The Crypto Black FridayCrypto prices have been crashing lower in what is seen as a Black Friday for the market as more and more traders reap their yearly profits
It has indeed turned out to be a Black Friday in the crypto market with the bitcoin market leading the crash as it fell by over $3,000 at one point in time and continues to look weak. But the crash was not only in the bitcoin market but spread across many other cryptocurrencies as ETH prices also dropped below the $700 region and moved towards the low $600s before recovering and it now trades just above the $650 region.
Prices Crash Lower
Litecoin prices have also fallen by around $100 before recovering and trading just below the $250 region as of this writing while Ripple prices have also dropped as it has been unable to hold on to the gains that it made the early morning. The Microsoft backed IOTA coin also dropped from around $5 to close to $1 at one point of time before recovering and trading just below the $4 region as of this writing.
There has been an obvious panic in the markets as we are seeing more and more traders taking profits after the prices have had a huge run for this year. As we head into the end of the year, we are seeing the traders and speculators taking some profits off the table and also trying to diversify their holdings before they move to the new year.
The bitcoin market had been the darling of the traders over the year 2017 but as we head into 2018, doubts are being raised about the continuing bull run in the bitcoin market as the introduction of futures trading and the possibility of shorting the bitcoin has led the speculators to think again. Also, we are seeing more and more countries trying to regulate the market and bringing the investors and speculators under control and this is one more reason for them to look to diversify to other coins. This has led to people selling off bitcoins and this has led to some panic and the snowball effect of that has been affecting the other coins as well.
The stopping of BTC trading at one of the largest exchanges, coinbase, has also added a bit to the overall panic and led to even more selling. We believe that this Black Friday is only a passing phase for the crypto industry and we should see the industry stabilizing and the prices back to consolidation phase as we head into the New Year. We believe that this is just a phase of profit taking which is leading to a correction in the prices and this is a healthy part of any large uptrend. This is likely to go on for some time before the traders begin to realize the fundamental value of each coin and start buying again which should spur the next bullish leg.