Reason One.
Going as far back as August last year, serious concerns were raised about Tether and it's relationship with the Bitfinex coin exchange. A series of videos (on Youtube) started to question not only Tethers viability but its ability to raise coins seemingly out of thin air. A pattern started to emerge each time bitcoin had a sharp drop, Tether would print out more coins which appeared to boost Bitcoin to once again rally. This pattern has repeated itself several times over the last eight months. On the 20th November last year Tether was hacked $30 million. It made no attempt to reassure it's many holders of it's coin. It did not release any statements regards what it was doing to find the hackers or what it intended to do with any possible upgrades to it's security systems to prevent future hacks. Yet despite all this, it magically re-issued a further 50 million coins. There were a whole series of events that raised some very serious concerns. I will add one more as Tether itself is worthy of a whole article by itself! At the beginning of last year 2017 January, Tether had $1,000,000 coins in circulation. By November, it had $700,000,000. This in of itself should of raised all sorts of red flags! With the US regulators now in picture. The faster that Tether and Bifinex is removed from the crypto markets , the better. Take a look at the above photo. The administrators of both organisations live by their companys' logo." The new way to move money"- right into their pockets. All of this in my opinion contributed to at least 20% of the fall of bitcoin.
Reason Two
The second reason that Bitcoin has taken a tumble is related to the Futures markets. In the middle of the December last year two company's offered future contracts. With CBOE's contracts expiring on the 17th of January and they were on a bearish position. In my view they had an incentive to manipulate the market to ensure that bitcoin remained under it's quoted price of $20,000 USD. The same again could be said of the CME group who closed their contracts on the 26th January.Though I believe their contracts only numbered in the hundreds, it had some bearing on the price of bitcoin.
However, this may have contributed to 10% of Bitcoins drop.
Reason Three.
As far back as 27th December last year news started to circulate that South Korea may in fact close several of it's coin exchanges. Then on the 10th of January, South Korea's Justice minister Park Sang-Ki made an announcement stating that a bill was being made to be put forward to the Government to ban all trading of Cryptocurrency. This turned out to be false and he as minister was removed from office. However, because the genie was let out of the bottle, the Government decided to regulate the exchanges regardless. The South Korea's have now re entered the crypto space, so most of what occurred was total FUD.This would of caused at least 20% of Bitcoins price to fall.
Reason Four
Though I believe that is would be minute in terms of it's overall impact on the price of Bitcoin, it added to an already declining Bitcoin price. It also added a little bit more to the fire. India's Finance Minister Arun Jaitley made a statement in the Indian Parliament that he was to clamp down on the illegitimate use of cryptocurrency and the adoption of blockchain technology in India's future economic growth. The local media misinterpreted this statement and made press releases through both written form and in radio broadcasts that " India will ban cryptocurrencies!"
Nothing could be more further from his actual statement! 3% Impact on Bitcoins falling value?
Reason Five.
Though again I don't think this had an immediate effect on Bitcoin. It came at a very bad point. We all know that Facebook has some major plans into the future. Yes, it has banned all forms of Crypto on it's site. Why? Because at some point it intends to launch it's own coin. It is preparing itself to take on Youtube and several other social media sites.2% impact on Bitcoin?
Reason Six.
Last week on the 23rd January the largest Japanese currency exchange was hacked to the tune of $500 million dollars. Making it the largest exchange heist in history! In the space of a year there has been several large hacks and several losses through bogus wallets or dysfunctional wallets. However with this latest hack, I am certain that this has instigated a large sell off by very nervous traders. I attribute that this cause a further drop in Bitcoins price by between 5-10%
Reason Seven
Absolute greed. Since December last year there has been an incredible number of people joining the crypto markets. Several exchanges had to stop accepting new clients. I think BINANCE stopped accepting new clients because it was inundated with over 35,000 request per day. Most new clients had entered into the market with grandiose expectations. The stories of people putting their house on the market to buy Bitcoins and other altcoins was too numerous to count. Sad stories of others who invested their life savings into this space and were burnt. Most had not done due diligence or tested the market on a small scale first. I do feel for them and their losses. Must be a horrible feeling!
I'll pass on a parable. I use to dive for pearls. As a child, when learning to free dive in the deep. My grand father use to always tell me a story about greed. Long ago, a certain diver use to have a serious problem when diving with other divers. We use the sun light behind us when diving as pearl shells sometime will open a fraction. If the light is right, occasionally you will see a glint, so rather than pick other shells, you swim and gather that particular shell; because you know it will have a pearl in it! In deep diving you have to return to the surface slowly so as not to get the bends. Being on an isolated island, bends is a death sentence. This person saw a glint but was at his limit. Rather than return to the surface he continued along the bottom to this particular shell. When he made his way back to the surface it was already too late. He drowned. With the pearl shell tucked in his diving bag. Lesson of the story according to my grand father. When diving, air is the most valuable thing you can have. You can always dive for another pearl!
Moral: People get blinded and start to have a fixation (thinking of the pearl and forgetting about what is truly valuable, in this case - air) on huge returns. Yes, everyone wants a huge return on investment but every once in a while, take a breather and relax. The only way that you make a loss with Cryptos' is when you sell at a loss. With the incredible amount of FUD and disheartening news over the last couple of weeks, its easy to forget, the pearl is still waiting there for you. Grab some fresh air, relax and ready yourself for another so called dive.
