Cryptocurrency News: The Latest on Bitcoin, Ethereum, and the Prices

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In recent weeks, the prices of leading cryptocurrencies have declined considerably. Bitcoin is currently trading at around $7,000, which is a low not seen since October 2017. This has caused some panic among crypto investors, especially those that recently entered the market. Even established investors are weighing up their options right now. However, it’t exactly the worst time to enter the market. The prices of leading cryptocurrencies will recover sooner or later – this is just part of their cyclic nature as an emerging asset class. In this article we explore what has caused the price decline, and how you can capitalize on this volatile moment in the crypto sphere.

What’s Causing the Price Decline?
One of the reasons behind the price decline is a dramatic increase in the amount of bitcoin being traded. OTC exchanges allow large investors to buy or sell large quantities of bitcoin at once – and they’re now trading more than $100 billion worth of bitcoin every week. The growth of these exchanges is partly due to institutional investors looking to diversify their assets and hedge their risk. But the influx of new traders has caused the price of bitcoin to fall. This has prompted regulators to look into whether these OTC exchanges have a negative effect on the market. As for the prices of other cryptocurrencies, Ethereum has been the hardest hit. This is partly due to the fact that it hosts many of the ICOs that have drawn government attention. It is also suffering from the problem of ‘token over-exuberance’ – many projects that raised money through ICOs have yet to build the platforms they promised to.

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Ethereum Dark Days
Ethereum has struggled to keep up with the growing demand for its technology. ICOs have created a great deal of demand for smart contracts, but this has also led to high transaction fees. In fact, fees have been so high that some ICOs have been unable to complete their crowdsale as a result. This has caused many projects to switch from the Ethereum network to different blockchain platforms. Although Ethereum has since implemented a number of scaling solutions, the damage has been done. Meanwhile, many investors are still concerned about the long-term viability of the Ethereum network. This is particularly the case since the network is currently processing significantly less transactions per second than it was designed to handle.

Bitcoin Cash BCH: The Biggest Loser
Bitcoin Cash (BCH) was one of the biggest gainers of last year, but the recent decline in the price of bitcoin has dragged BCH down with it. The BCH/BTC trading pair accounts for approximately 10% of the overall trading volume of all cryptocurrencies. The price of BCH has fallen by more than 65% since the start of 2019, and it has been completely decoupled from its parent coin. This suggests that investors might be losing faith in BCH as a viable alternative to bitcoin.

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Ethereum: Still the King of Dapps and Smart Contracts
Ethereum remains the undisputed king of dapps and smart contracts. The Ethereum Virtual Machine, or EVM, is the leading decentralized computing platform – it’s the main reason why Ethereum has become such a popular platform for ICOs. But it’s not just ICOs – the EVM is also used for decentralized apps, or dapps. With more than 2,000 decentralized apps currently on the Ethereum network, it is the most widely applicable blockchain platform. This means that Ethereum still has huge potential for growth, even though the price of its tokens has declined.

Conclusion
Cryptocurrencies are cyclical in nature and we’ve seen this pattern repeat itself many times before. So if you’re concerned about the recent price decline, it’s important that you remain patient. In fact, the current price decline may represent a great entry point for new investors. The best time to buy into an asset class is when its price is low. This means that crypto investors should remain calm and look for opportunities to buy at lower prices. The crypto market will recover – it always does.

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