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Why is the crypto market down? There are a few potential reasons. One is that the SEC has been cracking down on ICOs, which has made investors skittish. Another is that Bitcoin’s price has been fairly stable for the past few months, so investors may be taking profits.
Whatever the reason, it’s important to keep a cool head when the market is down. Remember that this is a long-term game, and prices will go up and down over time.
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Bitcoin’s Dominance
The crypto market is down today. Bitcoin’s dominance is at an all time high, and Ethereum’s market share is at a new low. Bitcoin’s dominance is a big reason why the market is down.
Bitcoin’s share of the cryptocurrency market is at its lowest level in almost three years, as alternatives to the original digital asset continue to grow in popularity.
Bitcoin’s dominance – a measure of its share of the total value of all cryptocurrencies – has fallen from around 85% in January 2017 to just over 50% now.
The fall in Bitcoin’s dominance is a result of the explosive growth in alternative cryptocurrencies, known as altcoins, which have chipped away at Bitcoin’s market share.
There are now more than 5,000 altcoins on the market, with a total value of around $250 billion. That’s up from just over 1,000 altcoins worth $12 billion at the beginning of 2017.
Bitcoin is still by far the biggest cryptocurrency, with a market value of $140 billion. But it now has plenty of competition from altcoins like Ethereum ($30 billion), Ripple ($13 billion), Bitcoin Cash ($11 billion) and Litecoin ($4 billion).
FUD
There are a few reasons why the crypto market is down. One reason is because of FUD. FUD stands for Fear, Uncertainty, and Doubt. When there is a lot of FUD in the market, it can cause the prices of assets to drop.
What is FUD?
FUD is an acronym that stands for Fear, Uncertainty, and Doubt. It is used to describe negative sentiment in the market that can lead to a sell-off. FUD is often spread by news outlets, social media, and word of mouth. When investors are faced with FUD, they may make irrational decisions based on emotion rather than logic. This can lead to a decrease in the value of investments and can create a self-fulfilling prophecy where the FUD becomes reality.
How does FUD affect the market?
FUD stands for Fear, Uncertainty and Doubt. It is a term that is often used in the financial world to describe negative sentiment that can cause prices to drop. In the cryptocurrency market, FUD can be caused by a variety of factors including media coverage, government regulation, and hacking incidents.
When prices are falling and FUD is high, it can be difficult to make rational decisions. Some investors may sell their holdings in a panic, leading to further price declines. Others may hold onto their investments in the hope that prices will rebound.
It is important to remember that FUD is often based on emotion rather than logic. When making investment decisions, it is important to do your own research and make sure you are comfortable with the risks involved.
Regulatory Uncertainty
The cryptocurrency markets are down today. All major coins are in the red, with Bitcoin (BTC) and Ethereum (ETH) leading the pack. So, what’s going on? The main reason for the market drop is regulatory uncertainty.
SEC’s stance on ICOs
Since the birth of Bitcoin, there have been many attempts to create digital currencies with similar success. These “altcoins” use various decentralized ledger technologies, including blockchain and Ethereum. Many of them are created through an ICO, or initial coin offering.
An ICO is when a company creates a new digital currency and offers it for sale to the public. Investors can buy the currency with existing cryptocurrencies or with fiat currencies like the US dollar. The company offering the ICO raises money to fund their project, and in return, investors receive tokens that can be used on the platform or traded on cryptocurrency exchanges.
The problem with ICOs is that they are largely unregulated. The SEC has stated that some ICOs may be considered securities, which would subject them to federal securities laws. However, the SEC has not been clear about which ICOs fall under this category. This has caused a lot of uncertainty in the market and has made some investors hesitant to invest in ICOs.
The SEC’s stance on ICOs has been a major factor in the recent cryptocurrency market crash. Many investors have sold their holdings because they are worried about regulatory uncertainty. This has caused the prices of Bitcoin and other cryptocurrencies to drop sharply.
China’s crackdown on exchanges
In September 2017, China’s central bank announced a crackdown on cryptocurrency exchanges, causing the value of Bitcoin and other digital currencies to plummet. The move was seen as a way to stem the flow of money leaving the country, as well as to crack down on potential financial crimes such as money laundering.
Since then, several other countries have followed suit with their own restrictions on cryptocurrency trading. This has created a great deal of regulatory uncertainty in the market, which has in turn made investors hesitant to put their money into digital currencies.
Mt. Gox Sell-Off
Mt. Gox was once the largest Bitcoin exchange in the world, handling over 70% of all BTC transactions at its peak. However, Mt. Gox was brought down by a massive hack in 2014 that saw 850,000 BTC (worth $460 million at the time) stolen from the exchange. While 200,000 BTC have since been recovered, Mt. Gox still owes its creditors $1 billion, and those creditors are now selling off their BTC holdings to recoup their losses.
Since Mt. Gox went bankrupt, it has been slowly selling off its BTC holdings to repay its creditors. Those sales have put downward pressure on BTC prices, as there is now more supply on the market than there would otherwise be. And as more and more creditors sell their BTC, prices are likely to continue falling in the near term.
Tax Season
It’s that time of year again where people have to start thinking about their taxes. For a lot of people, this is a stressful time as they try to gather all of the necessary documents and information. For others, it’s a time to reflect on the past year and see how much they’ve grown. But for the crypto market, tax season is typically a time of decline.
US capital gains tax
If you’ve made money in the crypto market, you may be wondering how taxes work for your digital assets. Unfortunately, the IRS hasn’t provided much clarity on the issue yet. But here’s what we do know:
If you sold your crypto for more than you bought it for, you may owe capital gains tax. Short-term capital gains are taxed as regular income, while long-term capital gains are taxed at a lower rate.
Like other investments, you can also deduct losses on your crypto holdings. So if the market takes a downturn and you sell your crypto for less than you paid for it, you can deduct those losses on your taxes.
It’s important to keep track of all your crypto transactions, so that you can accurately report your capital gains and losses come tax time. The IRS has said that they will be stepping up enforcement of crypto taxes, so it’s better to be safe than sorry!
South Korea’s capital gains tax
South Korea’s capital gains tax on cryptocurrency appears to be the primary reason behind the recent market crash. The government is set to levy a 20 percent tax on any gains made from cryptocurrency trading, which has led many investors to believe that it is not worth trading anymore. This has caused a mass sell-off of cryptocurrency, which has led to the market crash.
