Why Are Cryptocurrencies Dropping

Why Are Cryptocurrencies Dropping
Why Are Cryptocurrencies Dropping Image link: https://en.wikipedia.org/wiki/Mick_Mulvaney
C O N T E N T S:

KEY TOPICS

  • Bitcoin recorded a huge loss of over 50% in February, with valuation dropping below $7,000.(More…)
  • Bitcoin and other cryptocurrencies may be dropping in value as weak hands exit the market, but fundamental factors and common sense dictates that Bitcoin is primed for a dramatic bull run that will likely have McAfee breathing a sigh of relief.(More…)
  • We’ve got people in the daily thread talking about depressingly watching their investment slowly bleed to zero, or talk about btc dropping to 4k or lower, or comments like “I wish I just invested in bitconnect, at least it would’ve been overwith quicker” and these posts are actually getting majority upvotes.(More…)
  • Bitcoin has had a rough time over the last couple of months, failing to recover after dropping from a high of almost $20,000.(More…)

POSSIBLY USEFUL

  • From $260 billion to $241 billion, the valuation of the cryptocurrency market has dropped by over $19 billion in the past 24 hours, as major cryptocurrencies including bitcoin, Ethereum, Ripple, Bitcoin Cash, and EOS fell by large margins.(More…)

RANKED SELECTED SOURCES

KEY TOPICS

Bitcoin recorded a huge loss of over 50% in February, with valuation dropping below $7,000. [1] The digital currency is one of the biggest laggards this year, dropping roughly 90 percent after starting the year above $2.30, according to historical data from CoinMarketCap.com. [2] With the price already dropping 40% year-to-date, it is not guaranteed to always be so. [3]

Bitcoin and other cryptocurrencies may be dropping in value as weak hands exit the market, but fundamental factors and common sense dictates that Bitcoin is primed for a dramatic bull run that will likely have McAfee breathing a sigh of relief. [4] Bitcoin fell 2% early on Wednesday, dropping as low as $6,385. [5] Bitcoin was just a few dollars away from dropping below $10,000, but it bounced back around $11k, a 15% drop from two days before. [6] Ether is losing ground almost every day, dropping lower and lower today it has lost 11.28%. [7]

We’ve got people in the daily thread talking about depressingly watching their investment slowly bleed to zero, or talk about btc dropping to 4k or lower, or comments like “I wish I just invested in bitconnect, at least it would’ve been overwith quicker” and these posts are actually getting majority upvotes. [8] It’s a reverse of the climb, it drops, then increases, then drops further – overall, it’s dropping. [8]

Bitcoin has had a rough time over the last couple of months, failing to recover after dropping from a high of almost $20,000. [9] The world?s best-known cryptocurrency lost $500 (372) in an hour, dropping to $6,627 on the Luxembourg exchange Bitstamp, while most other digital currencies also recorded large losses. [10] Around November, I finally located the fraction of one that I had forgotten about sometime in mid-2014 and watched as the cryptocurrency’s value nearly hit $20,000 in December before dropping by nearly half to its current (still remarkable) price. [11] After rocketing to a high above $19,500 last Sunday, bitcoin’s price has been steadily dropping this week. [12] Week after week, month after month, the bad news was piling up, and the prices kept dropping. [13]

POSSIBLY USEFUL

From $260 billion to $241 billion, the valuation of the cryptocurrency market has dropped by over $19 billion in the past 24 hours, as major cryptocurrencies including bitcoin, Ethereum, Ripple, Bitcoin Cash, and EOS fell by large margins. [14] Naturally, as the valuation of the cryptocurrency market fell by large margins, an increasing number of investors have started to lose interest in the market and confidence in the short-term rally of both major and emerging cryptocurrencies. [15]