Reason Eight
Why hodling is the best strategy at the moment!
Because its the only viable strategy! Most people during this period do not know whether to laugh or cry?
The only advise that I can offer you is this HODL, HODL,HODL and if you didn't hear me the first time HODL!
I believe that on the 14th February there may be another fall in the markets. Provided a few things happen, personally I think the markets will start to rise possibly the 21st February but I feel that the markets will certainly rise on March 1st.
Images sourced from free images, pixabay and fotojet.
links:
https://www.coindesk.com/cboes-first-bitcoin-futures-contract-expired-today/
http://fortune.com/2017/12/17/bitcoin-record-high-short-of-20000/
https://www.coindesk.com/cboes-first-bitcoin-futures-contract-expired-today/
)
When it's like a week later, and all that HODLed are waiting for it to skyrocket now🤣.
How true! I was reading a report yesterday, a financial investor ( I think he was the main man for a really large investment company) stated the he expected that the markets will really start to take off during March/ April and I thought that he made some valid points. I thought there might be some upward movement from March 1st. I'm actually quite happy with market as they are now. Allows me more time to get to my goals for each of the coins that I have now. Patience is the key now. We know that it will rise again, that is a certainty! I have so much faith in all the technology that is involved with cryptos.
Thanks for your article. You presented reasonable explanation about crypto market fall. Steem on.
Thank you, I hope that it was of use to you.
thank you for your post.
You are right Hodl is the best option.
Thanks for taking the time to read it. Hope it was of use to you. Not much you could do but Hodl. Market hasn't yet bottomed out completely. I hope that today it settles and at least start to go sideways,which would be a welcomed sign.
Hey. I'd like to make a translated version of your post, giving you full credits for the content. This information is not available in my language. Do you give me permission?
Absolutely! You are most welcome, if it is helpful to others, I would be more than happy for you to translate it. Hope you all the best with your translation. Cheers
What's this? A well researched, cited post on steemit? I am amazed!
Take your upvote, sir! You've earned it.
Why thank you very much. Spent several hours writing it all out. Had to learn code to position photos. Still learning a ton of stuff to make my post better and please watch this space.....the post with only get better and hopefully a lot more detailed in future. Improving on layout as time moves on. Thanks once again for your up vote and I do appreciate your reply!
Did you use HTML or markdown to make this post?
Markdown but wanting to learn HTML, actually wanting to learn everything to improve. Will get there.
What guide did you use for markdown? I've been using the GitHub guide they link when you post, but you must be using things that aren't in that guide. That or my reading comprehension is shit, which is entirely possible...
I used the mark down on this sites markdown in the post section but used the codes from the following you tube video. This is the link to that video -
You use the code but adjust it to suit.
Example as follows- to place a picture to the right
Hope this is helpful. Going to go back over all the markdown methods again and if you have any questions, I'll be happy to help out. So feel free to ask. I hope the video is helpful.
So you can mix HTML and markdown... Fascinating!
Yep, some good thinking in your article. Always good to go back to the underlying problem crypto is solving...transparency, decentralized and a store of value! These are what we need in our financial systems and I think it's just a matter of time before they increase in value! Central banks DEFINITELY don't want crypto winning...
Certainly, the Banking Institutions definitely do not want the Cryptocurrenies to succeed. It's a real threat to them. They have had it so good for so long! Just using Australia as an example. Late last year the Australia Government took all five of the major banks to court for money laundering. The very thing that the banks claimed was happening with Cryptos'. The up shoot of that was banks no longer charge a withdrawal fee from ATM machines. Use to cost $2.50 for each withdrawal. Then in the middle of December all the banks debanked all Australian Coin exchanges. So you couldn't deposit money into any exchange. Happily as of last week, thing have returned to normal. Mostly due to customer complaints and the backing of the government (just a little side note: The Australian Government has made it clear that it will be using Neo's blockchain).
Yes, crypto does fix the problem of transparency and has an intrinsic storage value. Being decentralized and its technology brings even more value. Please, don't get the wrong; crypto still has a ways to go. Let's imagine an old lady in her 80s, when the day arrives and that little old biddy lady is able to transfer funds from one account to another, make purchases,check up on the ownership of her house, book a doctors visit and pay for it using , say Litecoin all with a simple app on her phone. That is the day that Crypto has finally arrived! It is truly only a matter of time that Cryptos, particularly long term increases in value. Thank for reading my post. Love responding to well though out replies. Had some really nice ones.
Very fascinating! I'm based in cape Town, South Africa and will be interesting to see how cryptos get used here in the African context...Thanks for your response and glad to hear Neo is getting used outside China!
I remember reading that one of your department stores in South Africa was accepting Bitcoin as payment on a trial basis. Not sure if they in the end decided to use another coin instead. You just have to look at Zimbabwe and how its citizen have adopted crypto. Solely due to the corruption from President Mugabe government. This is a great example of how citizens have to some extent taken back some control of their own money. I think cryptos will play a huge part in the Africa continent and most of it will be positive.
You got a 0.45% upvote from @allaz courtesy of @skytronia!
Thanks
This post has received a 2.60 % upvote from @aksdwi thanks to: @skytronia.
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Thanks buddy will certainly be using your ultimate soon.