Cryptocurrency June 2017 Cool Down
Over the past week (12-18th of June), the Cryptocurrency market slowed down in its sudden growth. The fall in the price is a result of several combining factors which wouldn’t make a difference independently. However, as they influence each other’s price, the cool down is amplified.
A few reasons behind Cryptocurrency June cool down:
– The temporary stoppage of the Coinbase site.
– Outflows of bitcoin funds into ICO-projects.
– Re-application of the Bitman-miner following their disagreement with SegWit.
– Another raise of the Federal Reserve rate.
– Expiration of quarterly futures for bitcoin.
– Profit-taking by some key players (upon reaching a new historical high price).
It all started when the popular wallet Coinbase went offline due to the high traffic of visitors who all wanted to get in on the highs of investing in Bitcoin. Things were made worse by the ICO Bancor project and the statement of Bitman. For three-hours, Bancor recuperated about $140M (396,720 ETH). Moreover, Bitman had previously announced his unwillingness to accept SegWit, and his decision resulted in lower cryptocurrency prices.
On March 16th, the Federal Reserve Fund announced the next increase in the reserve rate. Such decision automatically leads to a rise in the price of the US dollar against all other fiat currencies.
Consequently, this news would have had a positive effect on the price of Bitcoin, or just a small drawdown. However, against the already falling cost of Bitcoin in relation to USD, many players decided to fix the scene to lose the amount of their fiat currencies in 1 US dollar.
Bitcoin futures were also ex-traded on Chinese exchanges. This event, if traced in the history of the price on the chart, has always accompanied by a draw down in the price. With the negative mood having been developed since the start of the week, the expiration only increased the squatting, setting the price minimum for the current month.
In general, within a week the bitcoin’s share in the total capitalization rate had dropped from 42% to 38% (the difference with ethereum is just below 7%). While the market is in a panic and there are no signs of stopping the movement on the charts – it is not recommended that investors enter transactions with small amounts. If all the same transactions were made, the risks should be minimized due to increased volatility on the negative background of last week.