I am a strong believer of cryptocurrency. Finally, its recovering from all the bad news in the market for last one month. All related to regulations and hacking. Many of you may not be knowing whats wrong with cryptocurrency which leading to crash. Here i have listed the major reasons for major crash in january and February 2018.
Cryptocurrency prices are largely driven by news events.
Let's talk about some bad news which recently resulted in a huge price drop in the value of Bitcoin and other altcoins in February.
- Indian Finance Minister, Arun Jaitley, restricting the legal use of cryptocurrency.
- Facebook banned the ads for Cryptocurrency and ICOs.
- JPMorgan Chase & Co., Bank of America Corp AND Citigroup Inc also halted the purchases of Bitcoin and other cryptocurrencies on their credit cards.
- UK’s largest bank Lloyds Bank announced that they will not allow cryptocurrency purchase through credit card issued by them.
- Discover credit card has banned purchasing Cryptocurrency. Some cryptocurrency-backed debit cards dropped from Visa network. MasterCard removes cryptocurrency Debit Card availability outside European Economic Area (EEA).
- U.S. Securities and Exchange Commission who freezes the assets of a Texas-based initial coin offering that claimed to have raised more than $600 million.
- Japanese Cryptocurrency Exchange CoinCheck also get Hacked and $530 Million NEM got stolen.
- The U.S. derivatives regulator recently said that they will hold two meetings to discuss the procedure and operational controls for listing and trading digital currency futures.
- South Korea and China are making it tough to gain from cryptocurrency trading.
- China has banned Cryptocurrency-related advertisements from Chinese websites. Chinese search engine Baidu and social media platform Weibo already stopped showing cryptocurrency and ICO ads.
- China has already banned the domestic cryptocurrency exchanges and ICO in September 2017 but they now banned any purchase by Chinese people with foreign cryptocurrency exchanges as well from February 2018. They are trying to reduce the financial risk as per government's statement. China will step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs.
This is an excellent summary which lists the negative news surrounding the downturn.
It would be good to see a list of the positive developments as well.
Where I live, Switzerland, the authorities are doing all they can to promote the growth and use of the blockchain and to position themselves to be the number one crypto nation.
Such projects as cryptopolis are helping to lead the way by offering a liaison between government and crypto projects.
An excellent example of integration with Fiat can be seen with the lykke platform.
Please, please please, place all your coins in a digital save on the internet, what can go wrong?
Thanks for your comment. I will come up with a new blog post with all the positive news which is adding up now to raise the value of Bitcoin and all other altcoins.
Never forget that the news aren't really playing a big role in this market :)
So what is the additinoal factors which is driving price? Do you think whales are paying bigger role compared to news?
It's more about emotions and how people with big influence behave. So whales are pretty right. But don't forget things like this: https://steemit.com/news/@genblockchain/is-this-the-crash-my-experiences-say-or-genblockchainnews
nothing to worry btc will reach to 20k again
I agree
You are right and if you go watch my video you will be surprised how and why. I could change the way you are buying right now. check it out and let me know what you think. https://steemit.com/cryptocurrency/@probizranker/bitcoin-major-historical-event-about-to-happen-soon
This comment has received a 3.13 % upvote from @speedvoter thanks to: @jassi.
Great summary - followed...
Thank you for your support.
Your observation is nice but I think that there is much simpler reason for BTC drop. Market went too far too fast and many people cash out their gains and wait for this drop.
I agree @cicbar this was a normal retracement as the price had spiked too quickly we have seen this many times with bitcoin over the years but as the technology is still evolving the long term trend should still be on the way up. Although I'm more interested by the innovation than the price.
your in it for the tech. Riiiight. ;)
hahaha jk man.
