Despite lightning network developments, Tether’s recent audit and also the Bithumb exchange responding well to a malicious attack, Bitcoin continues to be troubled to achieve traction in today’s market. Let’s investigate a few reasons why that's.
1. Market Manipulation
BTC market manipulation has been a extremely contentious space that always arises when questioning Bitcoin’s value activity. whether traders prefer to settle for it or not, proof provided by a University of texas finance professor recently, along with investigations by the united states Justice Department the commodity Futures trading Commission, are commencing to prove that this ‘conspiracy theory’ truly exists in the market.
If you checked out Bitcoin’s chart this morning you'd have seen that BTC was actually heading towards a bullish breakout from an ascending triangle pattern. admittedly technical analysis isn't a definitive tool for establishing price movements, however it will appear strange that BTC was ready to climb out from the Bithumb hacked unscathed yesterday, show rising support through last night and then suddenly breakout bearish for no obvious reason.
Information given in ‘Uncovering the real cartel In Bitcoin’ outlines the shady relationship between Tether and Bitfinex using proof from the ‘Paradise Papers’, showing that USDT has been used to unnaturally inflate not just BTC markets, but other alt-coin trading pairs as well. professor John Griffiths of the aforesaid University of texas also wrote an extensive 66 page thesis recently highlighting this same suspicion. though Tether has recently passed an independent audit that confirms that Tether has adequate us dollar provides to back each issued USDT token, some belief that this could have been achieved during a number of ways; including borrowing cash to temporarily ‘window dress’ their bank accounts to unnaturally back their issued token provide at the time of the audit.
2. Market supply Outweighs Current Demand
In a twitter post earlier today, Ronnie Moas touched on this issue in the current crypto market, that after the over-inflated q4 surge last year crypto investors are commencing to lose faith that those figures won't be reached once more.
Charlie Lee also commented on this lack of faith in a CNBC fast money interview yesterday, saying that the prices of Bitcoin, Litecoin and different alt-coins are ‘disjointed’ from the new developments that each project is rolling out this year. this is often true, particularly when you look at Tron and Vechain at the moment. both projects have, or are about to, launch their mainnets and have both made important partnerships with industry leaders, yet neither have experienced any notable rise in value. Instead, the market remains fixated on selling off and are afraid to HODL or invest against the falling market.
3. Market Maturity
Another reason to clarify why Bitcoin is falling right now is market maturity. Despite Bitcoin being created back in 2009, the crypto market itself didn’t very begin to gain traction until 2014/2015 when Ethereum, Dash and different early coin projects were commencing to emerge from the wake of Bitcoin’s innovation. when crypto investing exploded late last year, the market was still in its infancy and largely speculative. Even currently several projects are barely starting to release negligible viable products (MVPs), testnets, platforms etc off the back of their ICOs.
The premature surge of money in q4 last year was never going to last for long and currently we’re experiencing a harsh correction back to where the market should really be at this point in its development.
4. mainstream Media FUD
Another crippling issue that always holds Bitcoin’s price back is bad press and the torrent of misguided information that's passed down to the general public.
As the traditional financial system comes below threat, mainstream media has played its role in misrepresenting the industry to potential new investors during this space, by downplaying its technological utility and over emphasizing bearish market movements. according to German philosopher arthur schopenhauer though, all truths travel through three stages of acceptance,
(1) Ridicule
(2) Violently Opposed
(3) Accepted As Self Evident
The crypto market here is no different. right now the mainstream doesn't recognise the potential during this industry and is choosing to ignore it's inevitable advance. Eventually however, it'll become as widely accepted as mobile phones {and the|and therefore the|and also the} internet which also had to pass through those same three stages.
5. National regulatory Intervention
Regulatory opposition was forever attending to fight against the crypto market because it's an unregulated and decentralized financial system born into a centralized, heavily regulated world. In some ways regulatory intervention has established helpful during this area, like the self-regulated Japanese exchange association that aims at up user security across exchanges, to higher the nation’s crypto system.
In the us however, government institutions such as the Securities and Exchange Commission (SEC) and the new york State Department of financial Services (NYDFS) have both smothered digital quality trading in regulations; imposing licensing and registration necessities on any crypto exchange or broker company wishing to control in the us. This has led to plenty firms moving overseas and has restricted several us citizens from participating freely within the market.
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