Why did cryptocurency crash?

Please understand these are my thoughts, not investment advice. I’ll tell you right now. I believe this was the new floor just found. Also, I think the major crypto crash is over with. What happened in crypto was, first, the obvious; China kicked out the crypto miners in their country.

It cost lots of money to move, so the miners had to sell their cryptocurrency to pay for it. The crypto miners knew what it would do, so the miners all raced to get the most cash that they could, giving up the least amount of crypto that they could.

China went after crypto, which caused the miners to cash out what they needed, pack their equipment, and get it set up in another country. They will probably come back online in under a month, I believe.

A large amount is moving to a location with a massive surplus of hydroelectric power. And a lot of people with crypto in Chinese exchanges cashed out.

Then the people that are new to crypto and don’t know these fears happened many times in the past sold. Sure this is causing a big scare. Shoot, it probably broke some crypto records, but I’m sure a large amount of those sold after they got sleep deprived checking their crypto.

I’m sure there are a lot of those that might have sold other assets to buy crypto, some might have put their rent money in, some of those situations will cause a fast pull out in a crashing market. It is an unfortunate situation.

I was there quite a few years ago. It was spring of 2013, bitcoin went down hard, it was something like 30 dollars, and I had bills to pay. Sold around 27 bitcoins, I probably got less than one thousand dollars. Today that would be around a million dollars.

The thing is, now big bags of crypto that wanted to sell sold, they can’t do it again as bad at least. Still, I don’t believe that they would like to. I’m sure they are probably buying back part of their selloff. That way, they still hold and have their cash.

So now, most crypto owners are serious about it because they didn’t sell During the crash, and if they did, they repurchased it much cheaper.

If so, then they would be happy with pockets full of cash and the same amount of crypto. They would not want to sell now because they would like to see their coins get back to the original value as their crypto mining machines come back online at their new locations.

That makes me wonder if this will be the most stable upward climbing floor we have ever seen or is someone building it up to dump more? I hope the first is true!

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