The past week has been a downward spiral for Bitcoin and the whole cryptocurrency market.
This year has been by far the best one for cryptocurrency ever, ICO's boomed and coins were reaching countless all-time high's - but for now, it seems like that trend has come to a temporary hold.
When looking at coinmarketcap you can see that pretty much all the numbers are red today, and it has been this way for the past week.
Bitcoin has experienced a 35% drop from its all-time high $5000 to below $3300, and reached a 30-day low.
And of course, Bitcoin being the first and largest cryptocurrency, its price development affects the whole market: The collective cryptocurrency market capitalization has dropped below $120 billion for the first time since 1 month.
Reasons for the price drop
China ICO Ban
Of course, the main factor for all the chaos and price drops in the crypto world is CHINA and their anti-cryptocurrency regulations.
It all started last week when the Chinese government announced that they would ban ICO's and regard them as illegal fundraising method.
Only a few days later, news emerged that the ban was supposed to be only temporary, until new policies and regulations would be introduced.
China is not the first government that's skeptical about ICO's and their meteoric rise this year, and we can expect more and more countries to establish regulatory framework against this type of fundraising.
It's possible that the government plans to introduce a licensing structure, similar to the one in New York, that would require cryptocurrency firms to pay for licenses to keep conducting business.
China Exchange Ban - BTCC Shutdown
A few days after the ICO Ban, rumours started that the Chinese government was also planning to shut down cryptocurrency exchanges.
What started off as a rumour soon became a confirmed truth when news emerged that China's third largest exchange platform, BTCC, was forced to stop all operations until September 30.
Although there is no confirmation yet that all chinese exchanges will be forced to shut down, these news resulted in a massive panic sell-off, making the price drop even further.
OKCoin and Huobi meeting
The two largest Chinese cryptocurrency exchange platforms, Huobi and OK, have not been closed down - yet.
Supposedly, heads of both companies will be meeting with Chinese government regulators tomorrow to discuss the current situation and a possible ban.
The crypto world will be watching the outcome of this meeting closely - and in case China really does decide to ban all cryptocurrency exchange activity, we will definitely experience another massive BTC sell-of.
Litecoin creator Charlie Lee stays optimistic, and says that "this is a good thing" and "Cryptocurrency cannot be killed by any country":
Jamie Dimon's comment: "Bitcoin is a fraud"
In other news besides China, JP Morgan/Chase CEO Jamie Dimon has also created some headlines this week when publicly stating that Bitcoin is "a fraud".
He said that "It's worse than tulip bulbs. It won't end well. Someone is going to get killed", and that he'd fire anyone from JP Morgan "in a second" if they were trading bitcoin, because it's against they're rules "and they are stupid."
He also stated that these claims were only against Bitcoin and other cryptocurrencies, and that he wants to separate his statements from Blockchain Technology, which itself is very useful (this differentiation was probably a smart move when taking into consideration that his only bank has started experimenting with blockchain trials.)
Following these statements, the Bitcoin price also experienced another drop.
Time to invest!
Now for anyone thinking that these are bad times for cryptocurrency and that these are all bad news - it's quite the contrary!
I'm absolutely sure that this is not the end of a "Bitcoin bubble" by any means, this is simply a price correction before another bullish run towards the end of the year.
And most importantly: this is an investment opportunity!
Almost all numbers on coinmarketcap are RED, and as you guys know, the best trading advice ever is "Buy red, sell green".
Right now is the perfect time to invest.
Whether that's in Bitcoin, Ethereum, Litecoin, Monero, Qtum, OmiseGo or even Steem - if you were waiting for the right moment to jump in with your investment, now is the time!
Of course, we don't know how long this downward trend will last and you should only ever trade with money that you can afford to lose - but if you've been wanting to invest anyway, then right now might be your chance to buy some cheap coins.
Don't feel discouraged by the bad news. As pretty much any experienced cryptocurrency trader will tell you: now is a time to invest, not to feel desperate.
Β© Sirwinchester
I think the same. For everyone who's getting nervous now: just breathe. These are just some obstacles (if you can call them that because I think it's the normal up and down) and I agree with @sirwinchester that this is a perfect time for investing.
