The uncertainty with cryptocurrency market continues. The post is enjoying a whooping hike of 20 billion dollars; cryptocurrency market has witnessed a drop in its value. This is said to be the result of more than 4 percent fall in the value of top cryptocurrencies like bitcoin. Ethereum has faced a fall of more than 4 percent.
Nothing To Be Serious:
According to the analysts, the prime reason behind the devastating drop of twenty billion dollar in cryptocurrency market is primarily due to the factors like fear, uncertainty and speculations surrounding Binance, which is said to be the biggest cryptocurrency exchange platform. But, this doesn’t mean Binance is the explicit reason behind such fall.
It is said so as Binance issued a formal letter from Japnese Financial Service Agency, as stated by Changpeng Zhao, Binance CEO. According to Zhao, their lawyers didn’t make any delay in calling JFSA after receiving the letter and are surely going to find a solution. He said safeguarding the interest of users is their utmost priority; hence there is nothing to worry about.
The temporary negative news of such often turns positive on a longer run. The CEO referred a Chinese proverb that says “new opportunities always emerge during times of change”. So, the current state of Binance with the Japnese government is one of the reasons behind the market drop.
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This is so as the market kept on falling even after FUD(fear, uncertainty, doubt) got clarified by the team Binance. The single aspect in Binance that led to such market fall is also can be expected to help in market recovery. Analysts of this concerned sector always try to validate each action in the market through some news making headlines or announce; those are in reality pretty wrong and impossible.
The fluctuation in cryptocurrency market is the result of varying supply and demand of the market. Afterall, the market is yet in its early phase. Variations in this market can also be compared with that of the banking sectors. Hence, it can also be assumed that the large investors are creating similar movements with the intention of influencing the market.
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Since past few weeks, the top cryptocurrencies, starting from bitcoin to Ethereum, were pretty much unstable in between the value of $8000 to $.9, 000. Bitcoin witnessed downfall from $9, 000 to $8, 300, but jumped to $9,100, followed by a fall to $8,500. Indeed, one single factor can’t be associated with such fluctuation.
Need Some Investors
By the latter half of 2017, cryptocurrency market was quite inspiring, being speculated to enter mainstream retail trading through thoroughly guided markets as of the Bitcoin futures in the United States. But, the demand from the investors in mainstream finance sector couldn’t happen as expected by the investors in cryptocurrency world.
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An influential boost can be expected through more number of investors showing interest in cryptocurrency market. Things have to be uncertain until such investors come. As per Binance CEO, some investors are coming from all top exchanges. This is important as the cryptocurrency price can recover prior users and investors in retail sector take part in the market.