What happened to the crypto market - the main reasons for the fall
If the end of the old year turned out to be extremely successful for cryptocurrency market participants, with an increase in the market volume to $ 566.3 billion, the beginning of the new was a complete disappointment. At the time of this writing, the market volume is $ 335 billion. Who knows what losses large and small investors have suffered - but there is no doubt that they are huge. So far it is unclear whether the cryptocurrency will gradually restore its position, or fall further. The market is falling, and today this fall has been particularly pronounced.
What are the causes of the fall? Assumptions are very different (reptiloids are also mentioned), but some of them are repeated - different experts express approximately the same versions of what is happening. This article provides a brief overview of the events that led to the almost double fall of the cryptocurrency market in a short time.
Yes, despite the fact that the Celestial Empire a few months ago banned an ICO and introduced tough measures to regulate the entire cryptocurrency sphere, market participants are still hoping for the best and are waiting for positive news from this side. But they are not, on the contrary, all the negative news from China is coming.
A new wave of decline began with the regular proposals of the Chinese government, which include, for example, the possibility of limiting energy supply for miners. The problem is that the authorities of the country do not consider cryptocurrency a factor contributing to the development of the economy, rather, on the contrary. And since all politics is aimed at stimulating the economy of a giant country, it is clear that they began to consider cryptocurrency almost as an enemy.
Another factor is Chinese New Year. The fact is that most of the country's entrepreneurs stop all business activity before the holidays, doing whatever they want - buying gifts, converting cryptocurrencies into Fiat to receive funds for gifts, but not business. And this is not news - the cryptocurrency market has been dropping in January for several years in a row. Strong.
Source: coinmarketcap.com
At the very beginning of the year, news resources began reporting that India’s financial regulators plan to begin tightening oversight of the country's cryptocurrency exchanges. At the end of January, such banks as the State Bank of India (SBI), Axis Bank, ICICI Bank, HDFC Bank and Yes Bank completely closed access to the accounts of 10 local exchanges, including BtcxIndia, Zebpay, CoinSecure and Unocoin. And although then the Indians began to justify themselves, saying that nobody had planned anything like that, the market could not be stopped - the reaction started.
True, a little later, the head of the Ministry of Finance of India, Arun Jaitley, said that the government is not going to recognize cryptocurrency as legal tender.
When Bitcoin rose to $ 20,000 per coin, even those people who are infinitely far from technology began to trade cryptocurrency. On this occasion, there is an interesting saying of John P. Morgan: "When a shoe cleaner starts to be interested in stocks, it is urgent to leave the market." Not only shoe shiners are interested in cryptocurrency, but in general everyone who can read or at least listen to the radio and watch TV.
There are cases when people sold apartments and bought Bitcoins or other cryptocurrencies for all the money, created small mining farms and hoped for early wealth. Unfortunately, not everybody got rich.
And now, when Bitcoin is rapidly falling, beginners began to urgently sell cryptocurrencies, trying to save at least part of the invested funds. At the same time, experienced traders do not do so, guided by the principle “nothing has been sold yet, the trader is not at a loss.” Well, beginners poured the last coins to those who can really make money on it.
A few months ago, two Chicago stock exchanges - ITS and CME announced the launch of trading in Bitcoin futures. This news was received by the participants of the crypto market extremely positively. But do not forget that the players of the traditional securities market are much more experienced than their colleagues working with cryptocurrencies.
It may well be that some large institutional clients have begun a difficult game of influencing the cryptocurrency market in order to earn money, and not bad. By the way, the normal profit of an ordinary trader is 7% of the invested capital. For crypto traders and 1000% is not the limit. It is clear that a large business simply cannot pass by such an opportunity.
We do not have the competencies to make explicit predictions. Even the largest financial analysts are constantly wrong. Judging by the market dynamics over the previous few years, somewhere in March everything should start to recover. But the sample of several years is very small, so it is very difficult to predict something. Of course, most market participants hope for the best.
