Topic: Why we need price crashes and panic selloffs (Read 1345 times)
People who took out mortgage or took on leverage might go bankrupt due to the crashes. I daresay they won't like any crashes no matter how good it might be for the overall health of the market.
I agree with you, the market need some crashes to redistribute coin from the weak hand who panic sell at every price crashes to the strong hand who believe in what they are holding and know surely the market will bounce back after every crashes.
This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
Yeah you mean a kick off before going high in the sky just like the rockets flying high. As we all know it needs a countdown and usually the loudest countdown starts with 10 down to 1. So basically you can hear many rumors here that the countdown for market price kick off is almost there and one will going to regret if one will not going to invest now. The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
The price crash is good as you have said and it is not new in cryptocurrency. It may only be prolonged in some cases as we currently have it. In this case, some people will lose by doing panic sale while some will make good gain by waiting till the end when another bull run will emerge.
I agree, we really need price crashes and panic sell, and also it's part of the cryptocurrency, so it's really inevitable. We need it to earn, we can still earn without big crashes, but we can earn big if there's price crashes. I guess it's up to you if you'll take advantage of it even if it's hard. And also you can just buy when the price crashes and wait till the price rise again to earn profit. This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
So you support some scapegoats to feed the sharks.
As per your statement it appears as if it is good to sell to small innocent investors at high prices when their is bull phase. And when huge money of small investos is engaged in the market then big sharks should start playing their cunning role.
They immediately start selling at high prices and as a result prices start falling even crashing. And as suggested by you; now strong hands should buy; who are strong hands again those big sharks.
I think it is not sympathetic statement. It may be good for you if you are a big investor but not good for small people like me.
The price crash is good as you have said and it is not new in cryptocurrency. It may only be prolonged in some cases as we currently have it. In this case, some people will lose by doing panic sale while some will make good gain by waiting till the end when another bull run will emerge.
in my opinion it is a very natural thing when there is bad news and after that effect on the price of cryptocurrency which is in place of exchange according to me that have become very reasonable, it may be many new trader who is afraid to experience loss very much so he choose to securing the assets they own.
We don't need them but it is normal on crypto, panic selling is for the week and they really don't understand what to do. beginners deed.
Well if you really want to be successful here you don't need the word panic and just be cool.
Be patience and have the guts to hold.
in my opinion it is a very natural thing when there is bad news and after that effect on the price of cryptocurrency which is in place of exchange according to me that have become very reasonable, it may be many new trader who is afraid to experience loss very much so he choose to securing the assets they own.
It is completely inevitable, many people think that everyone in the forum will become rich by holding their coins, and while technically that could be true, the major players that want to enter in the market of bitcoin are not going to allow that so they are going to manipulate the market so the weak hands sell for a bad price while they buy those coins, it is that simple, which is why we must avoid falling into that trap and not sell our coins to them.
They just want those who are new to the market be afraid of the price and think twice of holding their coins for a long time. If you see what is happening now, the price just plunge again and many are selling because they are afraid that the price will plunge more contributing to more dump in price. The whales may have started it but the retail traders are the one who always finish it and they are eaten by the whales. Whales will accumulate more and then later on dump again.
It is quite funny though, but there is still some sense in it. Maybe the seldom crashes and panic selloffs can rid the market of the possible future dumpers, or who may always be responsible at spreading FUD about Bitcoin and other cryptocurrencies.
Maybe the seldom selloffs of cryptocurrencies helps determine that the market is still alive. When there are selloffs there are also buyer waiting for the price to drop down. This is where the buy and sell occur which is good for a healthy market.
This is just a thought that occurred to me while reading some posts around here, feel free to discuss it or even criticize it. So if we want Bitcoin to rise in the future, we need it to crash first and many wannabe traders to sell off their coins at a loss when the price is low. If people don't close their positions in panic now and just wait out bad times, they simply won't let prices grow later because they will get out whenever the price rises just enough for them. But if they fix their losses, they will no longer have bitcoins to record minor profits and thus drag the price down in the future. As a consequence, the price can surge higher without a lot of selling pressure at bigger figures when the hype and buying frenzy begins anew.
