Bitcoin crash, in the end just a fork?

With relish I followed the development in the press during the last weeks. From an over-optimism before Christmas to a doomsday mood in January. Then the reference to the lethargy in January and that it continues in February. But is the Bitcoin crash in the end just a fork?

Bitcoin crash 2018!

Everyone said it and they were right, right? The Bitcoin crash from 16.12.2017 at 16.892,30 € to just over 6.000 € has taken place. They all said that and they were right. Or is there something else behind it?

Viewing angle is crucial!

Many who panic now have too narrow a view. In a discussion a few days ago, things got hot as usual. Financial market specialists discuss with veterans from the crypto sector. Some people were right about blistering and others wrong because the trend was broken.

Here one of the veterans has only two words in his mouth and thus explained relatively descriptively, what is actually matter. The words were "zoom out". The crucial point is that you put the observation on the current moment, but not on what really is.

One must only keep in mind that the Bitcoin course on 01.01.2017 was € 930.89. This means that everyone who invested in early 2017 has made more than a good deal. For example, those who invested € 2,000 in June tripled their capital. Someone who invested in November has not made any notable losses, but is usually still on his entry price.

Hysteria and fear!

Currently one tries with different articles to push the course and then lift again. Volatility is the time when you buy cheap and buy. An exaggeration as it occurred in 2017 has already had a considerable effect. After all, the price has increased sixfold and that does not create a big stock market. But that is partly due to the liquidity and on the other to the hype.

However, it should also be acknowledged that cryptocurrencies are now slowly establishing themselves as an asset class. This is also because the CME now offers futures. This process must take place so that growth is possible in the long term. After all, the real big players like pension funds, sovereign wealth funds or banks are still not really in the market. One must never forget that a crash is part of growth and restores only the natural order.

The fear is caused by the media and since many wanted to get rich overnight, some have bought 16.000 €. Market watchers were out of breath on November.

Arrogance in the market!

Since November I have warned the forums that an arrogance and hubris occurs which is harmful. They laughed at everyone, but now they understand why. Growth has gone too fast and many have only had dollars in their eyes and emotions have determined the price.

Many were afraid that the neighbor drives up with the Lambo and one can only afford a bicycle. However, one should always invest with humility in the market. The market can be irrational longer than you have money. That's an old wisdom.

Many who were the biggest traders in December now have some problems. News such as "Crypto Crypto Currencies" and "All In Cryptocurrencies" should make an investor cautious. If it is this time, then you should either sell or tighten the belt and build up reserves.

Aim and go!

While some are still licking the wounds, investors should slowly start sorting. The market has thinned and the mood is almost at its lowest point. Nobody can say that this low point is still a bit below the current price.

For me it's clear that it could probably get a bit beary now. Many have burned the capital. For this reason, it should be done slowly and collect the debris and see what is still there. Furthermore, everything off the top 100 still has a value below zero.

There are some assets that have potential, but you have to be careful because you never know what business will be like. It's still a big gamble with the full risk, but I'll go shopping again and slowly build up my positions. After all, slow and sustainable growth is healthy and also possible for the Bitcoin, you just have to know when it's over or when you take a break. Maybe that was just a fork separating the wheat from the chaff.