After displaying bullish performance over the past 3 weeks, the world's most popular cryptocurrency - Bitcoin - suddenly decreased which brought it down to $ 8,513.03 per coin, as well as altcoin top 100 in coinmarketcap not forgetting to follow a similar trend.
While volatility is a daily event in the world, a sudden decline is something to be noted, especially when crashing almost $ 1,000 in just 1 hour - when bitcoin from $ 10,722 to $ 9,758 in the near future - then maintaining a bearish trend for the rest of the week This is what just happened in the last 7 days, and analysts pointed their fingers about some of the possible causes.
Bitcoin And Altcoin Dropped Drastically
For starters, a large amount of bitcoin has been sold by the Japanese crypto exchange ie Mt. Gox. In an official document issued by them, the objective is to completely liquidate the remaining assets, Where the BTC and BCC worth $ 404 million have been sold at a price lower than the current market price.
An extract from the document reads:
"As a result of consultations with the courts, they deem it necessary and sensible to sell some BTC and BCC at this point and secure a sum of money for distribution sources, thereby, selling all BTC and BCC amounts. They make an effort to sell BTC and BCC as high as possible at prices corresponding to BTC and BCC market prices at the time of sale. "
However, the movement has triggered a sharp decline in the value of Bitcoin followed by almost all of the top 100 cryptoes in coinmarketcap.
Another suitable reason for this is the recent announcement made by the Securities and Exchange Commission (SEC), in which all initial coin offers (ICOs) on their respective platforms must register with the agency, or simply cancel list. This is in line with the harsh attitude of the commission that was adopted against ICO, because of the large number of fraud cases, due to the lack of regulation on this issue.
Analysts such as security expert Andreas Antonopoulos believe many people overreact to this, though this is a well-known consequence of crowdfunding. "I have been warning people about the potential risks involved with ICO for years," he said.
Finally, news of the Japanese government that sanctioned some crypto and trading platforms due to weak security protocols may have an impact on the global crypto market, especially if we consider Asian countries to have one of the largest bitcoin exchange markets around the world.