Big investors are convinced cryptocurrencies are here to stay and will compete with traditional currencies and assets such as the U.S. dollar and gold, and that is what really matters. [15] According to Salzman, Voorhees emphasized that it is inevitable cryptocurrencies like bitcoin and ether will replace fiat currencies like the U.S. dollar in the future. [15] On December 17, 2017, the value of Bitcoin had risen to an all-time high ($19,850) as had several other major cryptocurrencies. [1] Throughout April and May, tokens such as Ontology, ICON, and 0x outperformed bitcoin, Ethereum, and almost all major cryptocurrencies in the market. [14] The price of most cryptocurrencies like bitcoin, Ethereum, Bitcoin Cash, EOS, and Ripple have more than halved. [15] The unexpectedly large increase in the value of EOS led the fall of EOS to intensify, and ultimately led the cryptocurrency to record a bigger loss than other major cryptocurrencies. [14] For a third day in a row, EOS, the delegated proof-of-stake (PoS) network based on the Ethereum blockchain protocol, has recorded the biggest loss amongst major cryptocurrencies. [14] According to Dager Contreras, co-founder of Ocular, developments such as blockchain security and compliance will allow investors to feel safe when investing in cryptocurrencies. [1] Speculation about cryptocurrencies being a bubble which could burst at any time has also led to an increase in fear among many. [1] Several warnings were given as to why people should avoid investing in cryptocurrencies on the premise of the volatile nature of the market. [1]

I think this is being fuelled by government, I think this is being fuelled by regulators, I think this is being fuelled by nervous banks, I think this is being fuelled by all sorts of, however you want to put it, elites in the government and regulatory positions to further time down the price of cryptocurrencies because they do not want to give legitimacy to the Cryptocurrency and blockchain revolution that’s happening right now. [16]

Those in the cryptocurrency world were shocked this morning, as ten of the world’s largest cryptocurrencies took a massive plunge. [17] In this future scenario, the effective use of blockchain tech by different companies might commoditize cryptocurrencies, including bitcoin. [3] Bitcoin is struggling but cryptocurrencies known as “alt-coins” were faring much worse on Tuesday. [2] Bitcoin has had a tough week but it was other, lesser-known cryptocurrencies leading the selling-spree Tuesday. [2]

The entire market value of cryptocurrencies has tumbled 69 percent this year, and in the past 24 hours fell by $19 billion, according to the CoinMarketCap.com data. [2] Chinese and South Korean Governments are going to have a huge impact on not just the current price of cryptocurrencies, but also what neighbouring governments might decide to do. [17] CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. [18] Ronnie Moas, a stock picker who has turned his attentions towards cryptocurrencies as well, believes the Bitcoin price is being manipulated. [19] There are lots of transaction fees to consider when using cryptocurrencies to make purchases including exchange, network, and wallet fees. [3] “Putting money into cryptocurrencies is a speculative thing to do. [20] The Motley Fool is short shares of IBM. The Motley Fool recommends Nasdaq and has no position in any cryptocurrencies mentioned. [3]

Bitcoin and other cryptocurrencies had rallied last month after news of institutional interest from asset management giant BlackRock, as well as a collaboration between New York Stock Exchange owner Intercontinental Exchange, Starbucks and Microsoft on a digital asset platform. [2] Another possibility is that blockchain technology lives up to all the hype and bitcoin and the other cryptocurrencies are simply deemed unnecessary. [3] The U.S. agency has not specifically commented on the status of other cryptocurrencies, yet top executives at Ripple maintain that XRP is “absolutely not a security.” [2] “I don’t think many people correlate ‘Blockchain adoption’ with ‘Bitcoin price’ or other cryptocurrencies. [19] The same thing goes for any of the other altcoins and other cryptocurrencies that are experiencing these dips and these drops. [16] Bitcoin’s drop to an 11-day low of $7,438 is hogging the limelight, as usual, but other cryptocurrencies are struggling, too. [18] Other cryptocurrencies can facilitate multiple times that number of transactions per second. [3]

