Why Is Cryptocurrency's Falling So Low Right Now!
I was doing some research on cryptocurrency and why it was falling right now and I came up with the explanations. I am still doing some research and trying to figure things out. It seems you never know it all and even when you think you do something comes along and you realize there is more to the picture.
"Be fearful when others are greedy and be greedy when others are fearful." —Warren Buffett
1. There are lots of Altcoins coming on the market right now.
There are some new coins coming into play right now. Cardano, Qtum, Ripple, TRON, and Verge. People have been moving to other markets besides Coinbase and are liking that there are other markets for them to trade in. Since bitcoin is the market by which all other coins are measured by and all the other coins popping up it may have somewhat destabilized bitcoin as people are moving coins from bitcoin to other coins in the market.
2. People may be spending some crypto for this Christmas season gifts!
As we know it can be difficult sometimes to use crypto for everyday things and people may have been using the upturn on the market to cash out on some profits and use it for buying gifts and such. Lots of people may have speculative buyers and choose to cash out the profits instead of holding on to it and using it as a long-term investment, getting the yearly gains and waiting for the right time to start buying for the next year.
3. The confusion on Bitcoin and Bitcoin Cash!
The fighting between the BTC and the BCH camps over which one is the true Bitcoin. Coinbase starting buying and selling BCH and after great gains in BCH many social media outlets came alive with the insider trading idea. Coinbase shutdown BCH trading but that afternoon it was back up and running again after an internal investigation. The confusion between the two may have caused some problems and the perceived volatility of BCH may not have helped at all.
4. Market Manipulation!
A recent report in Bloomberg revealed that a group of a 1000 investors own 40% of all the bitcoin . If some of these investors were getting together, they might be able to move the market to the way they wanted. These investors, funds, and other things that had enough invested in the crypto market could tip the scale by making it look like there is lots of volume by just selling and re-selling back-and-forth with small amounts to push up the value of Bitcoin.Why would they do that? So that they could sell at the highest possible price before bringing on a crash by selling off large amounts of their Bitcoin. Of course, this can only work if others begin to see this and sell their own Bitcoin off, this is where lots of new traders comes into the game. By scaring fair-weather fans with FUD ("fear, uncertainty, and doubt) who started buying crypto without really looking into the market, then big investors will make out like bandits. How? By selling off at record highs, dropping the market to record lows, then buying back in.
5. Hacking And Energy Concerns!
Early this month the SEC stopped PlexCoin on charges of being an ICO scam. This week it shut down trading because of the concerns on the accuracy of information and stock manipulation. Then Youbit a popular South Korean exchange said it would close on Dec. 20 after they were hacked by North Korea losing 17 % of their assets. The energy costs associated with Bitcoin mining continue to put a negative spin on it as we move into the new year.
6. The Crypto Bubble!
Because of all the people moving into the crypto world that do not have an experience with these types of markets are making the market more sensitive to the down movements. During the last few years we have learned a couple of things. One thing is that Bitcoin will bounce back, along with many other crypto's and that there will always be a few inevitable casualties along the way. The second thing is that the demand for decentralized currency and blockchain technology is here to stay. Some might urge you to cut your losses now before the bubble completely pops. Others might say it's just another bump in the road, it will be fine.
Source:
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Comment by @killerwhale. This is a opt-in bot.
Thanks for the informative post! I am still trying to figure out how the best way would be to use my SBD and start investing in it or if anything find the best avenue for turning into cash!
Several friends and I use Binance to put some crypto into the market and do some trading. If you need a wallet outside of Steemit, Exodus is a good one.
Thanks for the info! I will check out both Binance and Exodus!
BTC futures and belief that they impact all crypto
BTC is the gold standard for all crypto. I buy more Etherum because it is a cheaper fee and it moves faster.
Bitcoin was, but with the intro of the futures market it became subject to manipulation just like gold is. The other cryptos are safer.