Crypto World #8 Bitcoin: That's What Crashing the Market of Cryptocurrencies:

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The controversial crypto Bitcoin continues to lose in value. For the first time since November, the oldest and best-known digital system on the dominant trading platform fell below $ 6,000 recently.

The low reached $ 5920. This result in a price decline of around 15 percent compared to the first week of February. Bitcoin has lost more than half of its value since the beginning of the year.

Bitcoin counterparts such as Ether, Ripple or Litecoin also fell in the double-digit percentage range. Of the rapid increase in prices, which many of the current around 1,500 cryptosystems had completed in 2017, a large part has now been erased. Bitcoin, for example, had reached a record high of nearly $ 20,000 in mid-December. Since then, however, it has been almost entirely downhill.

The Key Causes:

The cause of the fall in price can be found on the one hand in the digital currencies themselves. These include above all increasing regulatory efforts of so far unregulated trade and repeated hacker attacks on major exchanges.

The bad mood is being amplified by the currently sharp price declines on the international stock markets. Risky investments, which include virtual currency, are charged.

Meanwhile, more and more politicians and regulators want to control on trade with Bitcoin & Co. Japan's central bank recently called on providers of crypto-related services to ensure the security of their services. Investors should also be made aware of the risks. In America, too, the discussion is gaining momentum.

It has become a bit quieter among Bitcoin fans after this news. The price continues its negative trend at the beginning of the current week. Since reaching the high of $ 20,000, it has lost about 60% in value.

The majority of investors come from developing countries:

The current price decline is primarily due to the regulatory measures of some but especially of Asian governments. That makes two things clear in my view.

On the one hand that the proportion of Bitcoin investors from the more developed countries, compared to the investors from the developing countries, is lower. That, in turn, confirms the following assumption:

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In a functioning democracy, there are fewer benefits to Cryptocurrencies:

A cryptocurrency attracts large numbers of investors if democracy if one exists, is less developed. That also makes sense because there is a reason to want to escape the excessive control.

In all other cases, the benefits of a Cryptocurrency against the existing legal and monetary system are in short supply. The more developed the legal and financial system, the less non-ideological incentives are to escape control.

Only one crucial support is left:

If one looks at the price on a weekly basis and in the logarithmic scale, then the next technical chart target could be at the level of the lower trend channel line. This currently amounts to approximately $ 6,700, which would indicate a further downside potential of roughly 16%.

This support, and maybe even the 50-week average just below, should be by far the most important regarding technical performance, as if they did not hold, the long-term uptrend would be over.

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Interested in my previous blogs:

• Tokens Airdrop #1 In this Airdrop you are going to receive 500 Tokens of Escoin.
• Crypto Talk #6 Bitcoin Alternative Mobilecoin: Signal Inventor Announces New Cryptocurrency.
• How To #13 How can you exchange Bitcoin or any other cryptocurrency for real money?
• Crypto World #7 Low on Cryptocurrencies? Try out margin trading.
• Crypto Talk #5 Binance is UP now, it was just a FUD but how this news spreads?

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