The New York Times report on the study explained that a “concentrated campaign of price manipulation may have accounted for at least half of the increase in the price of Bitcoin and other big cryptocurrencies last year.” [5] A big question is whether or not the SEC considers cryptocurrencies like bitcoin (BTC-USD), Ethereum, and other major coins to be “securities.” [21] Bitcoin touched below $6,000 and dozens of smaller digital tokens including Ether retreated as this month’s sell-off in cryptocurrencies showed few signs of letting up. [22] “Most cryptocurrencies have been overvalued for a very long time,” said Samson Mow, chief strategy officer at blockchain developer Blockstream Corp. “It’s hard to pin this move on any particular factor, but it feels like the opposite of last year when money piled in as people felt FOMO. Now it’s piling out as they sense panic. [22] As an example to illustrate why this could be important, an exchange like Coinbase, which doesn’t offer ICO tokens and just focuses on a few major cryptocurrencies, could be exempt from registration. [21] Major cryptocurrencies fell sharply Wednesday as reports of a system errors at a popular exchange platform appeared to unsettle investors. [23] While cryptocurrencies rallied in July on hopes that a Bitcoin-backed exchange-traded fund would attract new investors, U.S. regulators have yet to sign off on multiple proposals for such a product. [22] The total market capitalization of all cryptocurrencies is hovering around $450 billion, down ~30 percent from $650 billion just 48 hours ago. [6] Ether sank as much as 13 percent, while all but one of the 100 biggest cryptocurrencies tracked by Coinmarketcap.com recorded declines over the past 24 hours. [22] Over the past few days, the cryptocurrency market has recorded losses, with ETH one of the top losers amongst the leading cryptocurrencies. [24] Here’s a look at the 10 largest cryptocurrencies by market capitalization, and how much each has fallen over the past 24 hours. [21] Most other major cryptocurrencies — such as Ethereum, Ripple, bitcoin Cash, and Litecoin — are also declining. [21] It said the issue was first noticed on Tuesday, with millions of dollars-worth of cryptocurrencies being stolen, but claimed that the financial losses would be compensated using its own virtual cash reserves. [25] If the Tether issuers wish to legitimize Tether and avoid scrutiny, they can convert some of their cryptocurrencies to U.S. dollars and retrospectively provide dollar reserves for Tether.” [5] It’s unlikely that recent global market turbulence, fueled by Turkey’s currency crisis, is impacting cryptocurrencies, said James Quinn, head of markets at Kenetic, a blockchain company with investment and advisory businesses. [22] “Correlations historically have been extremely low between cryptocurrencies and other asset classes,” he said in a phone interview from Hong Kong. [22] Crypto-exchanges are used to trade in cryptocurrencies, but many have suffered major hacks and cyberattacks over the years. [25] Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. [26] The Motley Fool has no position in any cryptocurrencies mentioned. [21]

There has been a lingering fear among cryptocurrency investors that the SEC and other entities could tighten regulations, so the drop in bitcoin (BTC-USD) and other cryptocurrencies in the wake of this announcement isn’t too surprising. [21] After skyrocketing in value in 2017, Bitcoin and other cryptocurrencies have collapsed through much of this year. [5]

Altcoins, which had taken a backseat to bitcoin?s surge, picked up the slack to push the market valuation for cryptocurrencies past the $600 billion mark. [26] Much like the sharp increases of 2017, the steep declines for cryptocurrencies over the past few months are hard to fully explain. [5] The overall market capitalization for cryptocurrencies was $619.8 billion, up from yesterday?s $591.1 billion. [26]

The price of the top cryptocurrencies fell sharply on Friday, with bitcoin falling near its year-low, after Japanese regulators ordered BitFlyer and five other cryptocurrency exchanges to improve security measures. [27] Cryptocurrencies such as bitcoin are powered by the technology known as blockchain, which is akin to an anonymous digital ledger. [28] The technical analysis on Bitcoin – and cryptocurrencies in general – is being surrounded by bears. [29] Coinbase?s e-money license will extend beyond the UK to 23 countries within the EU. The licensing represents a significant move from the UK FCA in officially recognizing Coinbase as adhering to regulatory rules and the UK Payment Services Directive, reinforcing the legitimacy of cryptocurrencies and, by extension, Bitcoin. [4]

