November started out with prolonged gains and positive trends in the market indicating that the cryptocurrency market is in for some top gains.
However, after the first week of November was over, the rough negative market trends appeared, bringing prolonged dips and new lows.
Even top gaining currencies like Bitcoin Cash and Ethereum went down to touch new lows, making this dip one of the worst during the year of 2018.
Crypto Market Today: All
Price 24H (%) -5.13% -6.14% -4.93% -4.98% -7.31% -6.84% -1.66% 0.07% -7.73% -4.95% -2.28% -8.18% 0.23% -4.23% -7.99% -8.11% -5.35% -6.85% -8.04% -0.26% -7.47% -5.29% -5.12% -6.95% -1.99% -7.17% -4.34% -9.63% -4.66% -6.02%
Bitcoin declined to its lowest price in 2018 as well, and since BTC makes up for over 50% of the cryptocurrency market, it is more than evident that the crypto market is going through a rough phase.
This SHTF scenario made everyone wondering what is going on with the cryptocurrency market, leading to the question of why the cryptos are crashing.
There are several potential reasons that could possibly explain and justify the latest losses and the dipping market.
Why Are the Cryptos Dropping: Major Selloff Taking Place, Why?
One of the reasons why the crypto market is dipping in general for almost the entire month might be a major selloff.
Since everyone expected to see the cryptos rising in November as the month started out with gains, with a part of the market still dipping, there is a strong possibility that everyone started to sell their cryptos once the dip had hit the market big time.
Starting out with November 14th and still showing presence on November 23rd, one of the biggest dips of the year must have scared off holders and investors making them sell as they were already losing a great part of their investments due to the dominant bear trends in 2018.
As a consequence the overall value of the crypto market dipped as well, still dropping against the fiat.
Occasional rises are considered a product of short-term investing through buying dips only to sell off back again, which is seen in unstable market trends in the last several days.
Cryptos Are Dipping Due to Regulations?
Some are indicating that the overall dip seen through the entire year of 2018 is due to the fact that the Securities and Exchange Commission is interfering to bring regulations to the otherwise “lawless” market.
However, it is more likely the case that the cryptos are dipping partially due to individual regulations that countries like China and Saudi Arabia are imposing where many or some ICO related operations are strictly prohibited and proclaimed as illegal.
Although not applicable to all countries, one part of the market is certainly affected by these prohibitions as November isn’t the only month where frequent dips are being noted.
The Market is Dipping to Reform Itself?
Another theory is that the dips that the cryptos are going through were practically inevitable.
This is the case because there is a strong possibility that the prolonged dips such as we seen in 2018 were just waiting to happen once the cryptos have made an amazing progress 10 months ago in January.
As the market is dipping, some analysts are indicating that the crypto market is actually being reformed to leave those assets that are valuable and pose demise on those which are not.
At the same time, it is said within this theory that the market is heading down to reach the prices more appropriate to the true value of these crypto assets, although many would bear to disagree.