Bitcoin and Other Cryptos Seeing ‘The Sell Off’? I’m Not Sure I’m Lovin’ It

Okay, let’s get into it — the sell off of 2020 is upon us … Well, not us personally, but our favorite digital currencies, that is. According to a report from the cryptocurrency industry news site The Block, an estimated $369 million worth of cryptos were sold off in a single day.

But Why, Though?

Ah, the magical question that for some odd reason haunts the technological advances of our modern age. Why do these things sometimes happen? Well, consider the following three possibilities as to why:

  • Financial Regulations: Since cryptocurrency is considered a form of investment, it can be subject to certain varying regulations from different countries and states. This may mean slight increases in sell offs in order to avoid any unwanted repercussions.
  • Market Volatility: When it comes to the crypto market, blink twice and things can change in an instant. What could have been up and moving with the trappings of success one day could be tumbling down the next. It’s no wonder sell offs sometimes happen during these turbulent times.
  • Speculators: Some people might be looking to cash in on the latest crypto craze and make a quick buck, which could also lead to higher sell offs as those looking to change their fortunes come and go.

So, What’s the Point?

At the end of the day, the answer to why cryptos like Bitcoin and Ethereum face sell offs from time to time may never be perfectly clear, but the good news is that it’s nothing to fret over. A few extra tokens being traded around the market won’t make much of a difference in the grand scheme of things.

Besides, if anything, a little bit of sell off can be a good thing. It keeps the market fluid, and reminds us that cryptocurrency — just like any other form of investment — can be subject to fluctuations in value.

In Summary

So, the bottom line is: don’t get too worked up over the sell off of cryptocurrencies. Although it’s always wise to stay informed of the latest crypto news, it’s also essential to remember that market volatility is part of the game.

Besides, just like snowflakes, no two Bitcoin or Ethereum trades will ever be exactly alike.