Bitcoin these days is following a downtrend, and it is causing huge pressure on sellers as compared to the buyers. Reports reveal that bitcoin is still handling an immature market as it is controlled by more individual investors and traders instead of big organizations that can easily bear the price swings. Hence, as compared to the other mature markets, the bitcoin always suffer fear of missing out and it has a great impact on the volatility of the asset.
The hidden game of fear and fall of bitcoin:
Experts reveal that bitcoin may fall further for some time. Now with this news what is more important to observe around is that most people are hyped up. Investors and sellers all have shifted their attention to Bitcoin, and the regulators are using special magnifying glasses to monitor the market in fear. The market gets flooded with the analysis performed on different angles by cryptocurrency businesses, private persons and exchanges as well and people in the market become more and more anxious about the future of this decentralized eco-system. The same impact was seen recently when news was circulated that Twitter and Facebook are banning crypto ads.
The true fact is that people get scared even with small market shifts, and within a moment they start acting like a herd. As prices start falling down, people get worried more, and they start selling coins instantly on any value to lock little profits before the price falls further down.
More noise is the market was created when bitcoin diluted into multiple coins such as Bitcoin Gold, Bitcoin Cash, and Bitcoin. This scenario made the market more unpredictable, and people started doubting their own investments. It was a situation where no one had a clear idea of which coin they must support or invest in and which one must be avoided. The situation was more critical for beginners as they got exhausted by the unexpected shifts in the market. Experts say that although dilution of bitcoin cannot be considered a good choice for the price factor if we look at the long-term impact of this shift in the market, it will support the ecosystem. It is a step towards the growth of cryptocurrencies, and it has a long way to go. No matter what kind of investor you are, cryptocurrency demands some patience to chase real profits from the market. It is better to stay updated about what is happening around, but there is no point in taking wrong decisions when you are panic.