Speculations regarding the fall of cryptocurrency: US dollars more responsible for it than the Initial Coin Offerings
The fall in cryptocurrency has startled the economic sector. And therefore, several speculations are already being made about them, up until now, it was being said that the reason the major cryptocurrencies are falling is because of the outpouring of investment and developments in the Initial Coin Offerings. Even though the crypto markets are recovering, it will be a while before they reach the stage they had reached the previous year. However, speculations will not cease to be in the market for the longest period of time.
It was also noticed that the fall for Ethereum was much worse compared to Bitcoin, and the experts in the market attributed it to changes in the status of Ethereum, however, Mati Greenspan, who is a senior analyst in EToro has stated that there can be something wrong with this analysis. According to this expert, the values of cryptocurrency have simply been responding to the value of the local currencies and thus are in turn, inversely proportional to the value of USD. This is another theory which has its roots in the influence of the US currency on the markets across the world. AS the dollar is getting stronger, a lot of people are losing the will to put in their money in the cryptocurrency sector. But because the growth in the value of dollars has stopped, a chance has been provided to the other currencies to recover their lost value to some extent. To render more evidence to this theory of cryptocurrency, it can also be noticed that the recovery in cryptocurrency is coinciding with the decrease in the value of the dollar. Even though this recovery is substantial, virtual currency has a long way to go considering the loss was of humungous $190 billion. But the stability in the value of the US dollars, the fact that there are no variations anymore is supporting development of cryptocurrrency.
There are also arguments going on in the market as to why is it that only Bitcoin has remained safe in these tumultaneous times and the verdict from the majority of the experts in the market is that the value of Bitcoin has not decreased drastically because of the fact that it is the most popular currency in the market as well as because it is considered to be the safest one in the market.
November 1, 2018
October 30, 2018