Bulls and bears – Crypto Market
The 2018 bitcoin bloodbath continues as the leading crypto currency has dropped to a new low for the year of $5,885.41. With prices down almost 50 percent this quarter and down almost 75 percent from the all-time high in December.
Bulls and bears have their own theories about the factors affecting the market. The market is volatile, crypto traders are emotional and the bubble bursts are all ad hoc arguments most people use, but there are actually factors that have kept Bitcoin low all year round.
The Bitcoin Code Scandal
The shadow of the now legendary Bitcoin Code hack and the entire FUD that followed it continued this year when massive sales of Bitcoin and Bitcoin Cash were uncovered by the insolvency administrator of Mt. Over a few months, about 36,000 bitcoin and 34,000 bitcoin cash were pumped into the market, potentially bringing the market to a low of $6,000 in February.
In 2018 it seems to be the year of the stock market hacks. The Japanese crypto exchange Coincheck was hacked and as much as $534 million in NEM tokens were stolen. The coincheck hack resulted in regulators and regulators intervening to protect users. Since January there have been at least four more large hacks, most recently South Korea’s largest crypto-exchange bitumb.
The Bitcoin Code hack
The overall market effects of the Bithumb Hack were comparatively insignificant, partly due to the rapid reaction of the stock market. In addition, Bitcoin Code was announced as with Coincheck, that they would pay for the stolen capital.
Capital gains tax, regulation and market manipulation
Krypto Bull Tom Lee of Fundstrat Global Associates argues that the sharp drop in the Bitcoin price earlier this year was an effect of newly coined Bitcoin millionaires selling coins to pay the $25 billion in tax debt. He suspected that Bitcoin would gain momentum after the end of April 15. In the short term, Bitcoin also recovered from $8,000 towards $10,000.
advertorial
Another not insignificant factor is the uncertainties regarding the forthcoming regulation. While traditional investors and institutions in particular are waiting for a legal framework, the Bitcoin share price seems to have been falling since the beginning of January. Until an official framework has been created, no institutional fresh capital will enter the bitcoin market.
In addition, there are currently strong accusations of market manipulation. A professor claimed that Tether was responsible for the sharp rise in BTC in December. However, Tether denies these accusations and an unofficial audit by a law firm points to the fact that the holdings had been checked as of 1 June.