Of course I understand everyone who's getting nervous right now but I think this comes with the concept of cryptocurrency, so relax and do your due diligence.
Thanks for this great overview!
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This is the best post i found all the information about the current fud and the news that causes all of this.
Very good post, this is the perfect example of valuable post in steemit, you deserve big rewards! Resteemed!
Thanks for all the info, keep up the good work
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Thank you very much, I appreciate the feedback and I'm glad you enjoyed the post!
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Thanks for your post, I agree with you.
I think before and during this correction the news about bitcoin was better than ever. Nation states and wallstreet investors got involved, this can bring the market cap from billions to trillions.
This (China and JP Morgan) is just resistance from the current elite because they are getting very nervous. The thing is that they can't stop it but only delay.
A ban or regulations in one country will be an opportunity for other countries and the market will find another way around anyway (decentralized exchanges, localbitcoins or exchanges abroad).
They can delay it, but they can't stop it! The fact that they start to fight it means that they feel threatened because BTC is doing so well. Finally people have an option to leave the current financial system that is clearly a fraud en this is a HUGE thing.
Over the long haul this will bring so much value to BTC that the current price looks like nothing.
HODL
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it's a panic sale
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I agree
lets steem on!
lets make more money!
lets buy more of the crypto-currencies because we earn regularly on steemit :)
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Investing now thinking that coins are cheap is like buying a lotery ticket. Bottoms are almost imposible to pick, but buying in the down trend is risky, it could go down even further. It is better to look the trend to change from bear to bull and then wait for a buying signal (or a couple of them). You will not buy at the bottom either but it will be less of a bet than buying on the down trend. Remember "The rend is your friend".
According to my technical analysis we could see a rebound from this levels, may be up to 3600 and then it will go down again. That is the short term. On the medium term we could be completing Elliot Wave 4 which means that only Wave 5 left before a long term bear market starts.
Here is my technical analysis
https://steemit.com/bitcoin/@freedomvigilante/is-bitcoin-going-to-recover-from-this-crash-technical-analysis-with-ledger-levels-fibo-and-elliot-wave
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The fact that a major bank is attacking BTC means that cryptos are doing something right. This dip won't last long, I think
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Very true! I also think we'll be seeing an upward trend soon!
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Some good will come from power flowing out of China and into the rest of the world, as will undeniably happen if the Red Giant squeezes too tightly the throats of crypto users.
Other countries are waiting in the wings to snatch up the power and influence China is jettisoning.
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great advice :)
same situation as early january when China was to "ban bitcoin"
price fell around 20% >
then begins the biggest price run bitcoin has had yet up untill may>
small correction then return to bull-run
now i think after this retrace will we finally get to see the MEGA-bull and the world will be in awe
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Jamie Dimon: how stupid can one be to separate the technology the coin entails and the coin itself?
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thanks for updates on the blood bath lol:)
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Exactly, it's pretty much a massacre.. but it will end sooner or later!
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Good post. I was about to start a similair discussion. The current total market cap of all cryptos might seem high but blockchain is here to stay and will involve all our lives. I do see a bright future for everyone that's hold's their coins with a long term vision. Besides coinmarketcap.com there is: https://www.coincheckup.com They seem to give this complete indepth analysis of all cryptocoins. Sorted by team, product, company, advisors, previous investors, etc. Check: https://www.coincheckup.com/coins/Bitcoin#analysis For the Bitcoin Detailed analysis.
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@sirwinchester Really intriguing and insightful submit shared followed and upvoted. Want you the most effective with all of your potential endeavors.
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I hope the price falls lower so that buying opportunities are in full swing. Thanks for the advice.
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@sirwinchester Sharing to acquire this observed a lot more (and maybe open the eyes of a few)! Thank You for any effectively submit and documented write-up!.
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This post has been ranked within the top 10 most undervalued posts in the first half of Sep 15. We estimate that this post is undervalued by $35.71 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: Sep 15 - Part I. You can also read about some of our methodology, data analysis and technical details in our initial post.
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I had heard Jamie Dimon is invested in ETHEREUM, which would explain...nothing really lol
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Bitcoin never die by China.
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