• Latest
Market Crash Likely Result of Several Factors, Recovery Could Come Quickly

Market Crash Likely Result of Several Factors, Recovery Could Come Quickly

November 28, 2018
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Trading

Market Crash Likely Result of Several Factors, Recovery Could Come Quickly

coinnewsdaily by coinnewsdaily
November 28, 2018
in Trading
0
Market Crash Likely Result of Several Factors, Recovery Could Come Quickly
190
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

price analysis 4/20: btc, eth, bnb, xrp, sol, ada, luna, avax, doge, dot

Price analysis 4/20: BTC, ETH, BNB, XRP, SOL, ADA, LUNA, AVAX, DOGE, DOT

April 21, 2022
naga review unveiling the platformac280c299s copytrading value proposition 1[1]

3 Facts Points Out BTC To Surge Extremely In A Week: How To Seize The Chance to Profit?

April 20, 2022

November has seen the largest declines in market values this year, with major drops beginning mid-month. Bitcoin’s fall to $4,000 puts it down more than forty percent in two weeks. Altcoins have fared worse, with many losing more than half of their value during the same period. In traditional commodity markets such substantial declines are usually caused by a notable event, yet in the crypto space no single factor can be identified as the cause of the present price crash. To get a better understanding of the current situation a number of issues should be examined.

There is no doubt that the well-publicized BitcoinCash hard-fork on November 15th was a triggering event for the sharp market decline. Shortly after the fork, many traders rushed to buy into the new platforms, which resulted in a sell-off of many coins, including Bitcoin. The two new versions of Bitcoin Cash have remained extremely volatile, causing continued concern for the overall stability of cryptocurrency markets.

Although significant, the split of BitcoinCash alone should not have been disruptive enough to cause the sustained drops in prices over the past two weeks. However, on November 14th, a set of Chicago Board Options Exchange (CBOE) Bitcoin futures contracts expired. The expiration date of these contracts has been linked to drops in Bitcoin values since their inception last December. In fact, some analysts consider the introduction of futures trading as the primary cause of Bitcoin’s decline throughout this year.

A third notable influence on the price drops is the rampant trading and speculation that has come to define crypto adoption. More specifically, this year has seen a sharp increase in margin trading, offered on exchanges such as Bitmex and Huobi. This type of speculation contributes significantly to price volatility, as small price moves can trigger large scale buying or selling. The price decline on the 15th activated stop losses for these traders, which began a cascade of more selling, thus further driving down prices, triggering even more of them. Additionally, quite a few large Bitcoin sales occurred on Bitfinex which further depressed prices.

There has also been no shortage of discouraging news, such as the continued delay by institutional investors, rumors of market manipulation, and government hostility. In this environment it is not surprising that many have come to believe that digital currencies will not live up to their bold potential. Other would-be adopters are also likely to be waiting until the market stabilizes, and many cryptocurrency owners have sold to prevent further loss.

Altogether, an important takeaway from the present state of the market is that a substantial amount of fiat sits on exchanges, with traders and investors prepared to buy when confidence is restored. The large-scale drop of the past few weeks is thus not reflective of any fundamental flaw in blockchain technology. On the contrary, blockchain development and implementation is stronger than ever.

Many analysts continue to predict an upcoming bull market across the cryptocurrency space, and given the general nature of the sector, a price recovery could happen very quickly. Long term, the value of cryptocurrencies will not be determined by speculation or manipulation. Rather, blockchains will be underpinned by their utility, and by the ability of their distributed ledger architecture to increase productivity, security, and efficiency. There is thus no doubt that for those who trust in the future of blockchain, the current decline in fiat value is not a cause for serious concern.

Tags: blockchain technologyChicago Board Options ExchangeCrypto TradingEconomySecurities & Commodity ExchangesTrading
Share76Tweet48
Previous Post

Google Searches for ‘Bitcoin’ Just Hit Their Highest Level Since April

Next Post

Amazon Has Launched a New Service for Building Blockchains

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

price analysis 4/20: btc, eth, bnb, xrp, sol, ada, luna, avax, doge, dot
Alt Coin

Price analysis 4/20: BTC, ETH, BNB, XRP, SOL, ADA, LUNA, AVAX, DOGE, DOT

April 21, 2022
naga review unveiling the platformac280c299s copytrading value proposition 1[1]
Bitcoin

3 Facts Points Out BTC To Surge Extremely In A Week: How To Seize The Chance to Profit?

April 20, 2022
here's how ether options traders could prepare for the proof of stake migration
Ethereum

Here’s how Ether options traders could prepare for the proof-of-stake migration

April 20, 2022
Pro traders know it’s time to range trade when this classic pattern shows up
Ethereum

Pro traders know it’s time to range trade when this classic pattern shows up

April 17, 2022
ethereum derivatives data shows pro traders are bearish, but for how long?
Ethereum

Ethereum derivatives data shows pro traders are bearish, but for how long?

