Connect with us

#Bitcoin

5 reasons why the crypto market crashed today

Published

on

The crypto market experienced a huge dip today as more than $15 Billion in cryptocurrency were dumped in less than an hour. Here are the possible reasons.

The cryptocurrency market experienced a huge dip today as more than $15 Billion in cryptocurrency were dumped in less than an hour.

 

Here are the possible reasons why the market crashed today:

 

1. The stock exchange crash:

At first, Bitcoin was viewed as a fence against securities exchange chance since its price movements appeared to challenge gravity. Be that as it may, the slide of the Dow Jones index by 1,000 inside days has revived feelings of dread for the conventional universe of the fund. With standard monetary market lacking extravagance and a preference for unsafe investments, Bitcoin may by and by the need to sit tight for the inflow of institutional money.

 

2. Miner’s stresses:

The Bitcoin mining economy is likewise at an intersection. Rivalry and farm building created in the principal half of 2018. It is conceivable that excavators will endeavor to pitch BTC to recover costs. In the previous days, top hashing power has coincided with falling prices for existing mineworkers. One conceivable reason is that Bitmain has enacted ASIC Lift for its mining rigs, making it more troublesome for different diggers to get rewards.

The Bitcoin hashrate has been unsteady lately, falling and ascending by about 20% every so often. This shakiness has prompted unpredictable prizes and a troublesome circumstance. With excavators “following the money,” low rewards and a sliding market price may likewise prompt a weakening in supposition, potentially offer offs and farm terminations.

 

3. US Senate hearing on cryptocurrencies:

A hearing before the US Senate Banking Committee is relied upon to highlight overwhelming feedback of the crypto sector. For energetic newcomers, those entanglements and imperfections were frequently glossed over. In any case, with the bear market having a calming impact, the hearing may additionally harsh retail supposition.

The affirming specialists, Nouriel Roubini and Subside Van Valkenburgh, have prepared a survey of the crypto sector traps, uncovering tricks and flawed trading rehearses alongside demystifying blockchain technology.

Since the offering occurred on the US market, the hearing may keep on influencing the supposition of US-based traders. The US is one of the motors of development for the crypto sector, so a withdrawal of these investors could additionally haul down the market.

 

4. Bitfinex nerves:

In a previous couple of days, the connection between Bitfinex and Tether (USDT) displayed some inquisitive advancements. After Respectable Bank hinted at the inconvenience and quit adjusting Bitfinex and Tether, loss of trust in the exchange and the stablecoin prompted subsidize withdrawals. In the previous month, half of the BTC saved in the Bitfinex cool wallet streamed out. Furthermore, 100 million USDT left to flow. On Kraken, somebody attempted to offer a large number of USDT for dollars, discouraging the price to $0.98, or, in other words, the movement for a dollar-pegged coin.

This mass migration from the Bitfinex and Tether biological system demonstrates a potential loss of trust. Since Tether is so powerful and has spread to the greater part of the main exchanges, this loss of trust might be a trigger for what the crypto community sees as another Mt. Gox event.

 

5. Capitulation occasion:

Bitcoin and every single other resource had a few major squeezes as of late in spite of desires for one major “capitulation occasion” cutting down prices indeed too much lower levels. For the time being, the most recent auction may spell the finish of trusts in a December rally, seeing Bitcoin carry on by and by like in 2014 and 2015, when prices were level, with losses pushing them lower and lower. After an extremely dynamic 2017 and a delayed price slide in 2018, traders and crypto enthusiasts might choose to forsake the market or look out for the sidelines.

 

The author or the publication is any responsible or liable for any losses or profits made out of the following article. The trading of cryptocurrencies is subject to market risks. Traders and investors are always advised to conduct thorough research before investing in any digital asset or cryptocurrency.

#Bitcoin

Donald Trump policies push Mexico to Bitcoin

Published

on

Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse.

Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse that remittance payments of Mexican migrants in the United States of America will potentially be the target of new restrictions essentially ending the possibility of Mexican migrant workers to be able to cheaply send money back home to their families.

