Bitcoin, the most well-known cryptocurrency, continues to plague both traders and neophytes. But can its evolution, which recalls the movements of a yoyo, be predicted by the analysis of certain key factors?
On March 7, while several announcements of a potential hacking of Binance's cryptocurrency stock market had been made, the price of bitcoin dropped to $ 10,000. Two days later, he continued to slide on this slope to $ 8,500, its minimum over the past month. Since the early morning of Saturday, bitcoin is gaining strength and currently exceeds $ 9,000. The reasons for the rise and fall of the course of bitcoin remain an enigma, we are reduced to make assumptions about what causes them. Here is a summary of the factors that preceded his recent fluctuations.
Rumors of piracy and crypto-descent
The CoinDesk portal reported on the evening of March 7 a bitcoin dip below the $ 10,000 mark, up to 9,400. Its slight rise preceded a new fall the next day. Users of the Binance stock exchange have expressed their suspicions about its possible piracy. The stock exchange subsequently confirmed that some of its users had indeed been the target of an attempt to file.
The portal has not been hacked, however, and all client assets are safe, according to representatives of Binance.
Risk of investigation on sales structure
On March 1, the price of bitcoin declined (to 10.300 or 10.400, according to platforms such as CoinMarketCap and Bitfinex) following the release of information on the fact that the Securities and Exchange Commission (SEC) had begun to investigate the cryptocurrency market.
Specifically, the SEC had issued the eve of requests to technology companies and experts in digital currencies to obtain information on the structure of sales and pre-sales in the context of the initial coin offering (ICO method of fundraising ), said The Wall Street Journal referring to informed sources.
Fraud and currency-novices
In February, the price of bitcoin had seen several bullish and bearish movements. Among the factors that triggered the fall were the fraud charges against BitFunder. According to the SEC, the trading platform in question sold in 2013 unregistered digital shares from a number of cryptocurrency companies. The founder of BitFunder, Jon Montroll, accused of false testimony on the activities of the stock exchange, had been arrested.
The market shocks also occurred after the Iranian Post bank said it was planning to develop its own cryptocurrency. Venezuela has "emitted" the petro motto at the same time, although there is still debate as to whether it is a true cryptocurrency or not. In the future, the Venezuelan state does not plan to stop so well and intends to set up a petro backed gold.
Strengthening controls and limitations
The increased control of cryptocurrency by banks and more and more new restrictions imposed do not allow the course of bitcoin to remain stable. On February 5 and 6, it traded at less than $ 6,000, according to data from CoinMarketCap and Bitfinex. This collapse occurred in the context of news about the tightening of cryptocurrency sales conditions around the world. Precisely, South Korea has decided to put an end to anonymous buying and selling, forcing traders to identify themselves.
The Indian authorities, for their part, wanted to introduce measures to classify cryptocurrencies as illegal.
Rising factors: relief of limitations
If the effect of negative news is clear, here are some events that explain the rise of the bitcoin price. On March 5, the currency could rebound to reach and exceed $ 11,500, while investors found a flow of contradictory information from Germany and the United States. In Germany, cryptocurrency has been recognized as a means of payment and the German administration has issued a decision not to tax purchases made with bitcoins and other cryptocurrencies. At the same time, the United States announced the opening of the ICO survey, a less positive news for cryptomarket.
Rebounds were also noted after the crypto-startup Circle announced the purchase of the US exchange platform Poloniex.
On February 20, the price of bitcoin surpassed $ 11,000, experts finding no negative factors and positive news from South Korea, which assured that it did not intend to declare the outlaw cryptomania.
In early February, bitcoin recovered after a fall following discussions in the Senate Banking Committee. Chief of the Commodity Futures Trading Commission (CFTC) J. Christopher Giancarlo and SEC Chairman Jay Clayton spoke of the need to protect cryptocurrency users, while stressing that strict control of the cryptocurrency market does not exist. is not necessarily a security condition.
Overall, any event in the field seems to be able to shake the digital market still juvenile. We must therefore be vigilant to establish and systematize what events lead to what consequences.