecryptocurrencyprices.com is not responsible for any lost funds due to choices made that were caused by any of the information provided here.)
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