Bitcoin is down, the complete market looks red at the moment, there are talks of a possible crypto trading ban in South Korea and China isn’t making things any easier with reports of a possible crushing on all trading activity barring over-the-counter and P2P exchanges.
Bitcoin’s value went below $12,000 today, matching December 5, 2017 levels, and also the overall market cap for cryptocurrencies lost over $100 billion. If Bitcoin continues to slip and drop more, we could even find successive support around $8,000, therefore the image isn’t very pretty right now.
Why is Bitcoin, and the market crashing?
Developments in South Korea and China have invariably had an enormous impact on Bitcoin prices since these are 2 of the largest cryptocurrency markets with Korean exchanges leading world trading volumes.
Since Bitcoin markets are the largest, with all different currencies paired with BTC, a value drop for Bitcoin virtually invariably leads to an overall market decline.
If Bitcoin trading is prohibited, it’d take away a major chunk of trading volume, leading to a fair larger pull back. The value drops we are experiencing currently are simply in anticipation of such a ban, as investors and traders sell to cut losses. If you check out CMC, Tether (USDT) is one among the few currencies up over the last twenty four hours, and it indicates that a major majority has sold their tokens for USDT.
However, there’s probably another excuse behind the present drop, which isn’t associated with these developments.
Chinese New Year is a big Deal
The Chinese New Year, or the lunar New Year, is coming up on February 16, 2018, and similar to Christmas in December resulted in a drop, the lunar New Year additionally takes cash out of the markets.
The lunar New Year is celebrated in a big manner – individuals purchase gifts and travel and around $100 billion is spent throughout now. Given how crypto markets have retail investors, it is sensible that such an occurrence would end in folks selling off for the short-term.
Will Bitcoin rise again?
No one is extremely aware of the solution to that question, however even as there are experts who claim it’ll finish badly, there are those that project it’ll reach many thousands of dollars in price.
In terms of where the market stands these days, we are simply viewing the beginning, and there are lots more things to come this year in the shape of latest developments, new features, new ICOs and new cash.
Historically speaking, up until now, Bitcoin has managed to pick up from corrections and break previous highs, it remains to be seen whether or not it’ll be the case now.