Reasons for Bitcoin's fall in August 2024: is it a crash or a correction?
The cryptocurrency market has always been considered the most volatile segment of the financial market, but with each passing day, the trend brings new surprises.
Just a month ago, we experienced the fall of the leading cryptocurrency Bitcoin to a minimum of 55,900, and now, at the beginning of August 2024, a new minimum has formed at a mark below 51,000 dollars per coin.
As usual, panic gripped the cryptocurrency market, with many investors trying to get rid of assets that were falling in price.
What should you do in this situation? Sell at a loss or, conversely, buy coins at the most favorable price?
To make the right decision, you need to understand the reasons behind what's happening and whether there are preconditions for a collapse of the cryptocurrency market.
Crash or another cryptocurrency correction?
After the leading cryptocurrency lost 20% of its value in just 5 days in August, it seems like a crash is inevitable, but what are the reasons for the crypto market crash?
To understand that the situation is not so critical, one should first analyze the history of Bitcoin price movements:
As you can see, today's situation is far from new; we already observed a similar scenario at the end of 2021, when Bitcoin fell from $57,400 to $41,500 in a couple of days, a drop of about 38% over two days.
That is, nothing out of the ordinary has happened yet, and the scenario with a price drop is quite typical for Bitcoin; there have been worse times.
Perhaps there is a special reason for the fall now?
If you analyze the current news feed , you will not find any compelling reasons for Bitcoin to fall.
It is increasingly reminiscent of a game played by bears who are trying to trigger a downward trend and are playing for a fall.
Perhaps one of the major players is trying to lower the price so that they can subsequently buy cryptocurrency at the most favorable price.
There's a high probability that Bitcoin's price will fall below $50,000, but will ultimately rise and form a new high. There are currently far more real reasons for growth than for decline, and the current downtrend is artificial.
So don't panic, but rather take advantage of this opportune moment to increase your cryptocurrency investments.
