I'm really curious if somebody here could venture a guess about the reasons for the sudden drop
One could probably write pages on the topic, but here's my one sentence summary: reality didn't match the hype, and markets are coming to that realization. Corollary: hype-driven price goes up much more slowly than reality-driven drops.
Simplistic though it might be, it's the reason for most big drops in equities markets. That biotech that might be on to a cure for prostate cancer? Up and up she goes...until the FDA trial says it doesn't work. New battery tech company says they'll have batteries that can drive you SF->NY and a full charge takes 30 seconds! Buy, buy! Oh, BTW, the batteries will cost $10K/kWh. <effect: dying_PacMan_sound/> New way of paying for things that will eliminate cash, and all the geeky kids are into it? Those nerds know what they're doing, right? 'cuz I sure don't, and I don't want to miss out! Oh, all I can buy are illegal drugs of unknown quality, and I can lose all of my money if I forget my password or make one tiny mistake and the hackers get it? I bought in at $19.5K, why isn't it still going up? Be glad it's only down to $4500.
One could probably write pages on the topic, but here's my one sentence summary: reality didn't match the hype, and markets are coming to that realization. Corollary: hype-driven price goes up much more slowly than reality-driven drops.
Simplistic though it might be, it's the reason for most big drops in equities markets. That biotech that might be on to a cure for prostate cancer? Up and up she goes...until the FDA trial says it doesn't work. New battery tech company says they'll have batteries that can drive you SF->NY and a full charge takes 30 seconds! Buy, buy! Oh, BTW, the batteries will cost $10K/kWh. <effect: dying_PacMan_sound/> New way of paying for things that will eliminate cash, and all the geeky kids are into it? Those nerds know what they're doing, right? 'cuz I sure don't, and I don't want to miss out! Oh, all I can buy are illegal drugs of unknown quality, and I can lose all of my money if I forget my password or make one tiny mistake and the hackers get it? I bought in at $19.5K, why isn't it still going up? Be glad it's only down to $4500.