What is the Main Reason for the Decline in the Cryptocurrency Market?
February 2018 is not going well for Bitcoin and cryptocurrencies. According to Coinmarketcap data, while the cryptocurrencies in the top 50 show an average of 22%, there are serious imbalances in the prices of Bitcoin again.
As of November 2017, Bitcoin, which has fallen below $9,000 for the first time since then, is eagerly awaited what the next move will be.. In a market where such price differences change daily, the interpretation of traditional stock market charts may not make much sense, however, according to some analysts, Bitcoin has two options: If 8k resistance is also broken, the decline will fall by 5 While it is possible that it will go to the thousand levels , some opinions think that an uptrend may come if the 8 thousand resistance is not broken. to give. Well, what is the reason for these reds in the cryptocurrency market right now?
The first reason is from India. In a statement yesterday, India’s Finance Minister Arun Jaitley said”“The government does not recognize cryptocurrencies as a national currency and to prevent crypto assets from being used to finance illegitimate activities or as part of a payment system. will take all precautions” by the media, a serious downward trend was observed in Bitcoin prices, while some sources stated that this statement by Jaitley did not reflect the general mentality of the country.
Especially, Bit Torrent
According to strong>creator Bram Cohen, Jaitley’s statements are purely FUD. What is meant by the term FUD here is the set of events that mean Fear, Uncertainity and Doubt in English, which we can briefly describe as meaningless haste, that will not affect the long-term value of Bitcoin and will create a short-term decline.
Another reason for the decrease for Bitcoin, which is around $ 8,300 with a decrease of 14% at this time of the day, may be the new Tether flow to the market.
Tether. While the allegations that Bitcoin has inflated the price of Bitcoin unnecessarily, especially in the past period, keep the agenda busy, Chris Burniske: ”It is a fact that Tether has 0.4 percent of the total crypto money value, and such a value. I don’t know how it can affect the whole market.”
How Can India Impact the Market So Much?
Another question mark in the minds of investors is how a news or distortion from India can affect the market so much.
Considering that India addresses 10% of the total Bitcoin trade, it is not very difficult to answer this question.. The steps taken by a country with such a large slice can affect the entire market with the effect of “wet burns next to the currency rate”.. It has also shown this effect with the situation experienced.
Whales Are Still
In addition, when we look at the top 10 wallets with the most Bitcoin, it is seen that only one of them sold 3,000 BTC, but there are no movements in other accounts. It turned out that it was not observed. This shows that the reason for the decline and the loss is only the investors who made panic sales.
Davos
Although our country does not participate, Davos is a big event when it comes to the economy.. Davos, which hosts many countries of the world, naturally has an impact on the topics discussed.
The crypto money issue, which has a great place in Davos this year, has actually been vilified by the investors and the world with the vilification and harsh criticism.. Due to the bad reviews made by many officials, this event may also be a factor in the decline.
Facebook’s Banning of Ads
The news of Facebook banning ads related to cryptocurrencies in the past days actually surprised everyone.. It was found unreasonable for a platform like Facebook, whose revenue model is advertising, to impose such a ban on cryptocurrencies, which is one of the most talked about topics in the world right now.. According to some, this step is an intervention from outside rather than the company’s decision.
We will see how the developments will affect the market, but it is a fact that Bitcoin has reached the level of 19 thousand dollars, the total market volume has reached the level of 800 billion dollars, these levels have not yet been reached. If it has been able to see it before it is adopted and widespread by the whole world, it is not impossible to reach or exceed these levels again.
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