Bitcoin’s price declined by 64.5% on December 17, 2017. The combined market capitalization of the industry now stands at just 338 billion dollars, but a photo says a thousand words.
This is a big fall for any market. But, a price crash in Bitcoin or any other cryptocurrency is nothing new. Bitcoin dies and returns to life on a regular basis. A website estimates that Bitcoin’s death toll is 249 and counts, dating back to 2010.
2017 was the deadliest with 109 stories that proclaim the end of Bitcoin.
What causes the Bitcoin collapse?
A lot of bad news has led to a massive recession in the crypto economy. Bitfinex draws the fury of the US futures trading commission, as the exchange site offers users an option to bind their currency to the US dollar. The suspect problem is that Bitfinex and Tether cannot necessarily prove they have enough money in their bank accounts to support the USDT.
Abroad, India opposes traders. The government is analyzing transactions on multiple scholarships to try to collect tax revenue. Estimates indicate that 3.5 billion dollars in sales have found their way through India in the past 17 months that led to 2018.
Moreover, then there is South Korea. The country has no intention of banning the trading of cryptocurrency. Although the government has taken steps to eliminate anonymity from the equation. South Korean traders must now use their real names.
All of this contributed to the bloodbath.
The Dow Jones Industrial Average reached a three-week low due to US government bond yields rising. It’s not just the crypto market that feels burning. The world is also fiat.
Finding The Bottom of The Rock
Even the most novice investors are aware of the old saying “buy low, sell.” The mystery is, when will it be low enough? The truth is not known. Observing the chart above, Bitcoin’s most serious accident lasted 411 days, ending in January 2015. Diving of the nose made a low wage of 87%.
Currently, the price has fallen by 64.5% over the past 51 days. If this happened on the stock market, news media would name 2008 again everywhere. Of course, much of the global economic crisis, a decade ago, is since the US government gave subprime mortgages to consumers who could not afford to pay for the homes they lived.
In the case of cryptocurrency, the increased regulation is the reason for the accident. This is undoubtedly bad news for short-term investors. Those who develop in the long run, nevertheless, see the regulation as a necessary move in the ongoing struggle to legitimize cryptocurrency and bring it into the country of mass adoption.