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After recording a $ 20 billion increase in valuation, the cryptocurrency market lost value, as the main bitcoin and Ethereum crypto fell by more than 4%.
No major factor
Two days ago, many analysts in the cryptocurrency industry claimed that a $ 20 billion decline in the value of the cryptocurrency market had been caused by FUD (fear, uncertainty , doubt). However, it was obvious that the market was not falling because of Binance, and it was excessive to conclude that major cryptocurrencies had decreased by more than 5% because Binance had received a simple letter from the financial services agency (FSA) by Binance CEO Changpeng Zhao.
“We received a simple letter from JFSA about an hour ago, our lawyers called JFSA immediately, and will find a solution.Protecting the interests of users is our top priority. Some negative news often proves positive in the long run The Chinese have a proverb for it New (often better) opportunities always emerge during periods of change “ says CZ.
It was obvious that the fall of the market was due to the Binance situation with the Japanese government, because even after the FUD had been clarified by the Binance team, the market continued to # 39; collapse. If a single factor in Binance caused the market to fall, this factor should also have been able to lead the market towards recovery.
The majority of space analysts try to justify every move in the market by news or ads, which is often extremely inaccurate and impractical. The cryptocurrency market fluctuates according to the supply and demand of the market. The market is still in its infancy, and it is comparable to the stock market valuation of the big banks and so it is possible that whales or large-scale investors initiate correlation movements in an attempt to influence the market.
In recent weeks, all major cryptocurrencies, including bitcoin and Ethereum, have been continuously volatile in the $ 8,000 and $ 9,000 region. Bitcoin went from $ 9,000 to $ 8,300, recovered at $ 9,100 and dropped to $ 8,500 today. These movements or daily volatility can not be justified by a factor. This is the culmination of many factors that influence the market.
By the end of 2017, the cryptocurrency market was extremely optimistic about the arrival of institutional and retail investors in tightly regulated markets such as the US bitcoin futures market. United. But, investor demand in the traditional finance sector does not match the expectations of cryptocurrency investors.
The next big move will probably be triggered by a wave of big investors entering the cryptocurrency market, and until then, the market will continue to remain volatile. Yesterday, the CEO of Binance CZ pointed out that volumes are coming back in all major stock exchanges. First, volumes need to rebound, and the price of cryptocurrencies can recover, before users and retail investors reach the market once again.
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