Suddenly rich and then poor again in a blink of an eye! This is unlikely to apply to any other asset class as much as to Bitcoin & Co. Fantastic price gains of several thousand percentages followed massive dumps.
Like last time in mid-May, when almost all currencies fell almost across the board by up to 50 % and more within a few days. These lightning crashes seem to be a loyal companion of digital currencies, and losses of 50 % are almost just a mini-crash.
In the past, there have been losses of over 80 % over and over. Because prices are controlled by supply and demand, the psychology of marketers is especially important in the case of cryptos.
When Tesla’s founder Elon Musk announced on Twitter that his company would no longer accept Bitcoin as a means of payment in the future, the price collapsed. — While only a few weeks earlier, the opposite news had caused a massive price pump to the upside —