You spoke my mind succinctly! Couldn't have said it better @cicbar
It is absolutely true that price was up many fold without any reason. But people were still interested in purchasing at high price. The one point apart from all the regulation and hacking which I missed is that cryptocurrency is not like regular investment where investment is done by big agency, professional investors and venture capitalists. They have good understanding of the market and future. However, cryptocurrency is different. This is because most of the investors in this domain is common man who purchase cryptocurrency in hope to encash these in coming future when price will go up. However, common man don't have lots of money which they can live without. They are always nervous when price goes up or down. Any bad news like one of above spread in market which makes these people very nervous and they want to save their loss. So they sell their cryptocurrecy if market is going down. Similarly, if market is too high, these small investors thinks that they are done with current gain and lets sell whatever they have to make quick gain. They hope that price will come down again and they can purchase it later (just like trading which is very easy now a days because of easy interface in multiple exchanges like GDAX and Binance). So huge number of such small investors like us, we are always going to see great market volatility and most of those fluctuations will be because of the market news. Any sudden bad news can stop currently improving prices of cryptocurrencies.
be careful when you say it is recovering. If you look at the last few weeks we have gotten a little bit of upside and then right back on its correction. We might have just a little bit more left to go. I hope not but i think it is good be stay cautious. These are deff great prices at an almost 50% discount or more. So in the long run i think this is great! Enjoy!
Yeah, still price is very low and its not recovered completely. It may be a good opportunity for newcomers. My advice should not be considered as financial advice as this is just my personal opinion and I am not responsible for any loss of investment. Personally If I have some money which I can leave without then I will take benefit of this low market and buy some Cryptocurrencies. Litecoin would have been on top of my list but I would have also consider Ripple, Stellar Lumen, Verge, IOTA, Tron, Ethereum and some bitcoin. I would have keep looking at price and will make decision when should bet my luck on purchase. Price may still go down further. So keep watching the price and if you are ready to invest then catch the lowest possible price. But remember cryptocurrency investment is a risk and such crash can be in future as well. But gain can also be many fold. So its totally game of luck.
gotta have them disclaimers in there!! hahaha and Whoa look at the market today! Litecoin up 30% over night! Thanks for the reply and i agree with you completely. This is a great opportunity.
Yeah, Litecoin is skyrocketing. This is because of the scheduled launch of LitePay. For more information please read this article.
https://steemit.com/litepay/@sumanpuja/litepay-is-coming-one-of-the-best-time-for-litecoin-lovers-don-t-miss-the-opportunity
Also there is an upcoming fork of litecoin. Lick it or not. I do believe it is having an effect on the price.
Yes, you are right. I have written about it in my recent blog article.
https://steemit.com/cryptocurrency/@sumanpuja/get-ready-for-some-free-cryptocurrency-plan-making-10-litecoin-cash-every-owned-1-litecoin
The coins tend to suffer the most in the first two to three months of the year but it later picks up and goes on well take a look at the market around this time last year you would notice a little instability in price then notice how it has gone over a 1000% before the end of the year. So I would say give it time and it will become more stable and grow
Yeah, you may be true. This may be because this is the time for tax filing and everybody may be hiding their potential gain and they don't want to get caught into trouble with tax authorities. One tax season gone, everybody will come out to play more and take risk to gain many fold.
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Yes! I agree. Thank you. I'm tiered of hearing about people looking at charts and talking as if they can predict the future price based on patters. That is ridiculous, this is not black jack. There are way more factors that effect the price. There would be a ridiculous amount of rich people if pattern recognition was they key to figuring out the future price of a cryptocurrency or stock.
Since when the new actually explained what happened let alone "driving" the market?
IF it did "drive" any market, it is no longer news.
Most news, if they are actually correct or accurate, is "a day late and a dollar short" so to speak.
IF you invest in response to new stories, you will almost always do the wrong thing.
Investing in anything, it is critical to not pay attention to news "analysis" and stick to a well researched, and well thought out game plan. Just as in sports - play your game and the scores will take care of itself.
Two things:
Endure the guys left a little bit since February, bitcoin will be strengthened and by spring it will gain strength!!!I'm not a prophet, I'm just analyzing the market !;)Bitcoin the king! And behind him grows steem...
you have consolidated the information for everyone to go through the state of cryptocurrency all over the world. it is really helpful for other investors for sure.