Main Factors Why Bitcoin and Cryptocurrencies are Seeing New Lows in 2018
Why Are Bitcoin and Virtual Currencies Reaching New Lows?
Bitcoin and other virtual currencies are in a bear market since the beginning of the year even when there are new investments and important improvements in the most known cryptos. But which is the reason for their value to keep falling?
If we take a look at the fundamentals, the cryptocurrency market has never been better than now. We can mention several new institutional options such as Circle, Coinbase and Blockchain. Moreover, the ICE announced the Bakkt platform with Microsoft and Starbucks.
Even when we have these developments, the market keeps falling. Indeed, cryptocurrency enthusiasts are surprised that these projects are not giving strength to the market to take off and move the price up.
Some currencies such as EOS, TRON, IOTA and NEO are registering very hard drops since their all time high. That shows that sentiment is not in the right position to start again a bull run as we have seen in the past.
One of the main reasons that the market was not able to react positively to all these news was the fact that the ETF proposed by VanEck and SolidX has been postponed. The U.S. Securities and Exchange Commission (SEC) has decided to postpone the Bitcoin ETF, which could be approved just in 2019.
Since August 7, 2018, the market has lost $50 billion dollars after reaching $256 billion dollars.
The SEC is worried about markets being manipulated by important actors such as institutions or wealthy investors. Some time ago, a report showed that Tether (USDT) was being used to help bitcoin recover from hard drops.
Most of the other altcoins are also falling and reaching new lows. Currencies such as Bitcoin (BTC), Monero (XMR), Litecoin (LTC) or Bitcoin Cash (BCH) are performing much better than other projects such as Ethereum (ETH) or EOS. If we have a look at the charts, Bitcoin has been increasing its dominance in the last months, reaching levels not seen since December 2017.
There is not just a reason behind this weakness in the cryptocurrency world. Another factor could be related to ICO projects dumping their coins in order to fund their development plans.
At the moment of writing this article, the cryptocurrency market capitalization is $207 billion dollars, and Bitcoin is the most important virtual currency.