Cryptocurrency markets experienced a havoc in the past few days. Bitcoin, the uncrowned king in the crypto world, has fell as much as 30% over the past two weeks, while other major tokens are all suffered a lot. For instance, Ethereum, the second largest cryptocurrency in market cap, has almost fell 35% in two weeks. The whole crypto market was covered by dark clouds.
It becomes extremely frustrating to the investors as there is no explosive bad news that causes this downturn.
Under this condition, Xiao Lei, a famous financial analyst in China, has listed three main reasons for the recent Bitcoin crash:
First of all, Bitcoin is mired in the bear market, it would be hard to maintain the existing price without fundamental bullish news. As Bitcoin cannot create profit on its own, if no one is willing to buy and hold, the market sell-off is inevitable.
Secondly, the blockchain technology has completed its mission in pushing Bitcoin price to surge. Since 2016, the rise in Bitcoin price should owe to the rise of blockchain technology. Nowadays, as blockchain becomes a fundamental application technology, all the developers are working on how to use this technology to improve the traditional internet and bring out more blockchain-based solutions, in order to gain profits and cash flow in the real world, instead of competing for the dominant financial power.
As thus, the revolutionary will of blockchain is reduced. Meanwhile, the privacy of blockchain assets also faces new challenge. In this case, the demand for stable coins has soared, while Bitcoin and other cryptocurrencies’ attraction have been weakened due to their volatility.
Which means the initial group that has gained huge profits from Bitcoin trading market, is trying to homogenize the crypto market with the traditional market, in order to maintain their interests. Investors are transferring to the traditional assets.
Finally, the recent civil war takes place in the hashing power market, as well as the ambitious procedure of mining hardware manufacturers’ IPO process, for example, Bitmain and Canaan, which makes the upstream industry in Bitcoin ecosystem to face strong pressure.
Xiao concluded that, these issues mentioned above cause the “no reason drop” of Bitcoin. Some investors may feel difficult to understand this and do not know what’s going on. Actually, its quite normal, just like market crashes take place in other investment areas.
Analysis: What 2019 Could Bring for Bitcoin
Trading in altcoins was a big part of what made Bitcoin price spike towards the end of 2017. A section of the crypto space argues that while altcoins helped Bitcoin’s market cap swell, they also bro
Bitcoin Cash Going Down as Stellar Warms up
Bitcoin Cash’s market cap has been cut in half since the Nov. 15 hardfork which birthed the Bitcoin ABC and Bitcoin SV chains. Now at a mere $3.5 bln and a unit price of ~$201 as at the time of writ
300k User Data from Chinese Auto Finance Platform Sold For One Bitcoin on Dark Web
It is revealed that 300,000 pieces of user data from a Chinese auto finance platform Jiurong were compromised and priced at one bitcoin on the dark web.
According to the leaked data posted, persona
Heyday of Bitcoin Mining Rigs Business at China’s Huaqiangbei is Over Amid Crypto Market Carnage
Bitcoin price slumped to a 13-month low of about $4,300 on Wednesday, making mining the world’s leading digital currency an unprofitable business. A lot of mall miners, mining rigs dealers and minin
Dialogue with Bitcoin Evangelist in Latin America: RSK Labs CEO Diego on Crypto Industry
Diego Gutierrez is the CEO at Koibanx and president of Bitcoin Argentina NGO. In addition, Diego also serves as the CEO of Rootstock/RSK Labs, a smart contract platform built on top of bitcoin.
China’s Bitcoin Billionaire Zhao Dong : Bitcoin Price to Hit $50,000 in Three Years—Now Is the Time to Buy the Dip
Despite Bitcoin’s latest crash and a real chance that its price will go much lower, Zhao Dong, prominent Chinese OTC trader and founder of Dfund, remains bullish on the the world’s biggest cryptoc
Bitcoin Miners Sold by Kilo in China Amid Cryptocurrency Crash
The leading cryptocurrency bitcoin once fell below $4,300 on the afternoon of November 20 – down more than 17% on a 24-hour basis and hitting a 13-month low since October 2017. Great losses are seen
Bitcoin Cash Split Into Two Blockchains, but Craig Wright Warned “Game On”
Bitcoin Cash, the most successful bitcoin offshoot, has officially split into two at 18:16 UTC on November 15.
Since two factions of the contentious debate leading up to the hard fork failed to com