Governments around the world are increasing scrutiny of cryptocurrencies as soaring prices attract everyone from mom-and-pop investors to Wall Street banks. [30] Governments are likely to regulate them more-and-more, especially links between cryptocurrencies and local banks. [31] Governments may not be able to control cryptocurrencies themselves (or offshore gambling sites), but they can control banks. [31] Without banks as an intermediary, citizens of affected countries will find it difficult to move money to and from cryptocurrencies, drastically reducing demand for those currencies. [31] Far more people are putting money into cryptocurrencies than truly understand them. [31] I am suggesting that people should invest money into cryptocurrencies that they can afford to lose. [31] If you had money in cryptocurrencies, it’s almost guaranteed you now have less money in cryptocurrencies than 24 hours ago. [31] I also suspect that cryptocurrency value will, over the long-term, track the usage of cryptocurrencies. [31] Even if lawmakers push forward with the exchange ban, local investors are likely to find ways to keep buying cryptocurrencies, said Mike Kayamori, head of Tokyo-based exchange Quoine, which counts Koreans among its customers. [30] The country’s prime minister has said that cryptocurrencies might corrupt the nation’s youth, and the government warned in December that it would conduct on-site investigations of exchanges. [30] To date, nine of the top 10 cryptocurrencies are down in the past seven days by an average of 18.2 per cent, according to CoinMarketCap. [29] Other investors should be able to say the same, or they should stay away from cryptocurrencies entirely. [31] Wednesday?s U.S. Congressional hearing on cryptocurrencies and ICO markets demonstrated that U.S. legislators are drifting toward a positive stance on the regulation of cryptocurrencies, with Rep. Ted Budd stating during the hearing that crypto regulation is “something that the U.S. has to get right” to avoid the U.S. falling behind in finance and technology innovation. [4] It is primarily just to roughly track Buffett’s suggestion that cryptocurrencies are in for a rough next five years. [31] Based on those beliefs, I think cryptocurrencies will be worth something someday. [31] In the time I have held cryptocurrencies, I have never purchased anything with them. [31]

One thing is clear that investors have started looking out at other cryptocurrencies and altcoins and Bitcoin is now no more the major driving factor to decided the overall market momentum. [32] The country?s swift embrace of bitcoin and other cryptocurrencies has been met with an equally swift backlash by regulators, who have gone so far as to propose outright bans on trading. [31]

This could cause both short- and long-term issues for cryptocurrencies, since price will ultimately depend on demand. [31] CryptoSlate takes no responsibility should you lose money trading cryptocurrencies. [4]

Other reasons investors could be feeling the FUD include a blog post from the IMF that called on government regulators to implement new rules around cryptocurrencies due to their potential as a “major new vehicle for money laundering and the financing of terrorism.” [9] Cryptocurrencies are not necessarily scams by default, but U.S. regulators have warned that there?s a high risk of fraud in this market. [9] The U.S. House of Representatives Financial Services Committee began a session on “Examining Cryptocurrencies and ICO Markets” at 10 AM that can be streamed here. [9]

Now, the crypto-king has declared its dominance once again as it becomes the coin that’s used the most on Bitcoin Superstore, a platform that allows users to shop online using cryptocurrencies from 200K stores worldwide (including the likes of Starbucks and Amazon). [13] NEW YORK (Reuters) – Cryptocurrencies plunged on Friday, with bitcoin at one point sliding below $8,000 and headed for its biggest weekly loss since December 2013, amid worries about a regulatory clampdown globally. [33] Critics of virtual currencies have called the run-up in prices a speculative bubble, but supporters of cryptocurrencies say short-term price volatility is to be expected, and the blockchain technology underpinning these assets maintains its power and value. [33] The market value of cryptocurrencies is calculated by multiplying the number of digital coins in existence by their price, although many question whether that is the right way to value them. [33] Many of these cryptocurrencies are still worth several times what they were a year ago, despite being down roughly 40 to 70 percent from their highest prices in many cases. [11] The value of all cryptocurrencies has now dipped to $250 billion – having lost an astonishing $580 billion in value from record highs late last year. [34] This week’s slump brought the total market value of cryptocurrencies down to around $400 billion, half the high it reached in January, according to industry tracker Coinmarketcap.com. [33]

The attack on CoinRail will hopefully not have any long-lasting effect on Bitcoin and other major cryptocurrencies like Ethereum, Ripple, Litecoin or Bitcoin Cash. [13] It has been observed that major cryptocurrencies including Bitcoin, Ethereum, Ripple and Bitcoin Cash had rebounded after the hacks. [13]

He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. [35] The investors’ confidence started coming back, and we even saw an increase in interest in cryptocurrencies. [13] Most analysts attribute the dramatic decline of cryptocurrencies to speculation about government regulation across the world. [34] Regulators say cryptocurrencies are highly speculative and dangerous investments. [33]

