Bitcoin crashed because professionals cashed out, making a buck from last-minute amateur investors
The largest cryptocurrency bitcoin surged to $20,000 in December. Its rapid growth was due to common folk deciding to invest in the hope of making a quick buck. It was a time for professional investors to sell.
“Many people behind bitcoin and cryptocurrencies as a whole understand that the skyrocketing prices in the last few months are linked to a cash inflow from mass-market consumers. Even pensioners wanted to invest,” Georgy Verbitsky, managing director at eToro, Russia and the CIS, told RT.
Bitcoin hit $20,000 last month, breaking new records every day. But this week, a sell-off swept the cryptocurrency market, and bitcoin slid below $10,000 on Wednesday.
“Experienced investors knew that the bitcoin honeymoon couldn’t last forever. Those who catch the last train are usually punished by the market. Big-time miners and investors understood that they needed to diversify, that they had to get some fiat money.
https://www.rt.com/business