What could cause the crash of cryptocurrency?
On all speculative markets, fear and greed take turns dominating the sentiment of the crowd. Green is the color of greed and red is the color of fear. When the market has been green long enough, smart money starts to sell in order to take profit. With more profit taking the price stops going up and fear sets in, which leads to a collapse in prices. It's all about fear and greed struggling for upper hand.
It will be probably caused by some efforts of large-scale investors to manipulate - it even can cause a stock market crash, which has significantly deeper liquidity than cryptocurrencies. You should also remember, December 2017 Bitcoin price crash was nothing new for its history.
In May, a group of cryptocurrency researchers and traders suggested that the bitcoin price has begun to fall from its all-time high on the same day the Bitcoin futures market of CME and CBOE launched.
Through the futures market, institutional investors and large-scale retail traders manipulated the market to cash out short contracts by purchasing and selling massive amounts of Bitcoin in a correlated manner.
With cryptocurrency, people are often very unsure why it has any value at all and are afraid that at any moment it may become worth nothing. This doubts can cause a situation where if the price of a coin drops suddenly, many owners will try and sell as soon as possible, before the price drops too low.
This business of undercutting the other sellers causes the price to drop very quickly, and this continuing sharp drop makes even more people afraid and want to sell. But large holders, who manipulate the market, wanting to sell a lot of coin know this. So as soon as the price drops, because they know the drop is artificial, they are not afraid. But they also don't want to sell their coin for less than they have to. Just after the price has dropped, but before it has gone too far, they boost it back up again by putting a lot of buy orders on the market at a good price
almost all cryptocurrency decreased signifikan.baik it ethereum, ripple, litecoin, and various types of cryptocurrency the decreased is quite lumayan.berbagai party was analyzed that the phenomenon cryptocurrency triggered by bitcoin this is just the phenomenon of a moment, or words cool is phenomenon bubble.kenapa said the phenomenon of bubble? As such as the bubble soap, can any time broke and hancur.bahkan there is a equate phenomenon cryptocurrency it's like the phenomenon of interest Tulip in the Netherlands hundreds of years ago. The phenomenon of interest Tulip horrendous Europe to raise the price of interest Tulip to many times price should. Finally bubble burst and the price Tulip back as the original, and leaving many people lose uang.namun, there are experts other said that the phenomenon of cryptocurrency it's like the phenomenon of gold or gold rush in America in the 1800s. Where people on vying to dig gold up to the value of gold increased sharply. However, unlike Tulip, gold until now still used as a basis of Exchange rate of money, so its value rarely down.
Genesis the decline cryptocurrency this raises panic
Ahead of the new year imlekberbanding upside down with stock, ahead of the long holiday and a great day religious, Exchange rate cryptocurrency will turun.ini occurs because cryptocurrency used as a currency in the transaction. Or in other words, the people using bitcoin and the like to berbelanja.menurut existing data, most players cryptocurrency derived from Asia, such as China and Korea selatan.berhubung soon there will be a great day religious many are celebrated by people in Asia, the Chinese new year, the millions of people in Asia a lot of transaction with cryptocurrency.hal this makes coin cryptocurrency the outstanding on the market so that the value be down because easy didapat.namun different from the stock price, cryptocurrency more similar to the results of mine as precious metal, where the price is able to back up unexpectedly. Depending on how much transaction use it. (Read: specs Sony Xperia z5 premium, Snapdragon 810 and screen cool) 2. New regulations in jermansedangkan to the European market, the decline cryptocurrency more as a result new regulations that will be rolled in jerman.jerman as one of the state strongest in Europe, especially after a British out of the European Union, will issue a policy related cryptocurrency.mereka want to set the circulation cryptocurrency globally like such as the currency Exchange new level internasional.untuk it Germany will not allow the circulation of cryptocurrency if there is no approval global agreed the Exchange rate remains to cryptocurrency.masalahnya, there is no faith the same from other countries, even the Chinese impressed ignore the invitation Germany tersebut.akibatnya, circulation cryptocurrency in the European market was slow down. Although it is also not prohibited.
I'm from India. For the past two months, our government is troubling us a lot. Till yesterday we were able to convert cryptocurrencies to our local currency but from 05-07-2018 onwards there is a ban. We are unable to withdraw or deposit local currency to sell or buy cryptocurrencies.
This not only happened in India, there are also few other countries where there is a ban on cryptocurrencies. As India was one of the major contributors for cryptocurrency market, the crash in the market is reasonable. Hopefully when things are sorted out, we will be able to see a good growth as people again start to invest.
If there is no demand at all for the cryptocurrency,many things could make demands for cryptos to vanish,such examples are negative news about the cryptocurreny itself which now led to panic selling and no one is willing to buy it,this is an example of things that can make a cryptocurrency to crash
It turns out that not only Bitcoin is free-falling, almost all Cryptocurrency has decreased significantly. Either Ethereum, Ripple, Litecoin, and various types of Cryptocurrency is suffered a pretty decent decline. Various parties have analyzed that the Cryptocurrency phenomenon triggered by Bitcoin is only a momentary phenomenon, or the cool word is a Bubble phenomenon. Why is it said Bubble phenomenon? Because like a soap bubble, can at any time broken and destroyed.Even one equate Cryptocurrency phenomenon is like Tulip flower phenomenon in the Netherlands hundreds of years ago. Tulip flower phenomenon horrendous to Europe to raise the price of Tulip flowers until many times the price should be. Until finally the bubble burst and the price Tulip back as before, and left many people who lost money. However, there are other experts who say that the phenomenon of Cryptocurrency is like the phenomenon of Gold or Gold Rush in America in the 1800s. Where people in the race to dig gold until the value of gold increased sharply. But unlike the Tulip, gold is still used as the basis of the exchange rate, so its value is rarely down.
The greatest risk to cryptocurrencies in general is regulatory overreach by the largest governments. In Bangladesh, cryptocurrencies are completely banned and owning or trading cryptocurrencies carries a penalty up to 12 years in prison. While it's unlikely for any civilized country to go as ridiculously overboard as Bangladesh, it is entirely possible for regulators to make owning, trading and using cryptocurrencies legally so difficult that everyone but criminals would be forced to quit.