When we hear name Crypto or Cryptocurrency, the word Bitcoin strikes to our mind. Bitcoin was and is leading the crypto market since its launch. 10 years back when bitcoin was first introduced its value was less than a dollar and till 2016 many of us have not even heard about it, But in 2017, It was a Golden time for crypto, in 2017 cryptocurrency dominated the year which made cryptocurrency an easy way for many investors to become rich. The market was up by more than 7 times their price in 2016. Cryptocurrency gained a lot of attention and fame that it was most searched and a trending topic on Google. Everyone was interested to invest some penny in cryptocurrency as the rates of bitcoin was too high and to get profit, people invested their money in alt coins, thinking that they will become rich. Unfortunately, nothing happened crypto market started sinking after January 2018 and no growth was seen after that. People believe the market will again go up in December, but these are only assumptions. Most people think decision of the Indian Government on declaring Bitcoin illegal, market has crashed but that is not the reason, market does not depend on it because India has very less investor, Countries like: USA, UK, China, Japan, South Korea, and Russia are the big investor and they can affect the market. Not going too deep in this let’s analyze why the cryptocurrency is falling.
Why is Crypto Market falling down?
1. Media Coverage: Due to Bad media coverage, public perception changes with headlines of crashes as well as negative statements from financial institutions questioning the validity of currency. I still remember when JP Morgan threatened his employees if anyone will invest in bitcoin he will fire him from the job. These type of statements affect the market.
2. Inadequate Government: Bitcoin is decentralized and has no central authority regulating it. This allows users to avoid regular payment processes charged by the government. It is easy and cheap to lots of users because it means zero inflation or the central It also attracts cyber thieves who love stealing without leaving a digital footprint. Governments have refused to adopt the currency because financial institutions and banks are concerned about its ability to commit crimes. Earlier this year, the Finance minister of India Arun Jaitley said that “cryptocurrencies would not be recognized as a legal tender by the country“.
3. Lack of Security: For Bitcoin to gain stability, merchants, and consumers need a safe spot to store funds. Sadly, security issues are affecting the trust of the public in bitcoin. Cyber thieves have stolen lots of money from crypto exchanges. Last year, two exchange sites were robbed by hackers and for security reason, they were forced to pause the transaction for some days.
There is not a lot of more to discuss why a crypto market is falling, because we can’t predict what can happen next, Experts had failed in predicting whether the market will go up or down. Many of the Experts and also the trend cryptocurrency follows show the time is very close when a new record will be recorded. Probably, This New Year will give us a new record price of bitcoin. As per Tom Lee, “Bitcoin Price will reach to $15,000 this year-end“. So, at the End I just want to say cryptocurrency is unpredictable you don’t know when Crypto market will fall and when it will catch the skyrocket.