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Simon Mugo

What's behind the latest Bitcoin crash?

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Hi James, the latest Bitcoin crash is being attributed to two things, firstly, there are reports that a large amount of Bitcoin worth $665 million was sold within a short timeframe on the BitMex exchange triggering the crash. Another explanation is that most investors are liquidating their Bitcoin holding in order to free up funds for investment in other asset classes such as stocks.

The second explanation is more plausible as the same scenario played out in gold, which is regarded as a safe-ave asset; gold sold-off as investors liquidated their position to cover margin calls on their stock positions. It seems like there is no safe-have asset in the markets during the current market decline, which makes it quite hard for most buy and hold investors.

However, as a trader you can play both sides of the market, which allows you to profit from both rallies and crashes. You can subscribe to our weekly trading newsletter to get the best setups that our experts have identified in the markets for the week.

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