Topic: Causes of the fall of the crypto-currency market (Read 86 times)

Greetings to colleagues in the forum!
I propose to understand the reasons for the current fall and draw a conclusion of what to expect next. And I apologize for my language...

It is not a secret for anyone that the market falls when an outflow of participants and the withdrawal of capital occurs from it. In its turn, there were few events that formed negative views on the crypto market.

1. Low security of crypto currency.
If we recall the market a few years ago, when the crypto was just emerging, and there was no such level of finance, the situation with hacking bourses or personal purses did not cause such interest. Today the situation is completely different, large investors have invested in crypto-currencies and they are interested in news related to hacking and hacking attacks on the network. Each investor wants to be sure that his tokens are securely protected, both on the wallet and on the exchange.

2. Regulation of Crypto-Currency
When a large investor entered the crypto, public services can not look at it calmly, as this is somehow a blow to the banking system. In addition, the crypto is anonymous finances, from which no taxes are levied and its turnover is not controlled. In its turn, it was anonymity that was at the source of the origin of the crypto-currency market, and any intervention to take this market under control would only reduce its liquidity.

3. Market speculation and psychological factor
The market is controlled by large investors, who can create waves associated with the fall and growth of the exchange rate. At the stage of the fall of the exchange rate, desperate newcomers leave the market. In turn, the currency is redeemed to create another jump, which can happen at any time.

It is very important not to harbor illusions and hope that the crypto will grow from year to year adding to the cost of another zero. Last year the whole market grew tenfold. It's wrong to say that Bitcoin or Ethereum is not interesting. One has only to look at the annual growth graph of the Crypto-currency and you will see that long-term investments bear fruit.

In the end, positive news.
One of these days it was possible to hear the news about the loss of Bitcoins worth more than 20 billion dollars, which was due to the loss of access to their wallets due to their personal reasons (forgotten wallets, loss of keys, etc.). This information was sounded from the American project Chainalysis, which was engaged in the study of Bitcoin wallets.
Thus, if we look at this figure and compare it with Bitcoin's BTC capitalization of $ 109 billion, we will see that about 20% of Bitcoins are actually removed from trading operations. This factor obviously creates a pent-up demand for Bitcoin, which may affect the growth rate, both Bitcoin and the whole crypto world.