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Many people are wondering why crypto prices are down today. There are a few possible explanations. One is that the market is simply correcting after a period of strong growth. Another is that negative news stories are causing investors to sell off their holdings. Whatever the reason, it’s important to stay up-to-date on the latest developments in the crypto world.
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Reasons for the recent crypto crash
Cryptocurrencies have been on a tear lately, with Bitcoin, Ethereum, and other major coins hitting all-time highs. However, the past few days have seen a sharp correction, with prices crashing across the board. So, what’s behind the recent crypto crash? Let’s take a look at a few possible reasons.
The Mt. Gox hack
Mt. Gox was a bitcoin exchange based in Shibuya, Tokyo, Japan. Launched in July 2010, by 2013 and into 2014 it was handling over 70% of all bitcoin (BTC) transactions worldwide, as well as nearly 80% of all trades for certain altcoins. On 28 February 2014, Mt. Gox suspended trading, closed its website and exchange service, and filed for bankruptcy protection from creditors. The company began liquidation proceedings in April 2014. In March 2018, Mt. Gox announced that it had found 200,000 BTC (worth $1 billion at the time) in a “forgotten” digital wallet from 2011—most of the missing 850,000 BTC have not been recovered.
On 14 June 2018 MtGox Inc., Mark Karpelès submitted to the court a document providing major details on the hack leading to the loss of 850k BTC. The document is partly redacted but says that “at least 740k BTC” were stolen by hackers using two different techniques: first “theft through fraudulent wire transfer requests” and second “unauthorized access to MtGox bitcoin wallets.”” Karpelès has not explained how the hackers managed to get access to the wallets nor how they made the fraudulent wire transfers.
The Chinese ban on ICOs
The recent crypto crash has been attributed to a variety of factors, but one of the most significant is the Chinese ban on ICOs.
This ban was announced in early September and immediately caused a sell-off in the crypto markets. China is one of the biggest players in the crypto space, so when they start cracking down on activities like ICOs, it’s going to have an impact.
Other factors that have been cited as contributing to the recent crash include regulatory uncertainty in South Korea and Japan, and a general slowdown in trading activity. However, the Chinese ICO ban is definitely one of the key reasons why crypto prices have taken such a big hit in recent weeks.
The SEC’s crackdown on exchanges
The SEC’s sudden crackdown on exchanges is one of the primary reasons for the recent crypto crash. In the past few months, the SEC has shut down or placed cease-and-desists orders on a number of exchanges, including EtherDelta, TokenLot, and ICOBox. The SEC has also taken action against a number of ICOs, including Airfox and Paragon Coin.
The SEC’s actions have caused a great deal of uncertainty in the crypto community, and many investors have been selling off their holdings as a result. This selling pressure has been compounded by the fact that a number of major banks have banned the purchase of cryptocurrencies with credit cards.
As a result of all this selling pressure, the prices of most major cryptocurrencies have plummeted in recent weeks. Bitcoin, Ethereum, Bitcoin Cash, and Ripple are all down by 20% or more from their 2018 highs.
It’s important to note that the SEC’s crackdown is not the only reason for the recent crypto crash. Another major factor is the February 28th announcement from Google that they will be banning all cryptocurrency-related advertising starting in June. This announcement caused a great deal of panic among investors, as it was seen as a sign that Google was not supportive of cryptocurrency.
The combination of the SEC’s crackdown and Google’s advertising ban has contributed to a perfect storm that has caused the prices of most major cryptocurrencies to crash in recent weeks.
How long will the crash last?
In the past 24 hours, the crypto markets have taken a beating. Bitcoin has lost close to 10% of its value and Ethereum is down by about 8%. So, what caused this sudden crash? And how long will it last?
Experts’ predictions
When it comes to Bitcoin, even the experts can’t seem to agree on where the price is headed next. Some say that it’s headed for big things, while others believe that the current bubble will soon burst.
Here’s a look at what some of the top minds in the cryptocurrency world are predicting for Bitcoin in 2018.
Jack Dorsey, CEO of Twitter and Square, is a big believer in Bitcoin. He has even said that he believes that Bitcoin will eventually become the single global currency.
investor Tim Draper is even more optimistic, predicting that Bitcoin will hit $250,000 by 2023. ##This is an unfinished sentence.
The current market trend
It is no secret that the crypto markets have taken a beating over the last few months. Prices have been in free fall since January, and there seems to be no end in sight. This has obviously caused a lot of anxiety among investors, and the question on everyone’s mind is “how long will the crash last?”
There are a few factors that can help us answer that question. First, let’s take a look at the current market trend. As you can see from the chart below, prices have been in steady decline since January 2018.
What you can do during the crash
Buy the dip
The best time to buy is when there’s blood in the streets,” or so the saying goes. In the world of cryptocurrency, this old adage has taken on a whole new meaning. brutal sell-offs, or “crypto crashes,” can offer savvy investors an opportunity to pick up digital assets at a major discount.
Of course, buying the dip is easier said than done. When prices are plunging and emotions are running high, it can be tough to stay calm and think clearly. But if you want to take advantage of a market crash, there are a few things you can do to increase your chances of success.
1. Do your homework
2. Stay disciplined
3. Have a plan
4. Don’t panic
5. Ride it out
HODL
HODL is a meme created in the crypto community to encourage people to hold on to their cryptocurrencies during market crashes instead of selling them.
The term HODL was actually first used in a 2013 Bitcointalk forum post by a user who was angry at himself for selling his BTC too early and missing out on further gains. He wrote:
“I AM HODLING”
Since then, the term HODL has become a popular acronym among crypto investors, especially during times of market volatility.
So, if you’re wondering “Why is crypto going down today?”, the answer may be that people are simply HODLing their coins and waiting for the market to recover.
Stay informed
The most important thing you can do during a cryptocurrency crash is stay informed. Make sure you know what’s going on with the market and why the prices are falling. Connection to the internet is key during this time so you can read up on the latest news.
This way, you can make more informed decisions about whether you should sell or buy crypto. Staying informed will also help reduce your anxiety levels, which can be very high during a crash.