April 17, 2022
price analysis 4/11: btc, eth, bnb, sol, xrp, ada, luna, avax, dot, doge
Bitcoin

Price analysis 4/11: BTC, ETH, BNB, SOL, XRP, ADA, LUNA, AVAX, DOT, DOGE

April 11, 2022
Load More
Next Post
Amazon Has Launched a New Service for Building Blockchains

Amazon Has Launched a New Service for Building Blockchains

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin

Subscribe to Get More!

Loading
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$29,654.001.69%
  • ethereumEthereum(ETH)$1,978.100.13%
  • tetherTether(USDT)$1.00-0.08%
  • binancecoinBNB(BNB)$328.023.15%
  • rippleXRP(XRP)$0.4093540.86%
  • cardanoCardano(ADA)$0.521.58%
  • SolanaSolana(SOL)$49.631.03%
  • polkadotPolkadot(DOT)$10.192.60%
  • dogecoinDogecoin(DOGE)$0.0841160.83%
  • tronTRON(TRX)$0.0805995.54%
  • Shiba InuShiba Inu(SHIB)$0.0000120.44%
  • daiDai(DAI)$1.00-0.17%
  • litecoinLitecoin(LTC)$70.341.41%
  • CronosCronos(CRO)$0.1898012.41%
  • matic-networkPolygon(MATIC)$0.662.89%
  • leo-tokenLEO Token(LEO)$4.87-0.53%
  • FTX TokenFTX Token(FTT)$29.790.25%
  • bitcoin-cashBitcoin Cash(BCH)$196.032.10%
  • moneroMonero(XMR)$193.174.07%
  • chainlinkChainlink(LINK)$7.242.81%
  • OKBOKB(OKB)$12.761.55%
  • stellarStellar(XLM)$0.1329293.00%
  • ethereum-classicEthereum Classic(ETC)$24.2910.32%
  • cosmosCosmos Hub(ATOM)$11.09-0.86%
  • algorandAlgorand(ALGO)$0.4176500.39%
  • vechainVeChain(VET)$0.0316971.13%
  • ElrondElrond(EGLD)$90.66-0.26%
  • tezosTezos(XTZ)$2.1112.05%
  • Internet ComputerInternet Computer(ICP)$7.871.13%
  • filecoinFilecoin(FIL)$8.412.98%
  • AaveAave(AAVE)$106.486.65%
  • eosEOS(EOS)$1.352.95%
  • theta-tokenTheta Network(THETA)$1.262.89%
  • zcashZcash(ZEC)$100.23-0.05%
  • makerMaker(MKR)$1,288.74-1.03%
  • huobi-tokenHuobi Token(HT)$7.031.90%
  • bitcoin-cash-svBitcoin SV(BSV)$53.234.29%
  • paxos-standardPax Dollar(USDP)$1.00-0.18%
  • iotaIOTA(MIOTA)$0.3386922.17%
  • PancakeSwapPancakeSwap(CAKE)$4.871.86%
  • neoNEO(NEO)$11.22-1.31%
  • zilliqaZilliqa(ZIL)$0.052486-0.59%
  • KusamaKusama(KSM)$81.74-1.52%
  • dashDash(DASH)$62.434.34%
  • basic-attention-tokenBasic Attention Token(BAT)$0.3947721.75%
  • havvenSynthetix Network Token(SNX)$2.61-0.26%
  • wavesWaves(WAVES)$5.70-0.45%
  • CompoundCompound(COMP)$70.251.47%
  • nemNEM(XEM)$0.053233-4.08%
  • bitcoin-goldBitcoin Gold(BTG)$25.41-2.84%
  • qtumQtum(QTUM)$4.110.14%
  • omisegoOMG Network(OMG)$2.591.80%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • ethlendAave [OLD](LEND)$4.103.48%
  • SushiSushi(SUSHI)$1.678.46%
  • yearn-financeyearn.finance(YFI)$9,083.191.63%
  • golemGolem(GLM)$0.2621160.29%
  • ontologyOntology(ONT)$0.2864781.91%
  • umaUMA(UMA)$3.46-0.07%
  • digibyteDigiByte(DGB)$0.0123010.67%
  • UniswapUniswap(UNI)$2.4438.80%
Posting....