Corrections are quite obvious in the crypto market now. But after months bearing the losses in the market people are now getting frustrated about the market itself.
The bitcoin price has declined below the $7,300mark yesterday as the valuation of the cryptocurrency market reduced by more than $25billion, from $350 billion to $325 billion over the past 24 hours.
Since the past three days, the total valuation of the cryptocurrency market crashed from $390 to $333 billion, loosing more than $57 billion. Due to this on May 24, the cryptocurrency market made a new monthly low where the experts were predicting bull run from now.
Cryptocurrency market is highly unpredictable, that is it is always suggested to pour in only your extra money there and not to take loans to do trading. You can see that at the time when the market experts with years of experience were expecting bull run market just fell down its month low.
Why is the Cryptomarket Dropping?
After the conclusion of the consensus, with everything gone pretty well and the number of attendees and investors were also more than previous years market is yet to take a fly off. But the question now arises, why the market is going down without a serious negative news.
To find this out we did a lot of research about the current scenario and found out some of the possible reasons for the market collapse. Major of them are discussed below :
- Mt. Gox sell-off, Mt. Gox the name which scares us the most is constantly selling its bitcoins and bitcoin cash in portions.
- The second major reason of drop is market manipulation by whales to get bitcoin and altcoins at cheap prices and book profits later.
- Bitfinex is also supposed to develop a taxation policy
- Bithumb and Upbit the famous and largest exchanges of South Korea are involved in the scandal. They haven’t given the government the actual record of their holdings.
- Institutional investors which were supposed to enter after consensus are yet to come.
- Regulatory concerns across the globe including India also. As this year is supposed to be the year of regulations.
In December 2017, bitcoin futures were introduced in U.S.A which made the market a lot more volatile than before. Now a lot of big whales have taken entry in the market and are constantly manipulating the whole market for their benefits.
The great sell-off of bitcoin by the Mt. Gox trustee and sequence of negative events from South Korea and the US-led investors to lose confidence in the cryptocurrency market in the short-term.
Techllog Views and Will Bitcoin jump again?
Correction after correction is made the market quite boring. Many immature investors are also losing hope from the market saying that the bubble is bursting slowly. But is this true – No, not at all. Look at the practical uses of the blockchain, governments across the globe are focussing on using it for the betterment of mankind.
Don’t take it just as a way of earning, there is a lot to learn from it. Even whales can only stop the manipulate the market for few hours or days but no one can stop this ocean to explode. Just enjoy the weekend as of now, Bitcoin price will surely surge again.