Ethereum, Ripple, Bitcoin Cash and other cryptocurrencies had fallen by 5% or more. [13] A number of other cryptocurrencies are what are known as ERC20 tokens that actually operate within the Ethereum ecosystem. [11]

The Bitcoin price and many other cryptocurrencies have dropped after the news of the South Korean exchange hack was released. [13]

CoinMarketCap came under scrutiny earlier this year when it delisted South Korean exchanges, causing rapid jumps in the price of cryptocurrencies. [36] According to a Cointelegraph article (Oct. 8, 2017), “How Blockchain Helps Pave the Way for More Autonomous Governance,” “?independence movements are being supported by?the introduction of the cryptocurrencies, particularly Bitcoin, and their underlying Blockchain technology. [37] Home Cryptocurrency Bitcoin Llew Claasen: Bitcoin will hit $40,000 and 90% of the cryptocurrencies will. [38] At this stage, bitcoin and cryptocurrencies will be greatly affected by speculations. [38] Only a few tokens out of hundreds of cryptocurrencies continued to rise or plateau despite the bitcoin debacle. [39] Though bitcoin may have a limited use case, it has been tipped to remain the king of all cryptocurrencies. [38] Do not invest your life savings in bitcoin or cryptocurrencies generally. [38] Overstock accepts “dozens of cryptocurrencies,” the company insisted, and “plans to use the Bitsy service to offer bitcoin for sale on the Overstock website.” [37] In a recent interview, Sonny Singh, the chief commercial officer (CCO) of Bitpay, Inc, shared his outlook for the cryptocurrencies, emphasizing his optimism for the bitcoin markets, whilst also espousing a grim outlook for altcoins. [37] This is the reason why investors are again turning bullish on cryptocurrencies and think that they will increase in value further. [38] The growing use of the cryptocurrencies could help drive the success of secessionist movements around the world as digital currencies can be used by separatist states to finance their own governments?” Why the Revolution is Dismissed The crypto community makes the mistake of looking to investors, traders, and businessmen for political and historical analysis. [37] Bitvo?s developers explain that the relative strength of cryptocurrencies is evaluated by an artificial intelligence model which generates a quantitative score comparing the relative strength of a particular cryptocurrency with the overall strength of the market on a particular day. [37] In May of this year, they indicated their strong opposition to the launch of a new device by the Chinese mining giant Bitmain designed to process transactions for the privacy coin working with the Equihash algorithm used by Zcash and other similar cryptocurrencies like its fork Horizen. [37] The document states that companies wanting to carry out transactions involving cryptocurrencies “must request authorization from the Bank of Mexico so that they can use those technologies associated with any of the virtual assets” approved by the bank. [37] Noting that the fintech law defines cryptocurrencies as “virtual assets,” Gonzalez reiterated that “the Bank of Mexico will establish which ones may be used in Mexico and which fintech or banks may carry out transactions with them,” El Universal conveyed. [37] Central Bank Is in Charge Companies may only handle the cryptocurrencies that the Bank of Mexico determines to be appropriate, the circular explains. [37] The Bank of Mexico will decide which cryptocurrencies are legal and fintech companies must gain approval from the central bank to operate in the crypto space. [37]

This comes as the market capitalization of cryptocurrencies dropped to $191 billion, its lowest total since early November. [36] He further added that 90% of the cryptocurrencies will actually fall. [38] Many of the enthusiasts are actually predicting higher peaks as well as newer peaks for the cryptocurrencies. [38]

Here at NewsBTC, we are dedicated to enlightening people all around the world about bitcoin and other cryptocurrencies. [40] Other cryptocurrencies such as ether, XRP and lumens and bitcoin cash all plunged between 15 to 24.6 percent over the past 24 hours. [39] Many of the other cryptocurrencies have been consistently rising in the past couple of weeks. [38]

The aforementioned fintech provisions “indirectly affect the management of virtual assets,” the publication noted, adding that “the general provisions for cryptocurrencies” are expected to be published before March 10, 2019. [37]

RANKED SELECTED SOURCES(40 source documents arranged by frequency of occurrence in the above report)

