{"id":51889,"date":"2018-05-12T15:52:24","date_gmt":"2018-05-12T22:52:24","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=51889"},"modified":"2019-11-07T02:56:07","modified_gmt":"2019-11-07T02:56:07","slug":"why-is-bitcoin-dropping-and-will-next-weeks-consensus-event-in-new-york-city-turn-it-around","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/why-is-bitcoin-dropping-and-will-next-weeks-consensus-event-in-new-york-city-turn-it-around\/","title":{"rendered":"Why Is Bitcoin Dropping and Will Next Week’s Consensus Event In New York City Turn It Around?"},"content":{"rendered":"

After hitting a low of $6,850 earlier this year, Bitcoin<\/a> experienced a resurgence in the past month as prices climbed back to $9,950. According to Tom Lee<\/a>, Head of Research at Fundstrat, the intrinsic weakness of currencies like Bitcoin lies in the fact that investors have to keep selling<\/a> their virtual holdings in order to \u201craise cash to pay for their 2017 gains.”<\/p>\n

While it's impossible to predict why exactly this past week's crypto drop occurred, some have attributed it to the comments made by business magnates Warren Buffett and Charlie Munger at the annual Berkshire Hathaway shareholder meeting, where they criticized<\/a> Bitcoin and other virtual assets \u2014 likening them to \u201crat poison.\u201d<\/p>\n

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Before this week, Bitcoin was on a strong recovery path, hitting a 2018 high of $9950 on May 5th.<\/figcaption><\/figure>\n

After falling to just over $9,300 last weekend, the crypto powerhouse remained relatively stable for a few days until it dropped to $8,320 yesterday.<\/p>\n

In the midst of this latest price drop, Lee believes<\/a> that the upcoming Consensus 2018 Conference \u2014 scheduled to take place in New York City between May 14 – 16 \u2014 will help the crypto sector rebound and once again display strong bullish signs.<\/p>\n

The Korean Impact<\/h2>\n
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Related Story:\u00a0Top South Korean Crypto Exchange Raided by Local Police<\/a><\/figcaption><\/figure>\n

Another reason for the Bitcoin dip may have been due to the\u00a0recent raid of\u00a0Upbit<\/a>, South Korea\u2019s largest cryptocurrency exchange by volume.<\/p>\n

According to a respected Korean news outlet,\u00a0Chosun<\/a>, ten financial investigators visited Upbit\u2019s Gangnam-gu office after they were notified of certain fraudulent activities that the trading platform had been involved with.<\/p>\n

The prosecution claims that Upbit is \u201cdeceiving their customers\u201d and is falsely portraying currency holdings that they do not actually own, primarily by faking their balance sheets.<\/p>\n

Data from CoinMarketCap<\/a> shows that Upbit is the world's fourth-largest cryptocurrency exchange by trade volume yet it accounts for less than 2%<\/a> of Bitcoin\u2019s total trading volume over the past 30 days.<\/p>\n

Tokyo Whales Ready to Dump BTC<\/h2>\n
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Related Story:\u00a0Tokyo Whale Prepares 8,000 BTC Dump as Crypto Bloodbath Continues<\/a><\/figcaption><\/figure>\n

Similarly, it is being reported that a Mt. Gox trustee is positioning to liquidate 8,200 Bitcoins<\/a> to pay off previous investors from the 2014 hack that bankrupted the world's largest Bitcoin exchange at the time.<\/p>\n

While seeing such a large amount of BTC moving has alarmed crypto investors, besides having a physiological effect, this move should not have any major impact on the value of Bitcoin in the long-term.<\/p>\n

Consensus 2018 Starts Next Week<\/h2>\n

Consensus 2018, a three-day conference dealing with all matters related to crypto and blockchain, starts on Monday of next week. The event is hosted by CoinDesk<\/a> and boasts of over 250+ speakers along with nearly 7,000 attendees from a host of different industry startups and financial institutions.<\/p>\n

Starting in 2015, the conference has morphed into a go-to destination for crypto enthusiasts from across the globe. This is reflected by its growing annual attendance, which has increased tremendously since its inception in 2015:<\/p>\n

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#Consensus2018<\/a> >7k registered vs est. 2,750 last yr (our est.), 3x increase… hence, crypto market expected to see large moves next week and in 2017, alts rose sharply https:\/\/t.co\/mj7WArjy1P<\/a><\/p>\n

— Thomas Lee (@fundstrat) May 9, 2018<\/a><\/p><\/blockquote>\n