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The reasons for the collapse of the cryptocurrency exchange on November 14

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Last week, the price of cryptocurrency experienced a serious drop. At peak times, Bitcoin lost up to 15%, dropping to $ 5,402.10. However, it very quickly won back some of the losses, but could not fully recover yet. This situation has pleased many speculators and saddened investors. Experts believe that the event has several objective reasons.

Why cryptocurrency fell

Most experts agree that the collapse was caused by the global situation on the trading floors. This affected not only digital, but also traditional assets. The price of gold fell to $ 1200.10 per troy ounce, silver set annual minimums. Oil returned to March values. Apple shares fell in price by more than 5%.

The Federal Reserve System's rate hitting policy allows the dollar to grow, but it has a negative effect on other trading tools. It is necessary to recognize that cryptocurrency suffered the most significant losses, the reason for which lies in a combination of factors:

  • hardfork Bitcoin Cash;
  • transfer of mining abroad profitability;
  • Increased demand for steablocks.

Each of them could cause a sharp movement of quotations. Thus, the upcoming division of Bitcoin Cash led to a multiple increase in the turnover of the coin, which naturally diverted liquidity from classical Bitcoin. Of course, Bitcoin Cash also suffered from a collapse, captured by a general wave of sales.

Some experts believe that the price of Bitcoin at $ 5,800 is the marginal profitability of its mining. When it falls below this price, it becomes unprofitable to mine coins. Therefore, a significant part of farm owners chose to transfer activity to other areas. In particular, they could become stablecoins. As the situation has shown, some of them could even grow during the period of general sales.

It is likely that stablecoins will become the trend of the upcoming season. The demand for them is growing, and even states have begun to be involved in this process. If earlier Bitcoin had to compete only with new coins from private business, now whole countries, with all their resources, interfere with the situation. Switzerland has already begun testing e-krona.

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