This is my theory that I haven't seen being discussed anywhere.
Kraken without a doubt was one of the major points of entry for mass retail "mom and pop" investors. The trading platform has always been notoriously buggy, yet it is one of the most legitimate and highest volume exchanges. When the site suddenly went completely offline for a week, there was a panic. Combine this with other major exchanges such as Bittrex and Binance disabling new registrations, and suddenly new money can no longer enter into the cryptosphere. And if you think Coinbase is a good counter-example, just remember they have very low deposit limits. All the major exchanges allowing serious deposits were more or less offline for new investors.
Of course, the market then went down as many people sell as they normally do. But with the lack of new money entering, we saw a major dip. This major dip combined with Kraken being offline and major exchanges not accepting new registrations, and then the FUD from Korea and false reporting on the media in America, created a perfect storm for absolute fear and paranoia. The sell off began and the big dip became a major crash, with many otherwise strong hands giving in.
There's always been FUD, but it's dangerous when new money cannot enter into the market. That's what leads to the lack of "all green" days on Coinmarketcap. The damage is already done, and the exchanges are doing too little too late. I just hope that when the market does recover, the major exchanges really do have better tech in place that's able to handle the demand.
Interesting theory, I didn't knew that some exchangers are closed for new users, I suppose they did it because they couldn't manage the sudden increase in traffic...
