After all thought that the prices of digital currencies will rise after the sharp decline experienced in the past two months, investors relied on technical analysis and resistance levels, especially in the curves of the Bitcoin and the history of the price path, which comes back to a specific type of frequent behavior. Digital currencies are falling madly and wasting very large market values in the billions, which puts everyone who owns the digital currency in an unprecedented critical position does not know the specific exit and technical analysis now seems to be useless and this in view of the absence of a long history of these currencies. Pitcairn today (09-03-2018) drops from $ 10 thousand to $ 8.6 thousand, and carries with him most of the other currencies.
But !
What is the cause of the collapse of the market?
If we look at the events of the last few days, the dramatic drop in prices becomes logical, but is expected for those who follow the news accurately.
Russian President Vladimir Putin ordered the codification of digital currency transactions and the Russian parliament's ratification of the process, in response to the orders of the president, who reiterated the need for codification. The Central Bank of Russia did not share the Ministry of Finance's vision and announced that, with its joint work with the government to implement the order of the President, he is not convinced and he warns dealers of digital currencies because they are very dangerous and not suitable for stable business transactions.
The licensing and licensing campaign launched by the Japanese Financial Services Agency on the digital currency exchange companies, and its request to put their files to be reviewed before granting the license and registration. Two of the trading platforms in Japan were closed by the same FSA because they did not meet the working conditions. Japan's ruling party chairman also said he disagreed with the ministry, which allows these companies to work before they are registered as long as they do not face any problems. The big theft that took place in Japan and which hit the big company known as CoinCheck. Where $ 500 million of NEM coins were collected after the hacker downloaded Malware only the system and converted it to the currency in the Could Wallet. The company is now obliged to provide a detailed report on the incident as well as obtain an order to submit another report explaining the changes it will make to ensure that the theft is not repeated. And compensate the affected people, and this is what they will do next week by paying more than 380 million dollars for the affected.
The policy of the United States of America and its tendency towards codification of digital currencies is also the situation of investors and dealers in a state of anxiety repeated scenarios in other countries. The SEC, which is responsible for monitoring this type of activity, warned citizens against dealing with companies that trade in the digital currency because most of them are not licensed. This may have led investors to sell them for their currency.
The Philippines and Mexico also decided the same direction and joined the deal in coded currencies.
Venezuela's petro-currency, Petro, has been fiercely criticized by the country's opposition for violating many laws. The Federal Reserve said it was not comfortable with the currency and said it lacked transparency, which is very clear in the white paper.