The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
It is completely inevitable, many people think that everyone in the forum will become rich by holding their coins, and while technically that could be true, the major players that want to enter in the market of bitcoin are not going to allow that so they are going to manipulate the market so the weak hands sell for a bad price while they buy those coins, it is that simple, which is why we must avoid falling into that trap and not sell our coins to them. The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
We need price crashes and selloffs because they can benefit from it. Other investors use this strategy to make a huge profit in the long run of there investment.
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The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
Think of it as a train travelling figure. Everyone would do their best to buy the maximum of where they would dream to go. It is just like in Bitcoin that these crashes happens often, because it is sort of an opportunity for everyone. Not like everyone can invest in stock markets immediately anyway, but the idea here is that it brings up the doors to everyone wanting to earn in the future. Some might throw few cents in here but then they manage to look into their portfolio that it has been solid green in years.The bottom line is that it is kinda required for Bitcoin to crash occasionally for the prices to rise higher eventually.
Maybe your analogy is good enough to explain the crashes in the market but i do believe that crashes only happen due to certain people who are creating fake news or negative speculations which makes people to panic selling their coins and the market price will obviously drop.
Very interesting idea! And it is very true - if you look mathematically, the serious fall of the market make it possible to quickly come to the optimal purchase price.
The volatility nature of cryptocurrency makes it difficult for the cryptocurrency prices not to take a swing at intervals.
This is what some investors should have at the back of their minds.
If they have full understanding of this, I don't think anyone would want to panic sell at loss.
This is what some investors should have at the back of their minds.
If they have full understanding of this, I don't think anyone would want to panic sell at loss.
I do agree on that, the volatility of the market is the reason why cryptocurrency prices is swinging in the market and most of the investors should know be studying the situation in the market before investing a huge amount in order to determine if they will be gaining profit or not from the coin they are interested to invest.
The volatility nature of cryptocurrency makes it difficult for the cryptocurrency prices not to take a swing at intervals.
This is what some investors should have at the back of their minds.
If they have full understanding of this, I don't think anyone would want to panic sell at loss.
This is what some investors should have at the back of their minds.
If they have full understanding of this, I don't think anyone would want to panic sell at loss.
I think market will constantly shake off weak hands and panic sellers from the market, so that whales or big players can accumulate more bitcoins for the next bull run.
As long people will be selling their bitcoins in fear of loss, price will always decrease, as there can't be whole market of holders, this is impossible.
This is common to the whole market not just btc actually, and i assume this situation is unlikely to change.
As long people will be selling their bitcoins in fear of loss, price will always decrease, as there can't be whole market of holders, this is impossible.
This is common to the whole market not just btc actually, and i assume this situation is unlikely to change.
It is quite funny though, but there is still some sense in it. Maybe the seldom crashes and panic selloffs can rid the market of the possible future dumpers, or who may always be responsible at spreading FUD about Bitcoin and other cryptocurrencies.
Maybe the seldom selloffs of cryptocurrencies helps determine that the market is still alive. When there are selloffs there are also buyer waiting for the price to drop down. This is where the buy and sell occur which is good for a healthy market.
We need the price to crash in order for us to hoard coins in a cheaper prices and in this way we can earn more profit when the market prices goes back to normal.
In fact, the ups and downs are BOTH necessary for the market to discover how much it CAN go up and down. If it would go only up, nobody would know how much it would possibly go down, should it ever go down. If it would only go up, at some point it would possibly crash down to nothingness.
Of course we need the price to go down. But not to clean the market from panic sellers. We need to reach a stable price, because this last uptrend was manipulated and that made lots of people to buy Bitcoin. This correction is very healthy.
reaching a stable price would be a dream. but is it possible? Jump to: