According to statistics, around 25% of the investors will lose money if BTC drops even further from its current levels. With 26% of US investors owning BTC, it makes sense to think that the widespread effects of the BTC crash will affect most of the investors. Just last year, only 23% of US investors owned BTC, which tells us that a 3% yearly increase with witnessed in BTC buying.
If any further sell-off happens in BTC, it will make this already volatile asset a lot more volatile. Furthermore, there is not much that can be done by the US regulators when it comes to BTC and regulators. If such a drop had happened in any major stock, the US regulators would have already moved in to contain the damage. But this time, the US investors will be left on their own since no one can really control BTC.
However, a senior analyst from Onada believes that BTC has the potential to recover from its flash crash. But it still remains to be seen what really happens in the unpredictable crypto market.
Bitcoin Gaining Mainstream Attention
Whether people understand the concepts such as blockchain or cryptography is another topic. But one thing is for certain, and that is the popularity of BTC among the masses - Almost everyone knows that there is a thing such as BTC, which goes to show how it has gained mainstream attention.
According to experts, almost 50% of the BTC investors are new & started during the past 12 months. In other words, 50% of the investors actually bought BTC at all times high, which is really troubling news. With such a drastic drop in BTC, it seems more investors will give in to the pressure and eventually sell off their BTC holdings. If such a sell-off happens, it will just create a cycle in which BTC keeps crashing to new lows!