Here are 7 crypto experts explaining why the markets are falling

Here are 7 crypto experts explaining why the markets are falling.

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The crypto markets are falling. But why is this? Trijo News asked a number of experts in the industry what they think the decline are due to.

ANNONS

It has been really shaky in the crypto markets over the past week. But what is really the reason for the price falls?

Now, seven crypto experts give their idea of what the downturn may be due to.

Eric Wall: “Craig Wright’s escapades create anxiety”

Head of cryptocurrency at the fintech company Cinnober.

Eric Wall.
Eric Wall. Image source: Private

“The SEC made a very clear statement against ICOs by requiring Paragon and Airfox to compensate the investors because they illegally sold unregistered securities to them. Bitcoin and ethereum have been the main means of payment for ICO investments, and when one of the uses for the currencies is erased, markets fall.

The split of bitcoin cash also shows how vulnerable cryptocurrencies are against social attacks, and how bad user experience is in the mess that comes with that. Even for the infrastructure players, the task will quickly become overwhelming if this trend continues. Craig Wright’s escapades create concern among many people regarding the entire cryptocurrency concept.”

Jonathan Svensson: “Not at all worried”

Co-founder of the crypto startup Altpocket.

Jonathan Svensson.
Jonathan Svensson is one of the founders of the startup Altpocket.

“I think that many are selling now because of tax reasons, but I’m not worried at all. Looking back at the bitcoin graph, it has previously fallen into a similar pattern. The question is only when the next bull run comes – is it in two months or in two years?”

Christian Ander: “Craig Wright is angry”

Founder of the Swedish bitcoin broker Btcx.

Christian Ander.
Christian Ander. Image source: Private

“Craig Wright, Satoshi, is angry because no one bought his chain and retaliates by selling some loose change from his laptop.”

Torbjørn Bull Jenssen: “I have never been more optimistic”

CEO of the Norwegian investment company Arcane Crypto.

Torbjørn Bull Jenssen.
Torbjørn Bull Jenssen. Image source: Press image

“The reason is that we come from a euphoric bubble that ended at New Year. Too many coins and tokens were priced too high. Since then, the market has corrected itself and there has been a downward trend throughout 2018. It then planned out, but did not turn around.

In recent months, the market has moved horizontally and awaited something that would give a clearer direction. This has been achieved when the market now has broken down through technical support levels.

An important event that may have contributed to this case was the conflict around bitcoin cash. It has both created investor uncertainty and has probably resulted in a significant sale of bitcoin to finance the mining war between “bitcoin cash abc” and “bitcoin cash sv”.

Another important event is clearer regulation by the SEC (U.S. Securities and Exchange Commission), who comes down on ICOs and exchanges that do not comply with the U.S. regulatory framework. This is positive in the long run because it provides predictability, but in the short term, it pulls down the entire market.

Also, there are several crypto and ICO hedge funds that will now have to shut down due to major financial losses. They will sell off what they need from cryptocurrencies and tokens, which helps to pull down the market.

Overall, I think the correction we have seen in 2018 and the leakage we are seeing now is positive. 2018 has been the year with the best news and I have never been more optimistic considering the continued development of cryptocurrencies and the use of open blockchains. At the same time, as mentioned, too many coins and tokens were priced completely wrong. Now the market is clearer in this. Bad and overrated projects go bankrupt so we can build on from a more solid starting point when the dust has settled.”

Carl Gärdsell: “The market will likely take some time to recover”

Co-founder of the crypto startup Superblocks.

Carl Gärdsell.
Carl Gärdsell. Image source: Private

“Overall, there is great uncertainty in the market due to divided communities (bitcoin cash) and ICOs that have been forcefully shut down by the SEC. Statistics show that inflow of capital into ICOs have dwindled ($76 million in November 2018 versus $1,500 million in January 2018).

Many of the ICOs that did raise capital through ether or bitcoin are also reaching the point where they need to sell large quantities to sustain their operational costs that are typically priced in fiat. Combined with the low inflow of capital and the forced sellout by ICOs, the market will likely take some time to recover.”

Jimmy Zhao: “A meaningless race”

Co-founder and CMO at the crypto exchange Zbx.

Jimmy Zhao.
Jimmy Zhao. Image source: Facebook

“Bitcoin cash community dump their bitcoin for a meaningless race.”

Benjamin Dahl: “Nothing special”

Swedish Blockchain Association.

Benjamin Dahl.
Benjamin Dahl. Image source: Private

“This correction comes from an extremely overbought market and is nothing special. We have seen the same scenario play out several times before. Last summer, a bitcoin costed about $2,500. The summer before that between $500 and $600.

People generally should replace “linear scale” to “log scale” when looking at graphs and at least have the view of a couple of years regarding their investments and speculations.

The same over-bought position that we had at the end of 2017 for crypto is recognized in the traditional financial markets, only that that bull market has lasted for ten years. My belief is that the upcoming correction will favor digital assets in general and accelerate the adoption of decentralized currencies and assets.”

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