Ethereum collision: Why the prices fell dramatically around October 2011.
In the early days of the Crypto currency, Ethereum (eth) was at the top of the world. As the first truly blockchain open code platform, she opened the path to decentralized applications and smart contracts. However, around October 2011, the price of ETH fell, leaving many investors confused. In this article, we will explore what happened to the ETH prices during this time period and why they fell so drastically.
Rise Bitcoin
In August 2011, the price of one bitcoin (BTC) reached a whopping $ 17 per money. This is mainly due to the hyper about the launch of Bitcoin Blockchain in April 2010. The excitement around the new cryptocurrency was created by the buyer’s market because investors sought to make money before it was too late.
As more and more people joined the scene of cryptocurrencies and began using bitcoin for daily transactions, demand increased, increasing prices. Until September 2011, BTC reached its $ 19 value per cash.
The bubble shoots
However, around October 2011, something strange happened. The ETH price suddenly fell to less than half of its price in August, with about $ 7 to $ 2. This marked the beginning of a significant correction on the CRIPTO currency market.
Several factors have contributed to this collapse:
- Regulatory risks : At the end of September and early October 2011, the Governments around the world began to break on the cryptocurrencies of currencies, citing concerns about launching money and financing terrorism.
- Liquinity crisis : A sudden drop in the price of ETH has led to a market liquidity crisis, which is why some investors are panic sales. This reduced the purchase pressure and added to the fall.
- Speculation and Fomo : As more people noticed correction, guessing and fear of missing (fomo) began to make investment decisions. Many investors have decided to take their money off the table, causing the prices to fall even more.
After
In October 2011, the fall of the ETH has had significant consequences for the cryptocurrency market as a whole. This has marked one of the first major corrections in the history of Bitcoin and Ethereum, which will experience numerous other prices changes throughout their lives.
In the months that followed, both BTC and ETH have experienced significant fluctuations of prices, but have eventually returned to their original values. Today, both crypto currencies are considered to be altcoin, and many investors seek value in smaller cap projects like Ethereum.
Conclusion
In October 2011, the collision of Ethereuma warns the story of the importance of market psychology and regulation. As a cryptocurrency investors, it is crucial to understand the factors that drive the movement of prices and be ready for unexpected events.
Although we cannot change history, we can learn from the past and approach markets with caution and clear understanding of the risks involved.
