4 Reasons Why The Current Crypto Market is Bearish!
Apr 07, 2018 Posted / 801 Views
The market is now set with its parish trends. Nobody knows why. The bear is simply on lose, and the sine wave simply won't turn exponential in its look. The rise and fall of the cryptocurrencies have been so dynamic and drastic in the last two months that things are no more easy to believe in.
There are many reasons why we witness this bearish trend n the market, but we identified for you four of them.
Regulation or no regulations
Cryptocurrencies are a matter of interest for all the countries, and unfortunately their governments too. With the good and glamorous recognition that they gain, they have got for themselves the regulatory sword hanging on their heads also. In a latest, we saw in February how the US Senate is hell-bent on regulating these cryptocurrencies and make them centralized from decentralized and how to best get the massive tax out of them. All the government has agreed upon this fact that these cryptocurrencies are nothing but potential players to influence the world economy they have to be regulated as soon as possible.
It is however certain what will the government of these countries do to bring enthuse cryptocurrencies under regulation, but yes, the tie is going to be harsh on them. As much as they try to move up, these forces will bring it down, and this probably is the reason why the future for cryptocurrencies does not look very bright, but instead is in a haze and is gloomy.
Not just US, but China too is not in full support of these free-roaming currencies and wants them to be regulated asap, to bring to it the best possible benefit and control over things which they currently do not have.
ICOs regulated as securities?
While w Etalk of regulation, there are some regulators who want ICO to be regulated under securities. Yes!
The Swiss Financial Supervisory Authority or FINMA says that “FINMA regards asset tokens as securities, which means that there are securities law requirements for trading in such tokens, as well as civil law requirements under the Swiss Code of Obligations.”
The SEC chief Clayton says that “if a cryptocurrency, or a product with its value tied to one or more cryptocurrencies, is security, its promoters cannot make offers or sales unless they comply with the registration and other requirements under our federal securities laws.”
What we saw earlier this year was the SEC issued 80 subpoenas to some of the largest or rather the most prominent ICOs, as reported by Bloomberg. This had raised some eyebrows, alerted some years and obviously has all the investors worried because if by any minute chance these ICOs are found to be violating securities laws, this can put their projects at risk.
The market is tough for the average user
The market of cryptocurrencies is sometimes too typical for the average user to understand and deal with. Last December when Bitcoin was on a high, people put their money in their and then come Feb it all fell and came crashing down from $20,00 to $7000 or maybe lower than that. The pressure creates by the banks have created a sticky situation for all the cryptocurrencies putting their purchases not only makes things difficult for individual investors but exchanges as well.
Many exchanges report this issue of lack of uniformity in banking as a big issue and report that switching banks is not ideal for them too. Thus, openly declaring the need for a solution for them.
Interests of the public are more than just assets
General public dissent give damn to what the mare trends are. For them, it is always about being cheap and selling huge. But carrying this trend in cryptocurrencies is a big no as majority crypto found heir investors when they were running on their prime and high, and not when they raced their previous figures. The dynamics are all twisted and funny, but yes this is how it works.
For users are the people who buy and sell, for them money is not always in making profits from it, it is sometimes making it stable too.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
Hottest Blockchain Newsletter
For updates and exclusive offers, enter your e-mail below.