1. (13) Bitcoin Is Fading Fast: Interest Is Dropping, And Price With It – Winklevoss Bitcoin Trust ETF (Pending:COIN) | Seeking Alpha

2. (11) CryptoCurrency News, Rumors, and Chatter | PiMP Forum

3. (8) Llew Claasen: Bitcoin will hit $40,000 and 90% of the cryptocurrencies will fall (Bitcoin Price Predictions 2018) – Bitcoin Price Today -Sat Sept 15 | Smartereum

4. (7) Bitcoin Price Drop after South Korean Exchange Hack – Global Coin Report

5. (6) XRP and ether drop double digits in massive cryptocurrency sell-off

6. (6) Here’s Why Bitcoin Just Dropped Below $10,000 Again

7. (6) Bitcoin and Ether Price Drop as ‘Sense of Panic’ Grips Crypto – Bloomberg

8. (6) 8 Reasons Bitcoin Could Drop By Another 50%

9. (5) Explaining The Dip: What Caused The Recent Cryptocurrency Downturn

10. (5) Bitcoin skids amid broad cryptocurrency sell-off | Reuters

11. (5) Bitcoin Price Manipulation: Tether Inflate Cryptocurrencies? | Money

12. (4) Cryptocurrency Market Drops to $241 Billion, EOS Takes a Huge Beating

13. (4) Why Large Investors Arent Scared by the Bitcoin Price Drop

14. (4) No, Bitcoin Isnt Crashing: 3 Reasons Why Bitcoin Is About to Explode | CryptoSlate

15. (4) https://gizmodo.com/google-bans-cryptocurrency-advertising-and-bitcoin-con-1823760813

16. (3) Yes, Bitcoin Crashed. But Another Big Cryptocurrency Is Pushing Record Highs Again | Inc.com

17. (3) Bitcoin Price Continues Falling as Cryptocurrency Market Crosses $600B | Investopedia

18. (3) Bitcoin prices drop as South Korea considers banning cryptocurrency exchanges

19. (2) Why Are Cryptocurrencies Falling? Should I Buy, Sell or Wait!? – CryptoCamacho.com

20. (2) The Price Of These Cryptocurrencies Just Crashed And Here’s Why – Narcity

21. (2) Major Cryptocurrencies Are Hitting 2018 Lows Today – CoinDesk

22. (2) Bitcoin?s Falling Price Nothing More Than Perception, Or Is There Manipulation?

23. (2) Bitcoin Price Drop: Cryptocurrency Exchange Hack Wobbles Market

24. (2) Will Cryptocurrencies Keep Falling? | Al Bawaba

25. (2) Going down: Bitcoin & crypto market dropping into danger territory — RT Business News

26. (2) Inside Bitcoin | Inside

27. (2) Why Are Ethereum, Ripple Prices Dropping? Cryptocurrencies Dip As Bitcoin Value Falls

28. (2) Bitcoin drops below $10K after three days of cryptocurrency correction TechCrunch

29. (2) Why this drop means nothing. : CryptoCurrency

30. (1) Bitcoin price plunges after cryptocurrency exchange is hacked | Technology | The Guardian

31. (1) Bitcoin?s price plunges amid broad cryptocurrency sell-off | Ars Technica

32. (1) Cryptocurrency Investors Worry, Wait After Bitcoin Price Drop : The Two-Way : NPR

33. (1) Bitcoin price drop gathers momentum as potential Binance glitch unsettles investors – MarketWatch

34. (1) How Low Can Ethereum’s (ETH) Price Drop? | Crypto Gazette – Daily Crypto News, Articles & Tips | StocksGazette.com

35. (1) Bitcoin Drop Sparks Broad Cryptocurrency Selloff – MoneyBeat – WSJ

36. (1) Bitcoin price drops amid fears of a regulatory crackdown

37. (1) Ethereum Remains Rock Solid In the Falling Market While Other Cryptocurrencies Plunge | CoinSpeaker

38. (1) Cryptocurrency Markets Bounce Back After Harsh Drop – Crypto Disrupt

39. (1) NewsBTC | Bitcoin news, price, information & analysis

40. (1) Cryptocurrency Prices for the 31st of July: BTC Dropped to $8000 | The Coin Shark