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Like many other crypto investors one must wonder what is causing the whole crypto market to crash yet only two main cryptos, ETH and BCH are going up. Below is my theory as to what caused this perfect storm a.k.a Cryptocyclone.

1. It all started a month ago when the whole market exploded and BTC value nearly doubled in a month.

2. Next, this hype created such a massive influx of people wanting to get in on the action that most of the big exchanges (Kraken, Cryptopia, Bitfinex, Poloniex and for a brief moment Binance) stopped accepting new users registrations. This in result stopped the influx of new capital (sounds familiar?) and also limits the growth of the overall number of transactions which contributes to volatility.

3. Finally the catalyst event was 2 days ago after the @CoinMarketCap excluded some Korean exchanges in price calculations to limit arbitrage. This resulted in scaring all new investors who started pulling their earnings.

4. Now one must wonder why ETH and BCH not seem to be impacted by this? My theory again is because several contributing factors. First, most crypto exchanges support very few main cryptos to convert fiat currency into any crypto (mainly BTC, ETH, BCH and LTC). Most exchanges also support very few same main cryptos to do transfers and most importantly the same main cryptos to trade other alt coins.

Since BTC is very expensive, people are avoiding it because of the high fees. This in terms is causing them to use the other cheaper coins.
About the LTC the market got suspended on one of the largest crypto exchanges Cryptopia. This scared some people about LTC causing them to move their investment in something else.

The something else is the only two main crypto's that today despite the Cryptocyclone are climbing: ETH (12% up) and BCH (6% up).

If you didn't cash out your altcoin investments it might be too late at this point so just keep HODL.
If you did or you planned well and had a balanced and diversified porfolio which included 30%-40% of in in the major coins congratulations! I don NOT think you will be impacted very much.

Either way let me know what do you think?

Register to best crypto exchanges and leverage their various benefits:
https://www.coinbase.com - Purchase Bitcoins, Bitcoin Cash, Litecoins or Ethereum with USD ($) with both credit cards and checking accounts.
https://www.binance.com - Offers various different alt-coins and and does not mandate user identity verification.
https://cryptopia.co.nz/ - The biggest selection of alt-coins
https://www.kucoin.com - Offers the crypto coin KCS which pays dividends to its users.

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