CryptoCurrency is down again – The reason behind this fall?

CryptoCurrency is down again

Nowadays the crypto market is in falling situation. This is because the bears in the market are active and there is a big selling pressure. This drop of cryptocurrency is not a new thing as we have discussed in our earlier article. In the recent situation, one article came into our knowledge from independent of UK. There article can be found here.

 

In that article, ANTHONY CUTHBERTSON (The writer) stated that bitcoin has crashed after getting its peak in December 2017. This is true, bitcoin got peak but experts and analysts have suggested the most recent fall in value can be attributed to a new study which suggests market manipulation was behind the 2017 bubble.

 

Research of University of Texas

The researchers of University of Texas thoroughly investigated this whole scenario and bitfinex exchange and the outcome of the investigation is: the remarkable price rise was artificially inflated through manipulation of the platforms. Bruno Peroni, director of investor relations at cryptocurrency investment platform Atlas Quantum, said the combination of these two events in short succession is responsible for such a dramatic change in fortunes.

 

According to Mr. Peroni, some other factors to consider for the latest price crash, is a news report from Chinese newspaper People’s Daily that claim China will continue to clamp down on illegal fundraising through cryptocurrency platforms. This news also caused the bears action in market.

 

Cryptocurrency Markets and Sellers

According to Independent, “Herd mentality seems to play a big role in the cryptocurrency markets and sellers seem to be in control at the moment,” he said. “A corrective rally might bring the price back above $7,000, however technical analysis shows a strong recovery is unlikely in the short term.”

Like many other analysts, Mr Isaacs is “very optimistic” for the longer term future of bitcoin and other cryptocurrencies, although he warned that clear regulatory systems will need to be put in place before it is considered a legitimate store of value and a reliable medium for financial transactions.

News of CoinRail

News of the Coinrail hack, while damaging in the short-term, could actually prove positive in the longer run, according to the chief operating officer of one exchange. “The Coinrail hack shows that the fast-paced, evolving world of cryptocurrency is continuing to hold strong appeal to fraudsters and hackers, which in turn grows the level of risk for the market,” David Sapper, COO of Australian cryptocurrency exchange Blockbid, told The Independent.

“However, hacks on exchanges aren’t a new thing and prices of cryptocurrencies will recover as they have done so before.” Despite this broad positivity, analysts were forced to revise optimistic price predictions from the start of the year, with a panel of cryptocurrency experts recently changing their predictions from $33,000 by the end of the year, to just $14,638.

 

In the above scenario, it seems that the bears will stay active in crypto market. Due to a lot of selling pressure, the bulls are tired and it doesn’t seems that we may see a high in near future. Besides this facts, people will buy bitcoin, according to my belief. This is because there is an opportunity to deep dive. Buying at depth is a good opportunity for long term traders. This is an analysis, we are not recommending to buy it right now or in any support line.

 

There were several legal formalities that make hurdles in several countries. Banking system is also a little bit hurdle for this. Some countries have imposed banned upon transaction to cryptocurrency exchanger and if someone found guilty, may get sentence. So, due to these kind of restrictions, people are not involving themselves in block chain technology.

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