The cryptocurrency market is experiencing the strongest drop in rates. And everything falls, and bitcoins, and altcoins. There are several versions of why this happens. It is impossible to single out one of them, because one complements the other.
At the moment, the total capitalization of the cryptocurrency market is slightly more than $ 352 billion. In principle, last month they went down and below, so for now nothing is critical.
The first reason I want to highlight the recent hack Binance. And although it did not bring any damage, except to the reputation of the exchange, it did affect the cryptocurrency rates. It was towards the evening of the same day when users of the exchange began to experience problems in their accounts and the market collapsed.
The second reason can be considered the publication of information that the trustee of the infamous Mt.Gox trading platform has been selling the bitcoins entrusted to it for six months in order to satisfy the claims of the creditors, who are more than 25,000 there. and most of the major falls occurred just on the day when a large number of bitcoins were sold. The last time the course fell to $ 6,000, when it was sold 6,000 bitcoins. According to the available information, about 166,000 bitcoins still remain in the trust management, which are also planned to be sold.
In addition to this, I want to say that this is still the largest sale of cryptocurrency lately, but in addition to it there are also many small ones, such as the sale of 2170 Bitcoins seized by American marshals in criminal or administrative cases.
Well, the third reason is more and more control over the cryptocurrency market. The authorities of many countries are pushing owners of services related to cryptocurrency to fully identify their customers. Otherwise, sanctions are applied to such services.
From all the above, I conclude that in a few more weeks we will observe a negative trend in all cryptocurrencies, moreover, if you believe professional analysts, the period of decline will not end soon. According to their estimates, this will last another 50 days 60.
With the reasons for the fall figured out – now you need to deal with the prospects for growth, if they certainly are. And they are in my opinion. This is evidenced by a lot of news, which says about new developments, as well as about accepting Bitcoin (such as in Germany, where it was recently recognized as an official payment instrument) as a means of payment. I give a big role to the news about mining and especially information about investments in this area. It is extremely doubtful that someone will invest big money in a deliberately unpromising direction. An example of this is the information that GMO Internet is increasing its mining capacity, and at a rather rapid pace. In just 2–3 months, they raised their capacities from 24 HRS / s to 108 HRPS / s.
Based on the foregoing, I believe that the market is now in the next phase of decline. which lasts half a year. after which there will be 2 3 months of growth and again a recession.