State Of The Crypto Markets: What On Earth Is Going On With Bitcoin And Blockchain’s World?
What Is going On In The Crypto World?
About four days ago, the crypto markets began to crash hard. Now the race to the bottom appears to have picked up more speed. The BTC is a good example of this. In the last few months, it has managed to remain above $6000. However, it just a few days, it has fallen to about $4,400. Everything else appears to be in the red. Just a few months ago, Ethereum was at $700, now it is hovering around $140.
What Is Going On?
There are various theories on what is going on in the crypto world. The outcome of all events is that sentiment has been turned quite bleak. No one is realistically expecting a bull run anytime soon. Besides that, regulatory pressure on crypto has been mounting for a while now. There is also the fact that shady participants in the market are cashing out.
Bag Holder Theory
November had been expected to be a perfect month for crypto. Sites like FortuneJack were praising the stability of BTC. Even crypto experts were optimistic while others were pessimistic. Eric from the shapeShift project felt that the coming crash of the global financial system would be good for crypto holders. Others, such as the CEO of Binance, are still optimistic; they expect a bull run in 2019.
The sum total is that it leads to crypto hype have a major effect on the market more than it should. It can be hard to determine whether to believe the experts or your own eyes. In the end, the crypto hype has been out of sync with the reality on the ground. The reality indicated that things were nose-diving. However, those who had invested in crypto might have needed some time to get out. This is according to the founder of Altrean, Travin Keith.
Tether, owned by Bitfinex has long been accused of having a hand in manipulating the market price of BTC. The Bitfinex exchange claims that each Tether, about $2.7 billion in total, is connected to an actual dollar. However, no one has ever been able to prove the claim.
In fact, researches at the University of Texas has accused Tether of playing a crucial role in pumping the price of BTC. There are even reports that authorities in the US have subpoenaed Bitfinex and Tether.
A report on Bloomberg shows that the Justice Department believes Bitfinex played a role in pumping the price of BTC to $20,000 last year. Without the artificial price pumping by Bitfinex due to the hawk-eyed government, it might be the reason why the market is in free fall.
SEC On ICOs
The SEC has also been coming down hard on ICOs. In the past few years, companies have been able to raise millions of dollars in just a few minutes. However, that era is long gone and the hype has died. On a market that relies on hype, this might explain the current crush. However, for some, it is not whether crypto will survive. It is about whether the technology will live.