[NEWS] Game-Over-theory-BS & market-update

Hi all!

Sorry, for the delay of translation. Still I'd like to share the article in english, too.
Monday I was writing about a possible dip below the 200 billion USD mark, which shickingly became reality a few hours later. At least partialy, as it did not went that far down with the prices.

But why are the prices currently falling so much? Hadn't we already overcome that?

Obviously not. I'll spare you the technical analysis (s) here. Not that I want to deny them their raison d'être, but to understand the market they are not the tool of choice. This is particularly well recognized by the fact that the circle of technical analysts is very similar to the group of people for whom everything is going bearish. Also, many articles of alarmist appeal to just those technical analyzes. Speaking of the scare tactic, "If Bitcoin falls below $ 5800, that means game-over!". This wonderful headline was often to read and picked up lately. This statement only makes sense as long as we are in the investment game.

From the point of view of the market, such a statement is pretty stupid. Of course, one can say that with a selling price below $ 5,800, companies operating the mining farms can no longer work profitably. One can also assume that in the consequence the network Bitcoin would not continue to be operated. That sounds logical and conclusive, right? What is missing in this consideration but completely is the fact that Bitcoin was traded in early 2017 for around 1000 USD. The years before for much less. Bitcoin was not game over, so why should that be now the case? Because operators of mining farms and technical analysts would like that?
Looking at history, it is unlikely that Bitcoin Game Over will work. Though I wouldn't rule out this possibility. Adding to reasonable doubts about that game-over-scenario, the market isn't bearish if you compare prices of today with the ones a year ago.

Two more comments on the current market:

Currently, few trades are completed. This may be due to lack of interest and disagreements over the price. Those who can afford to hold positions will wait for better prices.
When the price goes down, so does the market entry barrier and the risk to institutional investors. Whether that's good or bad, once put there. For whom the current situation is positive, but it becomes clear.
If I were an institutional investor, I would want to eliminate the big miners who act as big players in pricing before entering the market. But that's another thought.

Please, question the news concerning cryptocurrencies that are thrown at you. Try different perspectives on those news and don't just follow the herd.

Yours JP