The prices of the major cryptocurrencies have seen figures painted in blood recently. The largest cryptocurrency in the world, bitcoin, has since Sunday dropped from 8,500 dollars to 7,850 on Wednesday.
Even though the price fall by now seems to have come to a halt, many ask themselves what caused the steep fall.
Several possible reasons
The crypto news site CCN describes three possible reason to the market’s current move downwards.
1) The decision of Hong Kong based cryptoexchange Bitfinex to disclose tax information regarding users to authorities.
2) The recent scandals involving the two major South Korean crypto exchanges UPbit and Bithumb.
3) The trustee of the former crypto exchange Mt. Gox has been selling of remaining assets.
“There are fears that China will further increase the strict regulation”
According to Naeem Aslam, chief market analyst at Think Markets, the price fall may be connected to concerns associated to upcoming regulations.
– The recent selloff has come from the news out of China that the ICO [initial coin offering] market is still very active and there are fears that China will further increase the strict regulation, says Naeem Aslam, according to Marketwatch.
People seem to be selling
The price falls also coincides with many people seemingly selling off their cryptocurrencies. The total market cap for all currencies is down at a new monthly low, according to Coinmarketcap.
Also in trading volumes for bitcoin, new lows are seen.
Although the market is bearish, positive voices are still being heard. One example of this being John McAfee, who predicts price surges coming up pretty soon.
In a tweet this Monday, he states that new money primarily will be coming in from institutional investors.
