What could cause the crash of Cryptocurrency?
The cryptocurrency market has already suffered one major crash this year, and it is well known that it is a particularly volatile market. But, what a lot of people don’t know is what can cause major crashes. Here are just a few things that can affect the prices of cryptocurrencies.
This would immediately cause the prices to collapse. Government regulations: If governments illegalize cryptocurrencies and start arresting the people behind them, then there will be nobody left to maintain and improve them. This will crash the market cap of the affected cryptocurrencies, however this is extremely unlikely and here is why.
The heads of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (SEC) testified on cryptocurrencies during a U.S. Senate hearing, with both regulators showing a clear understanding of the blockchain and Bitcoin itself.
So, with that in mind, the SEC has filed a number of lawsuits against allegedly fraudulent initial coin offerings (ICOs), while, the CFTC has moved to scrutinize the activities of cryptocurrency exchange Bitfinex and Tether, the closely-linked company behind the controversial USDT token.
It is clear that the movement from the regulators is bringing a negative impact towards ICOs and a very positive impact towards real coins like Bitcoin and the blockchain technology, with Facebook becoming the first to block ICO adverts and Google to begin banning ICO and cryptocurrency adverts from June.
This is all positive news and moves to clean up the cryptocurrency eco system, if you know how to identify them.
Feel free to contact us to make an informed decision, or leave your questions and comments below.