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Why does the bitcoin graph fall?

10/15/2018
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  • bitcoin _analyse
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For some investors, the situation on the cryptocurrency graph causes a negative reaction. However, it could be calculated in advance, if one understands the essence of events. The fact that the bitcoin price is falling today, was the result of its rapid growth in 2017.

What cryptocurrency graphs talk about

Of course, if you bought an asset at highs, then the situation really seems serious. But let's look at it from the other side. At the end of 2016, the BTC/USD pair was trading at around $1,000. Then in 10 months, it rose to $19,000, after that it dropped to $6000. Therefrom we can conclude that the fall of bitcoin has become a completely natural process.

And now it is better to call this movement a correction, not a decline. Analysts call the following reasons:

  • market saturation;
  • the appearance of a large number of forks;
  • active work on corporate coins;
  • difficulty of regulation.

In addition, the bitcoin value falling was greatly influenced by the actions of hacker communities. At some point, they removed the ability to undermine confidence in the absolute security of the blockchain. It turned out that without serious support, the projects were vulnerable to hacking. Therefore, many corporations engaged in the development of their projects.

New stage in the development of blockchain

Huge interest in cryptocurrency was shown by large companies and corporations. This was also one of the reasons why bitcoin is falling today. When MasterCard starts developing its blockchain payment system, it creates competition for public coins.

And such work is now being conducted in all directions. The possibilities of safe storage and transmission of information have become popular with many leaders in various industries. IBM, Microsoft and other giants are developing their own technologies. The same MasterCard became the leader in the number of registered patents in this area. No matter how popular bitcoin is, it cannot compete with a consortium of 22,000 technology optimization companies.

Overbought cryptocurrency market

Last year private investors showed an increased interest in coins. The fact that bitcoin price is falling today is largely due to excessive demand yesterday. A huge number of buyers have acquired it at the highs and suffered significant losses.

Now it is difficult to find arguments to convince them of the prospects of investments. The general mood of the market is added thereto. When charts go down, public opinion forces them to do it even faster. In investing there is such a thing as a trend. It usually leads to a massive shopping passion, followed by the same global asset frustration.

Forks that blurred the market

The next factor in the fall of quotes was a large number of forks, that is, ramifications on the digital coin tree. So, bitcoin now has a few dozen forks, which significantly distracts the attention of investors.

Differences between directions may relate to insignificant moments from the point of view of an ordinary person. For example, this is the block size in the blockchain or the allowable number of operations per minute. Now bitcoin accounts for only about 40% of the capitalization of all coins, which adversely affects the graphs.

Experts agree that the forecast of bitcoin price falling prediction may turn out to be true for some time. The market needs to get used to this asset and believe in it. Then the downtrend will stop and change to growth. But it is unlikely to be as vigorous as he was before.

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