Hello Steemit!
Yesterday, most of us woke up to a scenario that would leave most investors - and possibly serial killers - in shock and awe.
Cryptocurrency wasn't bleeding, it was hemorrhaging severely.
But fear not fellow Steemians, as we at Primus Investing come with two possible explanations for this "dire" situation.
1 - Governments are going for the throat
This drop comes after a number of big announcements around cryptocurrency legislation.
A spokesperson for president Moon Jae-In, in South Korea, has stated yesterday that legislators would crack down on anonymous cryptocurrency trading.
Their aim is to crack down on market manipulation and unlawful activity, rather than a complete ban on cryptocurrencies as one minister previously suggested.
And in Europe:
France also announced measures to tackle cryptocurrency traders avoiding tax and manipulating the markets.
Bruno Le Maire, the country’s finance minister, announced on Monday that he has recruited a former central bank chief to draft new rules.
In Portugal, the market's still hazy with most banks prohibiting transactions to and from cryptocurrency exchanges such as Coinbase - something that will be corrected soon, as the Bank of Portugal has not openly prohibited cryptocurrency acquisition and selling and has received several complaints about the matter.
2 - 'Tis but a correction
Cryptocurrency analyst Joseph Young claimed that the plunge was a mere correction in price, which is another proposed theory for this situation.
As you may know, markets sort of regulate themselves, and some think that this could be but a correction of the massive growth we experienced in the last few months.
3 - The Frolicking of Whales
Mass adoption of cryptocurrency is coming and cryptos at a discount sounds great doesn't it?
We at Primus Investing believe these heavy drops in prices are related to Whale Frolicking.
Whale Frolicking can be considered as whales playing around with the cryptos, making quite some waves on this sea.
Supposing a few whales wish to entice dolphins and minnows to sell, they just unload a couple of cryptos here and there and havoc ensues .
What we are experiencing right now is the FUD Ripple Effect, in which the whales have launched FUD by selling a bit of their stacks and that has caused a lot of people to simply sell their holdings in fear of an even bigger loss - such as a crash - which translates into an even steeper drop in price.
The more people sell, the more it drops. The more it drops, the more people sell. And when the desired cryptocurrency is at half price, whales buy back in, increasing the price again and the rollercoaster goes on and on like this.
If you, like us, see the future in the technology and wish to endorse the projects or are just invested in cryptocurrency in general are experiencing FUD, fear not and keep buying / holding your investments.
This but a stage of an even bigger growth for cryptocurrency.
That's it for today, we're out of juice and we need to go back to research.
Tipping jar - help Primus Investing overcome the crash!
ETH: 0xEE9FFe7912704C43F0375C60b202a86c0A9e02C7
STEEM: STM8k1rqZWQhiZWvR7QXgRPAGYw6NyrvrQ5uJwDsYKo4NXxvuuKebw
BTC: 13PAD9NX8oVX3Sn1QyU6MHNTLF7C4gdTVR