Bitcoin’s downfall to 50-day minimum

Bitcoin demonstrates its volatile nature once again after reaching prices below 7,000 during the past European night (29-30 March 2018). At the press time it has returned to $7100 on Coinmarketcap.

While the downfall is widely shared throughout the social media and news agencies, indicating, as some observers would say, the psychological importance of the price barrier, Thomas Lee from Fundstrat advises not to worry and hold (“HODL”, the crypto traders’ meme originating from a typo) during the dips. This partly corresponds with the older advice of investor Brian Kelly who told to sell when everyone buys and buy when everybody sells.

Meanwhile, the Bank of Montreal in Canada has blocked absolutely all payments related to cryptocurrency exchanges. The efficiency and exact goals of this measure are in question, the organization simply claims that Bitcoin is too volatile. This ban might have contributed to the fall.

Interestingly enough, the closure of two cryptocurrency exchanges in Japan has only managed to cut the price $400 lower, so one should be careful when connecting the dots in this field. Sometimes there is no rational reason in drop or growth at all, as noted by Ben Carlson from Ritholtz Wealth Management.