In the past couple of days, many cryptocurrencies had a negative trend. Furthermore, the bearish trend has caused some coins and tokens lose up to 15% in their price. For example, Bitcoin price on January 6th, 2018 was just around $17,000. Since, Bitcoin has lost around 35%, price rallying at just about $11,000. Moreover, XRP reached an all-time-high of $3.84 per coin shortly overtaking Ethereum from the second place on the crypto market. On Jan 4th 2018, a decline in the price began which resulted in XRP going down to slightly above $1.20 a coin. That is a 300% decline!
But what did cause the effect?
Some would say that the cause of the price crash has origins on the Korean peninsula. It is thought that the expected talks about regulation of cryptocurrency market in South Korea, was the main cause. Eventually, some of the proposed rules of regulation were indeed accepted but not all of the proposed. As a result, a tax of 24.2% was imposed to exchanges like Bithumb. Not only that the fear of regulations caused a panic and forced many crypto investors and holders to sell their coins, but it also triggered a chain of events like over 200,000 South Koreans signing a petition against the regulation.
Moreover, cryptocurrency market is heavily influenced by investor and holders from Asia. In less than 20 days, the Lunar New Year is just about to come. According to some analysist, cash out in the eve of the greatest East Asian holiday has caused prices of cryptocurrency to go down. It is estimated that just below 1.5 billion people celebrate this holiday.
To sum up, past couple of days have indeed been heavily affected by the aforementioned reasons. But despite these events, crypto market is steadily recovering. Some analysts would even say that this ‘dip’ is a nothing unusual and should be expected before a strong bullish trend!