The crypto market is experiencing the bloodbath for weeks now. Some of the top-ranked cryptocurrencies are falling sideways in a consolidated way. The prolonged market slump from the beginning of the year has caused the wave of selling of coins and other digital assets among the investors.
The downfall of the market is infectious among all the cryptocurrencies. The weakness of Bitcoin is affecting the value of Ethereum as well, the second largest cryptocurrency. The experts are predicting the mining cost of Bitcoin is one of the probable reasons for its price fall. Recently the mining expense of bitcoin has risen, which many miners cannot afford. The drop in the value of Bitcoin has created a fright-stricken atmosphere in the market and has cause fall in the price of all other altcoins.
Why is the market slipping down every day?
• Negative publicity
Public perception of the cryptocurrencies is largely affected by the crash news and negative statements by the financial institutions. They are showing their doubts about the validity of these currencies.
• Limited security
Investors need a safe place to store their Bitcoin. Unfortunately, Bitcoin lacks the security, and that is affecting the market a lot. Last year few crypto exchanges were stripped of their assets. Cyber thieves had left them penny less.
• Unclear regulations
The decentralized behavior of Bitcoin and its counterpart has attracted many users. As they can avoid the lengthy payment procedure, but at the same time has attracted many cyber criminals. Many governments are confused about adopting these currencies as it may promote money laundering and cybercrimes. This is also affecting the adoption of the coins.
There has been a dip in the market at the end of the year, and the trend is being seen for the last four years. There is no exact explanation for this phenomenon. But maybe people withdraw their crypto holdings to buy gifts for Christmas in the west or Chinese may be withdrawing their funds to celebrate their new year. People may also move their funds because of tax reasons. The reason could be all of these or none of these. But one thing people can anticipate is the situation may not improve in January 2019 also. But one thing has no doubts blockchain will make a mark in the financial industry. The market is seeing is downside now, people need to make decisions more diligently.