{"id":25226,"date":"2018-01-16T07:24:12","date_gmt":"2018-01-16T15:24:12","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=25226"},"modified":"2026-04-20T10:06:41","modified_gmt":"2026-04-20T09:06:41","slug":"three-possible-reasons-big-crypto-drop","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/three-possible-reasons-big-crypto-drop\/","title":{"rendered":"Three Possible Reasons for the “Big Crypto Drop”"},"content":{"rendered":"

The cryptocurrency markets experienced a major drop over the past 12 hours with Bitcoin<\/a> hitting a low of $9,928 and Ethereum<\/a> pulling back to $852 on GDAX. \u00a0On the hopeful front, there are no anticipated revelations to cause this dramatic of a pullback, and prices have since slightly recovered.<\/p>\n

The mainstream media loves to declare Bitcoin is dead; it's something they've done 235 times according to 99Bitcoin's Bitcoin Obituaries<\/a>.<\/p>\n

That being said, let's explore a few factors that may be attributed to the dropping prices…<\/p>\n

1) Pullbacks Always Follow Astronomical Growth<\/h2>\n
\"\"
The cryptocurrency markets hit an all time high of $832 billion<\/strong> on January 7th and are currently down 29% from the peak. It's important to keep in mind that even with the pullback, the market is still up 344% over the past 3 months<\/strong>.<\/figcaption><\/figure>\n

It is understandable for there to be a considerable market pullback after a spectacular few months of growth. This happened many times in 2017 and will continue happen many times throughout 2018.<\/p>\n

    \n
  • Bitcoin<\/a> is down 60%<\/strong> from its all-time high<\/li>\n
  • Ethereum<\/a> is down 22%<\/strong> from its all-time high<\/li>\n
  • Ripple<\/a> is down 63%<\/strong> from its all-time high<\/li>\n
  • Litecoin<\/a> is down 56%<\/strong> from its all-time high<\/li>\n<\/ul>\n

    Additionally, the market is moving much more quickly now — trading volumes are nearly 10x higher than they were 6 months ago. In June and July of 2017, trading volumes averaged $2 to $5 billion while for the past month they have been averaging in the $30 to $50 billion per day.<\/p>\n

    2) Mainstream Media Re-Spreading FUD<\/h2>\n

    For whatever reason, Bloomberg (re)reported<\/a> today that China is closing all cryptocurrency exchanges — yes, the same news we heard four months ago. There is no news here other than China is continuing its plan of cracking down on any centralized exchanges. Still, why did the media decide to report this again? Many are left baffled.<\/p>\n

    https:\/\/twitter.com\/iamjosephyoung\/status\/953195673075138561<\/p>\n

    To add even more FUD (fear, uncertainty and doubt) to the fire, six days after South Korea refuted the claim, Express.co.uk is reporting that\u00a0South Korea is shutting down all cryptocurrency exchanges<\/a>.<\/p>\n

    \n

    Hey https:\/\/t.co\/CecV3eLSos<\/a>, you're about 6 days late.<\/p>\n

    \u201cThe proposed shutdown of exchanges that the justice minister mentioned recently is one of the measures suggested by the justice ministry to curb speculation," this is from January 11. This has been refuted by gov't.<\/p>\n

    — Joseph Young (@iamjosephyoung) January 16, 2018<\/a><\/p><\/blockquote>\n