The Cause behind the Fall

[shamzblueworld]

I am not concerned about the current fall of all crypto currencies including bitcoin because I believe they will definitely bounce back.
But I am interested in finding what is the cause behind this? What caused people to panic and what caused all the cryptos to dip so low at once?

[endlasuresh]

All of these Cryptos rely on Bitcoin, so if the price of Bitcoin increases, then other coins too increases. I am not getting people are making coins for trade or a service? if any person who developed for a service then their coin would boom in the market.

[Sumo]

I am not concerned about the current fall of all crypto currencies including bitcoin because I believe they will definitely bounce back.
But I am interested in finding what is the cause behind this? What caused people to panic and what caused all the cryptos to dip so low at once?

The reason for this fall has been repeated many times. The last time it was in the autumn was due to the regulation and cancellation of the ICO in China. Now the same China together with Korea have created another news background because of which the crypto-currency market is rolling down. Everything will grow.

[Kim Ji Won]

That is mainly because of South Korean banning trading of cryptocurrencies entirely or if not, they would impose regulations on the market. Since South Korea became hugely invested in bitcoin with trading becoming mainstream and helping propel the price of bitcoin, so for them banning trading would give a huge toll on the bitcoin's price because they are a huge factor on its surge.

[usahaali06]

One of the reasons is that the coin holders are trying to sell their coins after they meet the sales targets, at the time of purchase they are cheap and then sell them when the price is high, if it continues like that it is very clear it will lower the price, but if for example bitcoin is used more whether supplying goods purchase transactions, bill payments and the like, may have a positive impact on bitcoin prices.

[roshanface123]

I think one of the reason is it's high price level , because of this price level investors blackout from investing in bitcoin. And the issue related to China also make an impact on bitcoin price fall. But I strongly believe that bitcoin can overcome from this situation and raise again more powerfull than the beginning.

[spngebob]

That is mainly because of South Korean banning trading of cryptocurrencies entirely or if not, they would impose regulations on the market. Since South Korea became hugely invested in bitcoin with trading becoming mainstream and helping propel the price of bitcoin, so for them banning trading would give a huge toll on the bitcoin's price because they are a huge factor on its surge.

I thought they are going to regulate exchanges not to ban bitcoin. I am sure I've read this somewhere and I am sure that they said it was just FUD someone is spreading. I don't know what to believe any more, probably won't read news about crypto regulations any more.

[penig]

Selling feeds a sell off.  Two peices of bad news, some sell, other see it, sell off.  Peoples stop losses start getting breached and other wave of selling.  Then the Europe wakes up does the same... then America wakes up does the same... 50% sell off and counting. 

For all the "argh i lost my life savings" remember a lot of people would have been sitting on a lot of profit (still are!) and decided to take what they've got.

[mellorbo]

One of the reasons is that the coin holders are trying to sell their coins after they meet the sales targets, at the time of purchase they are cheap and then sell them when the price is high, if it continues like that it is very clear it will lower the price, but if for example bitcoin is used more whether supplying goods purchase transactions, bill payments and the like, may have a positive impact on bitcoin prices.

I don't think it is as simple as you think. The reason why almost all crypto is crashing because bitcoin is crashing. BTC is like the backbone of all cryptos, and they are depending to btc.

[chamaraprabhath]

there are lot of factors behind this fall. According to my knowledge the most effected factor is new investors who entered to the cryptocurrency in last months of 2017. A lot of investors among them have not good knolodge about the behavior of the market. they just wanted to test the market and gain a good profit. Because of their demand bitcoin price was increased rapidly. Other altocoin mainly depend on bitcoin. As bitcoin increase other coin also was increased. In these days new investors taking their investment back. then The prices of every coin in the market are falling continuously.  

[Notcalculator]

Selling feeds a sell off.  Two peices of bad news, some sell, other see it, sell off.  Peoples stop losses start getting breached and other wave of selling.  Then the Europe wakes up does the same... then America wakes up does the same... 50% sell off and counting. 

For all the "argh i lost my life savings" remember a lot of people would have been sitting on a lot of profit (still are!) and decided to take what they've got.

I agree! Bad news after bad news, triggers a race to sell. They sell, thinking it's the only opportunity they have left to get they money back (or a fraction). Which floods the market with supply, effectively crashing its price.
But in the end of the day, who knows. Maybe someone's pulling the strings intentionally, maybe not.

[BitNinja2017]

Definitely linked to Chinese new year sell off at start of Feb and End of Jan

[The Demon Slick]

I always expected a bumpy ride, Wall St. is in it now, and they swing it the way they want to swing it. I looked into a futures investment vehicle that trades based on the price of btc, it has literally nothing else to do with btc, they hold none, they trade none, they literally just made it up and sold a bunch of them, then got it listed on the stock exchange through a major firm. News from Korea was already denied by Korea. They might try to tax some, even if it were true, so what. Scare some people, big deal, price will be back in no time. I think that people who rely on btc for an income might be a little put out for a week or so, but I think if everybody just holds on it's going to be just fine. Some weak kneed investors will get washed out, some people who went out on a limb a little might panic and get out, then in a few days things will get back to normal.
Noob calls bottom at 9800, buy on the dip, 13500 again in around 5 days, maybe higher and sooner.
Just my nooby opinion.

[severaldetails]

I think that many people put a lot of money into worthless altcoins.
They started to realise that this might have been a not very wise decision and try to save what is left of their money.
So a lot of money is leaving the crypto currency industry at the moment.
And that brings every currency down.
When you look closer, you see that bitcoin is not hit as hard as most of the other major currencies.
To me that shows that trust in bitcoin is still there.

[Nefarious]

I think it's a whole mix of things rather than one specific event: China / South Korea FUD, people selling for the holidays, weak hands from new investors who had only experienced exponential growth up to this point, whales & institutional investors manipulating the price to pick up some discounted crypto etc etc.

[Pantoflascrypt017]

Some very unexperienced newbies in the market have played a big part in this recent correction i believe. There is no understanding of how the market works by these new people and they only know of maybe two other coins from bitcoin. They buy and trade recklessly and sell at losses so further damaging the prices instead of holding for a period to sell breakeven or in the green.

[emberbekas]

There are some bad news from South Korea in regards with bitcoin and other crypto currencies. I think that's the main cause of the very significant slump in crypto prices these days. But I am sure, this panic will soon end and the price movement will return to normal again.

[mahilchii]

There are so many cause for the fall politically but there is only two real cause for the crypto to fall. First is the correction in crypto world. Second is to attract investors, due to this price fall people will invest more.

[gentlemand]

It's a bubble. It doesn't need news to burst.

A bubble is irrational buying pushing the price far, far higher than it can justify as more people get more excited. As soon as the excitement passes, people wonder just what the hell they poured thousands of whatever into, realise there was no reason to, and then everyone runs to the exits.

[Adeyemi]

Part of the reasons why there is a fall is bad press as a result of regulations from Asian markets. This is normal in the market as it will definitely rise after this phase. The market will arise again.