The world of cryptocurrency is fast-paced and packed full of volatility, something which gives it such a great appeal to a lot of people across the globe. Trading and investing in crypto can lead to handsome returns in a short period of time, but holding in the event of a crypto crash can result in significant losses for traders and investors. Although, it can also present the opportunity for buying coins during a dip.
This article will discuss everything surrounding crypto crashes from when they have occurred and what the triggering factors were for these sharp drops, the likelihood of another and how you can possibly spot a crypto crash coming.
There is no definitive figure which defines whether or not a crypto market crash has taken place. It is much like evaluating any drastic changes that may occur in the stock market. Sharp and sudden devaluations in the cryptocurrency digital market outside of the previous price trends will likely constitute a crypto market crash.
Bitcoin, is without a doubt the most well-known digital currency, and a huge decrease in the value of Bitcoin is often a good representative marker for a crash.
2009 marked the first decentralized cryptocurrency, Bitcoin, and as of earlier this year there were more than 9,000 cryptocurrencies in circulation.
This market has exploded and come a long way since Bitcoin was first released as an open-source software. However, there have been numerous times where crypto crashing has occurred. The following outlines when some of the most notable crashes took place:
The timeline above details just some of the most notorious crypto crashes which have taken place in the short amount of time since its establishment. There are many more eventful sagas which resulted in Bitcoin and other digital currencies depreciating sharply in a close proximity time period. This emphasizes the volatility of cryptocurrency as a whole.
It is almost certain that a crypto market crash will take place again – it’s a matter of when will crypto crash, not if.
These crashes are a nightmare for investors and traders who may well be uncertain as to how long they want to hold their asset for, but it does provide investment opportunities during a dip. Staying vigilant and on top of the latest news is so important as numerous cases above show that even rumours are enough to spark insecurity and worry throughout the community.
We appreciate that staying on top of the news for numerous coins which may be of interest to you is difficult. This is why we built StockGeist.ai…
The StockGeist.ai platform provides real time crypto sentiment analysis of over 400+ of the biggest cryptos. With just a few clicks you can see the positive/negative sentiment of a crypto of your choice, data that is extracted from textual messages across social media platforms.
You can also view and read the latest news articles in one place. Both of these features, in addition to many others on the StockGeist.ai platform, provide you with crucial information of the crypto market crowd psychology and save time by removing the need to scroll through your social media.
We advise all traders and investors to utlilize the innovative power of analyzing real time crypto sentiment to help identify any possible triggers that a crypto market crash is on the horizon.
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