Who Crashed the Market? BitKan Chairman Leon Liu Gives His Views
Bitcoin, its variants and the entire crypto market has been on a slide for most of 2018. However, prices of most assets have slumped dramatically in the past month — Bitcoin BTC has lost over a third of its value and the market cap of all altcoins has fallen from over $100 billion USD to under $70 billion. We’ve described some opinions on why this happened here, and asked BitKan chairman Leon Liu for his input.
This is a sponsored article with information provided by BitKan
General Sentiments on the Recent Crypto Market Crash
Uncertainty due to Bitcoin Cash Hard Fork
Did the Bitcoin Cash hard fork crash the entire market? On the surface it seems doubtful, since BCH’s market cap is still much lower than that of BTC. However the fork created a lot of negative publicity for cryptocurrencies in general, causing confusion and fears of lost value. That said, it still wasn’t as big a deal as last year’s BTC hard fork, which eventually increased the value of Bitcoin and created more value in Bitcoin Cash.
US SEC’s Unfriendly Moves Towards Crypto Businesses
The U.S. Securities and Exchange Commission (SEC) has been leading the world in cryptocurrency regulations, with recent moves against cryptocurrency related businesses deemed as negative for the markets. Over the past few months, crypto investors’ hopes were crushed as the SEC made unfriendly moves, such as enforcement actions on ICO companies, crypto hedge funds, and refusal to approve Bitcoin ETFs.
Craig Wright Selling off BTC on Markets?
This notion may seem far-fetched to some, but prior to the recent Bitcoin Cash (BCH) hard fork, nChain chief scientist Dr. Craig Wright made several comments about “destroying” Bitcoin ABC and other projects that didn’t follow the Bitcoin SV (Satoshi Vision) ethos of creating a new monetary system. “BTC to $1,000 does not phase me,” he said.
If, as some believe, Wright is Satoshi Nakamoto or was close to the group that mined BTC in the early days, he could have access to a large BTC pool. If dumped suddenly on the market in large volumes, this could crash the price. Is someone selling BTC in large volumes, affecting other asset prices too? We can’t tell at this stage.
Annual Thanksgiving Trend
Other years have seen bitcoin and cryptocurrency price dips as Thanksgiving season approaches in the U.S. One theory is that investors pull their money out of crypto and back into USD to pay for holiday expenses. However, in previous years the drop was never as dramatic as 2018 as seen.
The above, like other opinions, are just speculative theories. So now we turn to China’s experts:
BitKan Chairman’s Views on the Crypto Market Crash
Apart from the BCH hard fork, do you think there may be other reasons for the recent sudden market crash?
Leon Liu: I think the BCH hard fork is only one of the reasons, but also the fuse, but there are many other factors to take into consideration beyond what is seen on the surface. This round of decline already started since the end of last year.
At present, it only occasionally rebounds along the decline, but there has never been a change in the downward trend, and the BCH hard fork is only an exit for the decline in the price of the currency.
First of all, this round of the bull market was triggered by ICOs. After nearly a year of development, the ICO projects were generally unwelcomed by governments. At the same time, the ICO concept itself had too many empty projects, and 99.9% of the projects failed. The market is currently in the process of bursting the ICO bubble.
How long do you think this bear market may last, and what factors may reverse this trend?
LL: I think this round of the bear market will last at least a year. During this period, the price of the currency should be slightly fluctuating. It is basically in a flat position, and in the state of interest where not many is too interested.
In fact, the exploration of ICOs, DApps and other applications has opened the Pandora’s Box. If there are one or two killer applications, this bear market will be terminated, and then it will gradually improve, and then it will enter a stage of benign development. That was the era of the digital economy.
At what point does BTC mining become unprofitable for miners in China?
LL: With the reference to the industry websites on the shutdown price, I think that 20,000 CNY (~$3,000 USD) will be the unprofitable levels for all mining machines. Miners and investors alike have to start planning their strategy in the event that price support is breached.
Visit the BitKan homepage and download the mobile app here:
Follow us on our official accounts to find out about our latest announcements and updates:
Images via BitKan, Pixabay
This is a sponsored article with information provided by BitKan. Bitsonline is not responsible for the products and/or services of this company or its clients. This press release contains links that lead to third-party websites. Bitsonline is not responsible for the content on those websites.