Hey Guys, Yesterday, the world has a high-level input, and Bitcoin holds above US$62,000 marker. And the next day, it has been fallen to US$56,000. Nice to see how people discuss a 10 billion market loss, and at the same time, they know they have just to wait to see the price coming back again.
Institutional investors do not understand the nature of Bitcoin and so it easy to create fear.
Some mining facilities have been cut off from electric power in China, and before the emergency aggregates started to run, investors thought this is the end of mining.
Followed by this fear, they sold their Bitcoins to the markets and created a downsize spiral and a flash crash. As you see, Altcoins got a short season because many of them changed Bitcoin into Ether, for example.
Picture Antpool downtime
This circumstance also shows how investments in Bitcoins depend on the accessibility from mining resources because significant investment is made by OTC services, not at exchanges. A lot of Future Contracts on exchanges rely on the possibility to lock freshly mined bitcoins. Many people who longed for Bitcoin have been canceled their contracts because they did not understand Bitcoin will rebound during the next few days.
Written by : Prof. (Dr.) h. c. Joerg Molt