Over the last month, the total market capitalization of the cryptocurrency market has dropped from $110 to $70 billion. The price for all the cryptocurrencies, whether we analyze Bitcoin or Ethereum, has been falling for the last several days.
Traditionally, Bitcoin has been dominating the market but it also decreased up to $2,042 as of the moment of writing. No wonder that investors are pretty much concerned of low prices – it especially refers to amateur investors who bought them at a much higher price.
Experts talk about three possible reasons for such price drop.
If the Bitcoin network is split in two parts – those who support the change in protocol and those who stick to the current protocol, it can simply result in massive Bitcoin devaluation.
Furthermore, August 1 will definitely be an important day for Bitcoin as well as for other blockchain-based cryptocurrencies. A great deal of the problem lies in the unregulated cryptocurrency market. Actions that that would put individuals in jail in stock market trading are completely unregulated and therefore legal in the world of cryptos.
No wonder traders manipulate the market to cash out. Put market manipulation to the panic that constantly arises among amateur investors once the price falls and you will understand the reason behind the current price fall.
As we step back and look at the blockchain market as a whole, not all the cryptocurrency and blockchain startups are meant to disrupt the financial system but some certainly have the chance. Yet, the more mainstream the cryptocurrency market becomes the more market cap and prices grow. This is just the beginning.
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