Why Cryptocurrencies Go Down

Why cryptocurrencies go down

Get the Latest from CoinDesk

1. China bans ICOs and introduces licenses

Article link

China bans ICOs, but only temporarily.

Why Bitcoin Keeps Falling Down?

People are afraid of banning cryptocurrencies in China in general. I tell you - China will not ban cryptocurrencies because they will make licenses for ICOs.

Why cryptocurrencies go down

It requires special department and employment of specialists. China wouldn't pay money for that if they were willing to ban cryptos afterwards, it would be a total waste of money.

What drives crypto prices?

So don't be afraid. :)

2. BTCC exchange will stop on 30th September

Article link

BTCC logo

One of three major China exchanges - BTCC announced that it will pause their services at 30th September.

How to trade forex demo account

It is probably linked with conflicts with China government.

BTCC twitter announcement

3. Jamie Dimon - JP Morgan boss says "Bitcoin is a fraud"

Article link

Boss of the biggest american bank - Jamie Dimon said that he would fire everyone who bought Bicoin for their stupidity.

Funding circle ipo underwriters

He says that blockchain technology is good, but not Bitcoin. He mentions some government supervision stuff. Well, It's just some "important" person babbling, so the price had to go down at least little bit. In my opinion, his words will be forgotten quickly.

4. Litecoin creator - Charlie Lee mentions that OKCoin and Huobi can stop as well

Article link

Charlie Lee says that two big China exchanges - OKCoin and Huobi can join BTCC soon.

Why cryptocurrencies go down

It would lower the market cap and drive a bad mood on cryptomarket. This is the thing we should be afraid of the most because closing every exchange in China would bring fear for investors.

5.

5. Market cap goes down

Market cap goes down

Global charts

This is an indirect reason. That's why I put it at the end of article.

Why cryptocurrencies go down

Every reason from above results not only in lower price of Bitcoin and other cryptocurrencies, but also lower the market cap. It fell down from 180 trillions (2nd September) to 103 trillions (right now). That's ~42% decrease.

What caused today’s drop?

Investors are taking money and profits out of crypto-market.

Summary and my opinion

Accumulation of bad news result in huge decrease in price of cryptocurrencies. I think some "clever" people want to make everyone panic, so they can buy cryptocurrencies at lower price.

Of course I think it should stabilize and then be back to bullish market after some time. :)

Thank you for reading!

Leave an upvote and comment if you like. You can follow me to be in touch with my new posts. :) Cheers!