It is no news that the entire crypto market has been experiencing a blood bath for a couple of days now. This has caused a lot of panic in the crypto sphere, with a lot of investors and HOLDLERS having so many unanswered question.
Here are some tips on why the crpto market crashed.
1. TECHNICAL INDICATORS; so little attention is paid to this aspect, but it has a lot of influence in which direction the market moves. A lot of traders are putting their trust on these indicators and this traders play the game base on support and resistance. The $7000 was a key support level for many traders over a period of time now, once the support was broken, it was like opening the flood gate so many traders have to redraw their lines and look for new support.
2. The forces behind ripple are slowly manipulating the price of btc ever downward and the price of ripple ever upward in other for ripple to overtake btc in market cap “banks delight “ I would say. But practically, if all the ripple partners ever actually use xrp, the coin will explode (xrp will not replace btc, but it will become massive on it’s own
3. DELAY IN BAKKT LAUNCH; there were so many anticipations riding on the launch of BAKKT (a future that was to save us all from the crypto apocalypse), but it was delayed for a month, most of the massive sell off happened few days before the official announcement.
4. BITCOIN CASH; the ash war in bitcoin cash continues, both sides continue burning huge amount on a daily basis in other to win the Eagle war! (I personally don’t see any reason for this war)
5. BITCOIN MINERS ARE PULLING THE PLUG; the break even price for many miners globally will now be far removed from the daily mining earnings. Home miners are definitely cut out of this except they have free power. Only huge companies like Bitmain can afford to stay in loss for quite some time.
6. SEC REGULATIONS; SEC has also contributed to the bearish market trend by;
i. Fining Delta founder for running unregistered security exchange.
ii. Fining paragon and air token for selling unregistered securities
7. PESSIMISM IN THE MARKET HAS REACHED NEW LOW; speculators has been the real drivers of price. Until we have some HYIP built up again, there would be no speculation.
Fewer speculation means lower prices which means lower confidence
8. THE END OF ICO BOOM; Huge amount was realised from ICO crowd sale this year. many ICOs where nothing more than a white paper. The money raised from this ICOSs are being converted into fiat. This also contributed to the bearish trend.
I hope you find my article useful, don’t forget to drop your opinions in the comment section.
image source; google.com