Bitcoin falls below $ 3,800; The reason for this crash?

In a week, the main cryptocurrency in the world has fallen by 35.94 percent. The fall of recent days represents a loss of almost 75 percent of the value of the bitcoin in less than a year. The bitcoin, the largest cryptocurrency in the world, lives one of its worst weeks of 2018. In eight days the digital currency has had a decline of 35.94 percent whereas last week deepened its depreciation to get to quote the $ 3,500. This figure represents a fall of 3.82 percent in one hour and 17.30 percent in one day. Because of its volatile market nature, its value has been a true roller coaster. It went from costing $ 1,000 in January 2017 to crossing the $ 20,000 in December, and then falling and settle in the nearly 6,000 in which it was maintained in recent months. Many of the fears that caused the 2018 crash – such as increased regulatory scrutiny, disagreements within the digital currency community and market chaos – have intensified this week. Bitcoin (BTC) Price Today – BTC / USD
Name Price24H (%)
Bitcoin (BTC)
$9,246.62
0.13%
Ethereum (ETH)
$240.39
0.38%
Bitcoin Cash (BCH)
$228.77
-1.10%
XRP (XRP)
$0.199210
0.59%
Litecoin (LTC)
$43.65
-0.27%
Bitcoin Gold (BTG)
$9.43
0.40%

The currency that caused a digital revolution

The analyst Jorge Bejarano, consultant of the OAS in Digital Security, assures that the reasons of the collapse are due to that in the last months “the interest has fallen or from where the most important negotiations in matter of exchange of assets are made and have diminished the expectations of making negotiations based on cryptocurrencies”. There had been the talk of establishing a cryptocurrency negotiation table, and that generated an expectation of having a more serious negotiation space. However, the issue did not prosper and what it does is generate a little more distrust in relation to stability. ” The regulatory scrutiny that the digital currency has faced is the other major cause of the collapse of recent months. “The fact that these crypto actives do not have a central authority and do not have a bank that supports them ends up generating distrust in relation to the support that can be given,” he says. In addition, adds the specialist, to that is added that “it is difficult to transit with more stable physical assets using digital money to acquire them. For example, in Colombia, you could not buy an apartment with a bitcoin because the transactions are not authorized. All these elements generate instability. ” Analysts also attribute the fall in value to an investigation carried out by the Securities Commission on fraud in that sector, which has led to fines for initial offers of cryptocurrencies that did not comply with the regulation. On the other hand, a wave of widespread sales of digital currency has subtracted three-quarters of the value of the best-known cryptocurrency in the world this year. 

Ethereum and Ripple go with the flow

Other cryptocurrencies also depreciated strongly at the beginning of this week. Ethereum’s Ether fell 1.6 percent, and Ripple’s XRP dropped by a similar amount in a depreciation largely caused by a lack of confidence. On the morning of Monday, the bitcoin continued to hover around $ 3,880, staying above the lows of 2018 that touched last week.  Bejarano emphasizes that this is not the first time that there has been a collapse in the price of cryptocurrencies. In a speculative market, it’s like being on a roller coaster that goes up and down absurdly. The difference is that now there is more interest to know about the stability of investments and there is more visibility in the news about any change and especially about the negative changes.
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