According to Bitcoin quotes on the citicoins website, bitcoin prices have been falling for a while, and have fluctuate more than 500 US dollars within a few days. In view of this, let's take a look at the reasons that caused it to keep falling.
1. ICO suspected of illegal fundraising
According to the current regulatory regulations, ICO did not obtain approval from the relevant departments to absorb funds, and there was an open way to publicize the public. After the central bank studied a large number of ICO projects, it discovered that more than 90% of ICO projects were suspected of illegal fund-raising and supervisors’ intentional Fraud, the ICO1% that really raise funds for project investment is not enough, so ICO financing is a huge risk. For example, LST, when it started out, packed itself well. People thought it was a good project and they frantically raised funds. As a result, the fund-raising money was run away and caused great losses.
2. The rapid development of numerous Altcoins has threatened the central bank’s currency issuance
The cryptocurrency is not a true currency; it does not have the legal and mandatory nature of the legal currency. It has neither the country's credit endorsement nor the corresponding physical assets as a backing. However, under the background of excess capital, cryptocurrencies have risen all the way in recent years, resulting in a near-crazy income, many domestic investments. The people rushed into it first. There are many types of cryptocurrencies, such as HC, SPK, etc., that have appeared in public view in recent years. Many kinds of cryptocurrencies have attracted many people's attention. This has essentially become a financial market outside the national system. The acts of issuing, circulating, trading, and investing in cryptocurrencies are all outside the legal currency. This is something the government cannot allow.
3. There is a huge bubble
Bitcoin’s gains are staggering, and the role currently playing in the national market is gradually becoming important. In the future, Bitcoin may become a mainstream asset like gold, dollars, bonds, and stocks. The importance is self-evident. But even so, the 90% increase in one month is not the normal trend of any normal asset prices. Altcoins such as the EDRC are fluctuating in price movements, far less than 90%. Australian economist John Quiggin called bitcoin "the purest example of an economic bubble". When the bubble bursts, it will not only affect investors who hold Bitcoin, but also all financial markets associated with it. .
4. Market news and media orientation
There is no doubt that the media's orientation and unfavorable market news will greatly affect the trend of the Bitcoin market. More bad news, fake news, new news, old news. When they pile up together on market information that is already sufficiently fragile, the damage caused will be even more terrible.
Many people are looking forward to hearing good news, hoping to correct past mistakes, set aside the haze of the cryptocurrency market, and then make market-related responses. And what will this news be? When will it be heard? No one knows yet.