What Caused Bitcoin And The Crypto Market To Crash On August 17th?
In this post, I'll look at the factors to what caused Bitcoin and the wider crypto market to fall nearly 12% after a rather uneventful and flat summer. And I'll also touch on what happens next with Bitcoin and crypto and whether now is the right time to buy.
After a notoriously flat and boring summer in the crypto market, things certainly heated up On Thursday August 17th.
In just 24 hours, Bitcoin had dropped nearly 12% and the wider crypto market saw significant drops as money flooded out of Bitcoin and the crypto market.
But the question is why did the drops occur after such a quiet summer?
What led to the drops was a chain reaction of events that snowballed and caused $1 Billion be wiped out practically overnight.
What started the falls was threats from the Fed suggesting that further interest rate hikes might be needed in order to tame inflation.
The next piece of the puzzle was Chinese property development giant Evergrande filing for bankruptcy in New York sparking fears that failures in the Chinese real-estate sector could spill into other markets.
The final nail in the coffin was big-money holders of leveraged crypto derivatives started to get liquidated as options and futures contracts began to expire worthless hence pushing prices down further.
Want to invest in crypto the right way and get your portfolio ready for the crypto bull run? Then why not join Teeka Tiwari's Palm Beach Letter for 75% off the normal price here.
These were the three main factors that caused the black Thursday crypto meltdown that saw some of the biggest daily falls in 12 months.
But the question on everyone's minds now is, what happens next for Bitcoin and crypto?
What Happens Next For Crypto?
I think the remainder of 2023 could be a bumpy ride for Bitcoin and the wider crypto market with further interest rate hikes possible and with talk of a possible global recession and even a major stock market crash being talked about, the remainder of 2023 is likely to be volatile for crypto and Bitcoin.
But I think as we head into 2024 and we near Bitcoin's havening which is due in April or May 2024 and with the SEC likely to approve Fidelity and Blackrock's Bitcoin spot ETF's in the coming months, I think we'll see the crypto bull run begin at some point in the next 10 months as billions of dollars pour into Bitcoin and the crypto market a s a whole.
Is Now A Good Time To Buy Crypto?
Whilst I am not a financial advisor and this is not financial advice and this should be taken as educational and informational purposes only, I think now is s good time for investors to put money into Bitcoin and other crypto projects they deem as having a sound future.
Whilst the crypto crash caught everyone off guard now is the time the savvy investors will slowly take advantage of lower Bitcoin and crypto prices in preparation for the crypto bull run in 2024.
And according to Teeka Tiwari who is a leading crypto expert, he believes that the next crypto bull run could be the last as crypto heads towards mass market adoption.
So whilst the best time to get into crypto was when Bitcoin was trading for pennies, now is the next best time for investors to get into crypto as Michael Saylor who is the worlds largest holder of Bitcoin says that we are still incredibly early for Bitcoin and crypto.
To wrapt it all up, whilst the remainder of 2023 could be volatile for Bitcoin and crypto, positives lie on the horizon with the looming crypto bull run expected in 2024.
Want To Get Notified When More Posts Like This Are Released?
Then why not join the crypto insider newsletter! My weekly crypto newsletter aims to keeps crypto traders and investors up to date with the latest crypto news and information as well as alerted when new posts are released on the blog.
You can join the crypto insider newsletter by entering your name and email here or by clicking the button below.