bitcoin rollercoaster

The world of cryptocurrency has been incredibly fruitful for those who got in early. With investments reaching into the gains of hundreds or even thousands of percents, crashes are rare. Yesterday, December 21st, many of the world’s most popular cryptocurrencies crashed with prices dropping to unexpected lows. Bitcoin, the world’s number one cryptocurrency by market capitalization dropped to as low as $12,500, from almost $20,000 only a week prior.


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The entire global market cap of bitcoin dropped almost 20% to $478 billion from $611 billion. Through the night, there were some signs of a possible uptick in the price, but many are still wondering why the dip occurred. Here’s a few possible reasons as to what happened. With the holiday season in full swing, many have decided to use some of that extra cash to put into investments. With bitcoin and cryptocurrency being one of the hottest investments one could make, many have decided to get in. This means that more investors are in the space, and more are beginning to cash out.


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Those who are cashing out for the end of the year gains, in combination with new investors, could potentially leave a large impact on the overall market. Another explanation is the idea that all of the alternative coins in the space are completely dependent on the price of bitcoin. Since bitcoin is the largest cryptocurrency, all other cryptocurrencies depend on it for their price action. With bitcoin dropping, the rest of the market could only follow. A final explanation could be the fact that many are confused by the newest addition to the popular exchange site known as coinbase.


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Coinbase added support to trade the currency known as bitcoin cash, but then was accused of doing so for insider trading purposes. This resulted in the shutting down of trading for several hours. Hopefully all of this confusion can slow down and we can see some stability in the market.

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