Black Friday On The Cryptocurrency Market
The prices of almost all cryptos nosedive. The holders go crazy, lost in panic. Everyone sells everything. Only stable coins record growth. But why?! We present you our theory – Black Friday is coming, that’s why!
The big drop
The last week was tragic for the cryptocurrency market. Almost all prices started dropping, some massively, decreasing even by 25%. All the investors began panicking and some withdrew their money from the exchanges. The crypto world has been knocked off balance. Below we present how the first 10 of the highest rated cryptos (ranked by the market capitalization) look. As you can see, every single one of them has recorded a decrease.
23rd of November
Circumstantially, Black Friday is upon us and the prices are dropping in many other industries, too. This American special day, which takes place the day after Thanksgiving, is becoming more and more popular all around the world. Many stores and service providers offer favourable sales and low prices. Some extend the deal for the whole weekend or even a week, making it a special time for customers. Could it be that cryptocurrency market will have its own Black Friday?
Obviously, as always, the crypto that is the most discussed by the media is Bitcoin. Its price has dropped by around 16% in the last week alone. From 6 370 USD on 13th of November, it has gone down to 4 475 USD today (November 20th). That is a lot for a crypto that has been pretty much stable since April. No wonder that Bitcoin holders are first to be panicking on social media and various forums, and finally, selling their coins. This obviously causes a further decrease in price.
The real causes
All the cryptocurrencies influence each other very directly. So as it could have been predicted, altcoins recorded big drops as well. Whereas suspecting that the cryptocurrency market following the trend of Black Friday is nothing more than banter, this special day could have actually influenced the digital asset prices a little bit. After all, people spend their money during Black Friday. So they need to have some money to spend in the first place. Before this day, crypto holders might have withdrawn some funds from the market, which later caused the snowball effect. And that’s how the massive drop began. At least that’s one of the theories.
Image from coinmarketcap.com.
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