Crypto is currently tanking in specular fashion. Holding must feel like living in Southern California, waiting for the next 'big one'. (Well, I am a holder - the princely sum of £50, which quickly became £55, and is now probably nearer £40). It's still very early in most of USA, and Sunday afternoon in Asia. It's hard to imagine many are even looking, let alone trading amounts that could cause these shifts - I was just on a news site that had a ticker in the banner and it caught my eye.
Fiat investors have gotten quite comfortable to low volatility markets in recent years. When markets are manipulated globally as they have been for so long, people have gotten complacent. A "Big one" occurred in the Fiat system in 2008. As is the habit in the Fiat system, the Can has been kicked multiple times down the road. The European Sovereign debt crisis in 2012 accrued further Can-kicking. Fiat investors may have a lot of confidence in Can-kicking, but they are advised to watch out for potentially another "Bigger one" down the road. The Fiat track record speaks for itself.
For those new in Bitcoin, welcome to the actual Free Market!
it is indeed an Open 24hr/365 day trading Market trading round the clock non-stop.
In actual Free markets, there are No Stop Gaps
No "Circuit breakers", or "trading halts"
No man behind the Curtain
Trading is not "halted" after 7% drops.
In Free Markets, Price is a Signal
Truth is reflected in Price rather quickly.
If there is a major power blackout in Xinjiang affecting the Bitcoin Mining Hashrate, the Price reflects this fact as well as other factors rather quickly. The Market responds.
Further decentralization of Hashrate occurs which strengthens the Network.
A fledgling Asset, with a Sharpe ratio over 1, 200% returns per year and 15-40% yield, does not take the Crown of a 5000 year Store of Value with NO volatility.
For those with weak Hands, one may decide to wait 13 years when Bitcoins peak volatility is on track to drop below fiat volatility (EURUSD). You may calculate the price of the Asset at that point noting its adoption growth and wait.
(For those who are interested, the fundamentals of the Network may be analysed by using on-chain analytic tools such as Glassnode