The crypto market, like all markets, is forever deciding the true value of its assets. However, the cryptocurrency market has been experiencing a major outbreak since a few months, starting with the plummeting downfall of Bitcoin(BTC), the strongest crypto identified worldwide.
Bitcoin and Ethereum outperformed the top 10 cryptocurrencies with a slight loss of 0.8 percent, while Ripple, Bitcoin Cash, EOS, and Cardano experienced a loss of around 2.5 percent.
Currently, the issue with low volume in the crypto market stands and the volume of bitcoin has actually decreased from $4.5 billion to $3.5 billion, while Ethereum’s volume has dropped to the lower end of $1 billion.
The market has dropped down by over $7 billion amidst a minor correction. Major investors and crypto enthusiasts were a bit optimistic after the reversal of the cryptocurrency ban by the tech giant Facebook. But unfortunately, nothing positive happened, other cryptocurrencies are following the same downfall as the “Pied Piper was being followed by the rat”.
Let’s point out the major reasons for the plague in the cryptocurrency:
BTC has almost had a massive downfall and reached below $6000 mark. As of now, Bitcoin is trading at $5895.13. Bitcoin price nearly fell by 11% after the South Korean Exchange attack. Ethereum, Ripple and Bitcoin cash had fallen by 5% or more. The historical data from the coinmarketcap shows that there has been a decline of nearly $3,00,000,000 in market cap from the 8th to the 11th of June, 2018.
The cryptocurrency price fluctuations are to be expected with such a nascent market, according to Matthew Newton, an analyst at the trading platform eToro. He says, “The reality is that emerging technologies carrying radically new ideas will always see swings in their value,” Mr. Newton told The Independent.
“Market adjustments as we have seen over the past months can help to stabilize prices and move the industry towards a more robust, sophisticated regime. This is good for the long-term future of blockchain and cryptocurrencies, giving the industry time to develop.”
Other factors which might have contributed to the sudden downfall of the crypto market might be the regulatory measures introduced in Japan. Bitflyer, the local exchange aggregator announced that they wouldn’t accept new customers due to the regulations imposed by the Financial Services Agency in Japan.
Even Ripple suffered heavy losses, the major reason being the South Korean hack, trading at $0.431157 as of now, wherein the percentage decrease in the last one hour is 10%. Ethereum suffered a more tremendous fall, trading now at $411.43, with the percentage decrease by 25% in the last hour. Cryptocurrencies can’t catch a break this week as more negative news continues to crowd the market. “Traders woke up to the news that the Department of Justice (DOJ) has seized more than $20 million in bitcoin from illicit weapons and narcotics traders on the Darknet, shrouding the cryptocurrency market in a negative light again.”
One more reason is Alibaba’s chairman Jack Ma’s statement where he advises traders against Bitcoin saying that “the digital coin is a bubble will burst.” Speaking at a launch event for a new online-payment service for real-time cash transfers between Hong Kong and the Philippines, he said: “Technology itself isn’t the bubble, but bitcoin likely is.
Crypto frauds are alarmingly spreading all over the world, more so in countries like China. The Cryptocurrency Fraud in China has increased to such an extent the Chinese Government has been forced to take the decision to ban all forms of cryptocurrencies like Bitcoin, Bitcoin etc. A cryptocurrency scam of value $47 thousand digital scams has been revealed by the Chinese Police department. This is perhaps the biggest Cryptocurrency Fraud in China that has been reported to date. Six individuals were caught who tricked almost 3,000 China traders and needless to say that these traders were doomed.