 

Mexico adopting Bitcoin:

Mexico has been experiencing a massive increase in the number of transactions on localbitcoins. Mexican migrant workers are believed to be exploited by the remittance companies which are charging around 10% fees. What is essentially being discussed here by the Trump Whitehouse is a new tax on these migrant workers. The number that they are currently floating around is a 3% tax on the remittances going from the USA to Mexico. This may not seem super crazy but considering the $33.4 billion which were sent to Mexico in 2018 alone, that extra 3% could mean $1 billion more per year for the United States government.

 

98% of the transactions that were sent during the last year, were sent via electronic means which means that there is actually a very strong remittance route that is ready for mass disruption going from the United States to Mexico and Bitcoin could be the perfect answer. However, the average size of a remittance payment from the United States to Mexico is $322 last year and the problem is that if the fees rise again exponentially on bitcoin, then bitcoin might not be the ideal cryptocurrency for these kinds of smaller remittance payments. Maybe we are going to see some other cryptocurrency being adopted in that situation. But regardless of which cryptocurrency is used, we can see that there is a clear need for disruption as government policies again seeks to impede or overly exploit the free float of money.

Continue Reading

#Bitcoin

Bitcoin Crashes Downwards: Is BTC Going to Fall Back to $4000?

Published

on

Bitcoin fell down to test the $5000 support level. If the current support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels.

Bitcoin fell down to test the $5000 support level which is the most crucial level for BTC currently. The downward correction started after bitcoin tested the $5500 resistance level yesterday at around 18:00 UTC.

 

The resistance around $5500 proved very strong and pushed the price downwards sharply. The sharp declining pattern attracted a lot of sellers which even pushed the price below $5200 support level and BTC tested the $5000 support reaching up to $5018.

BTCUSD Price Chart- Coinbase

BTCUSD Price Chart- Coinbase

Bitcoin is currently trading around $5070 (at the time of publication) showcasing a bearish pattern.

 

Bitcoin Price Drop:

The sudden price drop has led to people speculating that BTC might soon crash back to the $4000 range. Earlier, analysts were also predicting the sudden rise of bitcoin to be a conspiracy. Also, Bloomberg had also called the sudden rise a Blip. If BTC had successfully crossed over the $5500 range, the next major resistance was around $5800, however, BTC fell sharply losing more than $400 in value over the last 24 hours.

 

The bearish move does not clearly indicate a crash towards $4500 and $4000 range, however, if the current major support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels. With the price of bitcoin falling, other major altcoins are also in the red zone today with Ethereum falling more than 8% in the last 24 hours, XRP falling more than 6% and Litecoin falling around 12% in the last 24 hours.

Continue Reading

#Bitcoin

China to completely ban crypto mining: Bitcoin about to Crash Hard?

Published

on

As reported by Bloomberg, China is moving towards putting a complete ban on mining bitcoin and other crypto as it causes serious wasatage of resources.

As reported by Bloomberg, China is moving towards putting a complete ban on mining cryptocurrencies such as bitcoin. In accordance to a document posted by the National Department and Reform Commission of China, the mining of cryptocurrencies should be completely banned as it causes serious wasatage of resources.

 

China is known to be the largest hub of cryptocurrency mining with huge mining rigs been set up in the country. Earlier, China has also banned small investors to invest in security token offerings or STOs and only large investors with more than $1 million funds are allowed to invest in such projects. Now, the country is planning to take strict action against cryptocurrency miners in the country.

 

Cryptocurrency miners were earlier attracted to China due to their cheap electricity rates and subsidies in the country, however, due to the strict actions being taken by the government with the guidelines of the NDRC which has disincentivized cryptocurrency mining, a lot of miners have shut down their operations or moved to other nations.

 

Largest Mining Pools in China:

China has been a hub for some of the largest cryptocurrency mining polls. Even though the mining pools have been shifting to other countries, there has been some effect of the ban on the market for bitcoin and other cryptocurrencies as the mining is a major part of the overall working of cryptocurrencies.

 

How do you think the complete ban on cryptocurrency mining in China will effect the bitcoin price? Tell us in the comments section below.

Continue Reading

Keep up with Bitcoin & Blockchain Technology Trends

Simply enter your email address in the box below and sign up for emails from Coinnounce regarding trending cryptocurrency, bitcoin & blockchain topics and offers.

This information will never be shared with third parties.