Crypto News: The Crypto ecosystem is going through quite a low phase as of now, the price devaluations are constant and hitting newer bottom lines; Bitcoin, the foremost cryptocurrency also crashes down below the $5,000 mark. The reason for the bear, while the adoption rate is on the rise is puzzling and experts are theorizing the plausible causes for the current collapse.
The First one is touted to be the SEC’s announcement on Friday, the regulator accused two “Initial Coin Offerings” (ICOs) of breaking the law by selling unlicensed securities. The law-breakers are asked to pay fines and restitution. While it seems as small hick-up in the whole ecosystem, the SEC has been gearing up for days to stop any discrepancy, in order to prevent the investors. These developments have spooked some crypto investors and the effect could be clearly seen on the digital tokens prices already.
Well, you might as well be under the rock if you haven’t observed the Bitcoin Cash community splitting into two. The clash between two forks namely Bitcoin ABC and Bitcoin SV has split the network, upon there update on November 15. The mess that is created over the renewed centralization of BCH.
It indeed hurts BCH prices, but on a larger scale, it has pushed everyone’s attention to the volatility of an established network, raising the concerns about the viability of cryptocurrencies even more.
Chip-makers Nvidia and Advanced Micro Devices report about steep sales declines for cryptocurrency equipment have spooked the ecosystem further. The decline implies the loss of interest in crypto and possibly the cause of the chill on crypto asset prices. Interestingly, this can be studied in reverse as well, that the chill on crypto asset prices is leading the loss of interest and the subsequent decline in the sales. Simply put, a vicious circle that is negatively affecting the digital assets and will continue to affect if nothing breaks this cycle.
With every dip in the prices, a new set of reasons evolve; a good news in some ways as the market can recover from the intermediary shocks. Though, on the flip side, such severe reaction to every change small or big puts the investors at unease as the market becomes quite unpredictable.
Read more: 5 Reasons Why Bitcoin Price Dropped Below $6000
Source: Fortune.com
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