Reasons for the prolonged market decline

Reasons for the prolonged market decline

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Some believe that the reason for the collapse of the cryptocurrency market is the panic of investors due to the latest news, while others say that cryptocurrency rates are returning to normal levels..

Most experts argue that the continued decline in the market is associated with the news about the mandatory identification of traders on the American and South Korean exchanges and the tightening of requirements on the Japanese. Additionally, an investigation is underway in the United States about manipulations in the virtual currency market, and over the past weeks, information has regularly appeared about new attacks on crypto-exchanges, cryptocurrencies and blockchain projects. In addition, some investors bought coins for borrowed funds and, unable to withstand the stress of the next decline in the exchange rate, rush to sell the available virtual currencies, which only aggravates the situation. Today it became known that even the launch of the main EOS network was stopped due to the lack of support from the token holders..

Reasons for the prolonged market decline

However, some experts say that the cause of the collapse is not panic, but a return to «natural» level. Since Bitcoin is driving the market, some believe that last year’s over-growth was unnatural. Came to the market there are many scammers, suspicions of regulators arose. All this has had a negative impact on long-term growth and technology development. In their opinion, the market is not falling now, but is recovering after the excitement and 1400% growth. They argue that, despite a 50% decline in the exchange rate since the beginning of the year, the overall trend in military-technical cooperation has been positive for the entire time: exactly a year ago, the price of military-technical cooperation was about $ 2 thousand, and in 2016 — $ 750.

Although the reasons are not exactly known, there is a fact that the value of almost all cryptocurrencies has dropped significantly. In just a week, most coins fell by 20–thirty%. EOS Lost 31% After Breaking the $ 10 Psychological Mark, IOTA — 31.28%, TRON — 31.53%, Zilliqa — 33.81%. Many virtual currencies have approached their annual lows, and the market has lost more than $ 70 billion.

Recall that Bart Smith predicts capital injection into cryptocurrencies after the state creates clear rules of the game.

text: Ivan Malichenko, photo: 123RF

Reasons for the prolonged market decline