Why collapsed Bitcoin exchange rate, the expert described the main causes
The cryptocurrency market have several news shocks, and asset values plummeted. The total capitalization of digital money fell again to $200 billion, losing about $30 billion in just one day. The Bitcoin exchange rate is currently trading at $6421, a decrease of -12,66% for the day.
Reducing Bitcoin also pulled a drop and altcoins. Ethereum fell -19,56% and now costs only $228, which corresponds to the levels of September 2017. Ripple fell by -12.48% $0,2885, quotes Bitcoin Cash decreased by -20,35% to $499 per coin.
The market fell very sharply and very heavily, not a single token of the first hundreds of cryptocurrencies on Coinmarketcap version did not remain in the “green zone”. The next target for the price of Bitcoin is $5777 per coin, and in case of breakdown – $5000 per BTC. Panic cries that Bitcoin goes to $3000 is premature, even if the reduction is so large, vysheozvuchennoy support a short-term, but to keep the market down.
The reason for this sharp decline of exchange rate of bitcoin to name a few. First is the news that Goldman Sachs decided to launch a cryptocurrency trading, putting the main reason why the lack of clarity in the regulation of cryptocurrencies. The Bank is ready to revisit the issue of granting clients the opportunity to trade in digital currencies, but only after this issue is settled.
However, Goldman Sachs will continue to provide its customers with the opportunity to trade cryptocurrency contracts for difference (CFD) that allows you to earn on the change in market value without the need for ownership of the underlying asset.
However, apart from Goldman Sachs, one of the reasons for the fall in the value of bitcoin and altcoins could act as transactions related to the activation of crypto, presumably associated with the Silk Road website, a black market that has become known for selling drugs and weapons the organizer of which was arrested by the FBI in 2013, and is currently serving a life sentence.
Crypto wallet, presumably associated with Silk Road, which contains BTC to $1 billion and dormant for 4 years, recently demonstrated the activity became aware of the transfer of $100 million in bitcoins on the crypto currency exchange Bitfinex, Binance and BitMEX. It is possible that these transactions were carried out with the purpose of the sale of cryptocurrencies and receive Fiat currency, which naturally led to a drop in the cryptocurrency market.
While the market there is nothing to please captainvalor, positive news is not enough. In the absence of clarity on the regulatory issues and the outstanding issue of the ETF conservative and safe will be the solution to observe the market from outside.
“International Financial Center”