Possible Reasons For Crypto-Crash
In the last 48 hours, the crypto market has suffered a significant loss. With a few exceptions (tether and NEM), all crypto curves in the top 20 are clear in the red. The market value of the entire crypto market has fallen by about $ 100 billion. The following article discusses possible causes of the crash.
The total market value has fallen from over $ 460 billion to just over $ 350. Thus, the entire market has lost about a quarter of its total price.
Possible causes of the collapse
As often as it appears, the significant price falls are due to various reasons. All in all, they probably led to strong uncertainty about the market and its investors.
Mt Gox Trustee Sells $400 Million in Bitcoin and Bitcoin Cash
As much as $400 million in cryptocurrencies was sold in the past few months by the bankruptcy trustee of the now-defunct Japanese bitcoin exchange Mt Gox. The details of the sale were published on March 7 by trustee Nobuaki Kobayashi, revealing that JPY 42,988,044,343 - an amount worth roughly $405 million at press-time prices - was generated. According to the creditor report, the trustee liquidated 35,841.00701 BTC and 34,008.00701 in bitcoin cash.
Read more: coindesk.com
Regulatory Measures by SEC
Bitcoin just tanked below $10,000 after SEC says crypto exchanges must register with agency. The SEC said in a statement Wednesday that online platforms trading digital assets that are considered securities need to register with the agency.
Read more: cnbnc.com
Binance Hack Rumors
Cryptocurrency market suffers on binance hack fears. Bitcoin sunk beneath the key $10,000 mark to a recent low amidst rumor-mongering of a Binance hack that compromised investor accounts. Rumors that apparently began with a Reddit thread questioning whether Binance customers where being hacked spread across the net resulting in an overall drop in the cryptomarket.
Read more: newsbtc.com
The Japanese Authorities Continue Against 7 Cryptio Exchanges
Japan punished seven cryptocurrency exchanges, ordering two of them to suspend business, in an effort to shore up consumer protection after a $530 million (381.93 million pounds) theft of digital money from Tokyo-based Coincheck Inc earlier this year.
Read more: reuters.com
These are not possible reasons but exact reasons.
Besides it is March, if you look back to 2017, you will see the similar pattern.
The price should explode to move upwards next week if it will not be flooded with more negativity from various parts of the world.
You are correct as those are all reasons for the uncertainty in the current market. It can be simply put as its all FUD!
Source: teerepublic.com
FUD is nothing new but it is the driving force that causes people to sell. It's massive selling that is keeping the market down and people will have to get past the FUD and start buying again to turn it around.
But, alas, this is all healthy. Weak hands get out, strong hands add stake. HODL.
thanks for update crypto news 😊
It is the sale of a large mass of bitcoin that has lowered the market so. I believe that the measures taken by Japan are positive in the long term. The cryptocurrency market will have an official and legal status as well. Thank you once again @tradewonk of this thorough analysis
You've got a point with the Japanese crackdown. I'm really interested to see how the market reacts to Japan regulating and legitimizing crypto currency. I'd compare it to the introduction of SOX in the US. You would have expected a negative market reaction to such harsh regulation but, the opposite was the case. Prices reacted positively to the regulation that would prevent incidents like Enron or WorldCom. I do wonder if the same effect is possible in the crypto sphere, since the general community mindset is extremely regulation averse.
I also think the Mt. Gox dump had huge impacts on the market down turn. Which is unfortunate since it just further evidences that the market as a whole still relies heavily on the price of Bitcoin. What's worse is that this guy is still in control of a substantial sum of Bitcoin and could flood the market again if he panics.
Japan only acted because of the damage caused by hacks. Surely some poor souls jumped in front of trains or off bridges because the hack destroyed them. It's not bad if a Gov steps in to protect the interests of crypto buyers.
All this makes me want governments involved (and I don't want that normally), I want laws within the sector. There are too many "things" that allow it to be a free-for-all and it's going to be average Joe's and Jane's who get smushed.
We all are suffering the loss :( I hope it will recover soon
:(
We have to suffer now so that we may benefit later on. The pain is real.
You are right brother @stadex, I'm agreed with you.
This is a thorough and, above all, convincingly delivered. Thanks for putting up such a great article.
All three are negative news for crypto investors and because of fear people started to sell. It's an opportunity for many who invest at down and sell at high.
Isn't it @tradewonk?
And you forgot to mention the Dutch government 😋
As they want to have some rules about crypto trading and ico's. Guess Holland is just to small to have any impact 😬
Maybe this crash will be prolonged enough to finally get 1070s at decent price :)