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. A large part of the reason for this is market manipulation.
Traditionally, Bitcoin has been dominating the market, but it also decreased to $2,042 as of the moment of writing. No wonder investors are concerned of low prices – especially in reference to amateur investors who bought at a higher price.
Experts talk about three possible reasons for such price drops:
The Bitcoin Network may split in two
The network is beginning to split into those who support the change in protocol and those who stick to the current protocol. This split looks like it could result in massive Bitcoin devaluation.
Uncertainty regarding August 1st
August 1 will definitely be an important day for Bitcoin and other blockchain-based cryptocurrencies due to the looming Bitcoin hard fork.
An unregulated market
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. Add 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. 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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