But as much as in December, cryptocurrencies have not yet fallen. Bitcoin has not yet exhausted its growth potential, and, most likely, the market will start recovering soon, but it will take a long time to reach previous heights.
What are the causes of the fall? Assumptions are very different (reptiloids are also mentioned), but some of them are repeated - different experts express approximately the same versions of what is happening. This article provides a brief overview of the events that led to the almost double fall of the cryptocurrency market in a short time.
China
Yes, despite the fact that the Celestial Empire a few months ago banned an ICO and introduced tough measures to regulate the entire cryptocurrency sphere, market participants are still hoping for the best and are waiting for positive news from this side. But they are not, on the contrary, all the negative news from China is coming.
A new wave of decline began with the regular proposals of the Chinese government, which include, for example, the possibility of limiting energy supply for miners. The problem is that the authorities of the country do not consider cryptocurrency a factor contributing to the development of the economy, rather, on the contrary. And since all politics is aimed at stimulating the economy of a giant country, it is clear that they began to consider cryptocurrency almost as an enemy.
Another factor is Chinese New Year. The fact is that most of the country's entrepreneurs stop all business activity before the holidays, doing whatever they want - buying gifts, converting cryptocurrencies into Fiat to receive funds for gifts, but not business. And this is not news - the cryptocurrency market has been dropping in January for several years in a row. Strong.
Source: coinmarketcap.com
India
At the very beginning of the year, news resources began reporting that India’s financial regulators plan to begin tightening oversight of the country's cryptocurrency exchanges. At the end of January, such banks as the State Bank of India (SBI), Axis Bank, ICICI Bank, HDFC Bank and Yes Bank completely closed access to the accounts of 10 local exchanges, including BtcxIndia, Zebpay, CoinSecure and Unocoin. And although then the Indians began to justify themselves, saying that nobody had planned anything like that, the market could not be stopped - the reaction started.
True, a little later, the head of the Ministry of Finance of India, Arun Jaitley, said that the government is not going to recognize cryptocurrency as legal tender.
Newbie Disappointment
When Bitcoin rose to $ 20,000 per coin, even those people who are infinitely far from technology began to trade cryptocurrency. On this occasion, there is an interesting saying of John P. Morgan: "When a shoe cleaner starts to be interested in stocks, it is urgent to leave the market." Not only shoe shiners are interested in cryptocurrency, but in general everyone who can read or at least listen to the radio and watch TV.
There are cases when people sold apartments and bought Bitcoins or other cryptocurrencies for all the money, created small mining farms and hoped for early wealth. Unfortunately, not everybody got rich.
And now, when Bitcoin is rapidly falling, beginners began to urgently sell cryptocurrencies, trying to save at least part of the invested funds. At the same time, experienced traders do not do so, guided by the principle “nothing has been sold yet, the trader is not at a loss.” Well, beginners poured the last coins to those who can really make money on it.
Start trading bitcoins on the Chicago stock exchanges
A few months ago, two Chicago stock exchanges - ITS and CME announced the launch of trading in Bitcoin futures. This news was received by the participants of the crypto market extremely positively. But do not forget that the players of the traditional securities market are much more experienced than their colleagues working with cryptocurrencies.
It may well be that some large institutional clients have begun a difficult game of influencing the cryptocurrency market in order to earn money, and not bad. By the way, the normal profit of an ordinary trader is 7% of the invested capital. For crypto traders and 1000% is not the limit. It is clear that a large business simply cannot pass by such an opportunity.
What to expect in the future?
We do not have the competencies to make explicit predictions. Even the largest financial analysts are constantly wrong. Judging by the market dynamics over the previous few years, somewhere in March everything should start to recover. But the sample of several years is very small, so it is very difficult to predict something. Of course, most market participants hope for the best.
But as much as in December, cryptocurrencies have not yet fallen. Bitcoin has not yet exhausted its growth potential, and, most likely, the market will start recovering soon, but it will take a long time to reach previous heights.
Source: https://habr.com/ru/post/410181/