Investors in cryptocurrencies enjoyed almost 200% of profits in 2019. Unfortunately, it turned out very quickly that they had to say goodbye to new price peaks, maybe even for some more time than people expect. It seems that the Bitcoin price has reconciled with a longer parting with the level of 10,000 dollars, and the other cryptocurrencies are moving along with the level of capitalization. At the end of July, the market passed the line, the pace of which can be seen in the summary below, which shows the 20 largest crypto assets in terms of capitalization.

How did cryptocurrency night flash crash affect markets?

It is very rare that the leading cryptocurrencies drop by 3%, 4% or even 7% as in the case of EOS. The cryptocurrency market has this in mind that quick drops can only be a short phenomenon. The rapid gains following them can not only compensate for the losses. The market in the final resolution can be even higher!

Does flash crash point the market direction?

Fast declines can be compensated by the demand of investors who “catch the falling knife”. Speculators, or more specifically, bots that have been programmed to open long positions after reaching the appropriate distance from the average. How should a long-term investor behave in this situation? If the price that has been checked off on the chart seems attractive, it is worth leaving the long-term buy order and keeping the cryptocurrencies securely stored for a long time. In 2019 we are still in a long-term downward trend, at least until new price peaks are reached. It is worth remembering that in such a situation there is a greater chance of seeing lower prices, and therefore the possibility of buying at an even more attractive price.

Night flash crash on cryptocurrencies, especially on Monday could translate into a lot of clues. A quick return to previous valuations means that the market will not decide what to do next. This is not a good prognosis for other markets, which would be more likely to see continuous and calm increases of such deflational assets as Bitcoin. We monitor and continue to believe that they represent, including the most important market share for the average investor.