If in the second half of last year, Bitcoin bathed in glory and was undoubtedly the favorite, then from the middle of December, troubles began to pursue him one by one, which, apparently, are not going to retreat. What is the reason for the fall in the price of cryptocurrency, and why the recovery can take a long time, argues social network analyst for eToro investors in Russia and the CIS, Mikhail Mashchenko.
In such a young and highly emotional market, the psychological aspect plays a key role. We can track the relationship between the growth of quotations and search queries on the topic of investments in digital assets and notice: the main strengthening of the course occurred during active publications of news related to Bitcoin, and when the upward movement accelerated in the fall, prices began to set new records widely reported in the press came on the market a large number of new people who want a quick profit. Now the situation is the opposite: the number of transactions in the network has fallen to a two-year low, and the amount of transfers between wallets has decreased to a three-year one. Trading volumes on cryptobirths began to fall with a slight delay, which may indicate not only a decline in demand for assets among newcomers, but also an attenuation of enthusiasm among the “old men” who continued to perform operations on the sites. Or, ordinary investors have trivially run out of money: in the cryptocurrency market, traders rarely close losing positions and usually continue to hold them “to the end”, and any reduction in value is used as an opportunity to buy more coins. Needless to say, without purchases, the price increase of any financial instrument is simply impossible.
Every day the stream of criticism from regulators collapses on the industry, and trading floors exist in constant fear of new restrictions. Not to say that criticism from government organizations occurs out of the blue. A fresh example is the hacking of a large Binance exchange, during which hackers calculated using VIA / BTC exchange rate to access customer accounts. The fraudsters did not succeed, but neither the enthusiasm of investors who began to sell cryptocurrency, nor the regulators, who immediately made a statement about the necessary verification of cryptobirge, did not let that cool down. Similar sentiments are observed in Japan, where several sites are under the close supervision of officials. Problems with security are still perhaps the biggest problem in the development of the industry, and without its solution one should not rely on the mainstreaming of the industry.
And last but not least, the sale of assets of the notorious Mt.Gox exchange, which goes through a bankruptcy procedure. Moreover, the sale of cryptocurrency from the balance sheets is extremely "clumsy": large volumes at a time and through trading platforms, and, for example, not through special auctions. From December to February, 35 841 Bitcoins ($ 362 million) and 34 008 Bitcoin Cash ($ 45 million) were sold, and 166 000 Bitcoins and 168 000 Bitcoins Cash remained on the accounts. It is possible that these operations do not have such an obvious effect, as they believe in the community, but the pressure on investors' nerves is tremendous.
Total To restore the quotes, there should be major changes in the minds of investors, and this is impossible without serious and positive news. At the moment it is difficult to imagine what exactly the desire to buy could give to potential and current speculators, so that those who are thinking about acquiring digital assets still have enough time to think.