Cryptocurrency has become a buzz word among people but now we see that the market is down. As a result people are thinking it as valueless. Behind crypto’s bear market the main cause is that it is facing significant growing pains and lack of public opinion. But if you consider following nine factors then you can desire for a major market shift.
1: Money making from crypto is less straight forward
Bitcoin mining now a day has turned out to be progressively troublesome and increasingly aggressive, implying that the hash rate required to mine isn’t constantly worth the electricity bill. The SEC has turned its consideration toward indicting false ICOs and creating regulations. Day trading is significantly more troublesome in a bear market, particularly one as eccentric as the one we’re as of now in. Crypto simply need another round of advancement for investors to influence cash to with the exception of blockchain innovation.
2: SEC regulation have Stalled
The SEC is slowly regulating crypto. Many companies launched ICOs through representing security tokens as utility tokens and a cryptocurrency exchange were mulcted by SEC. There is a reddish impact on crypto market because till now SEC has denied nine bitcoin ETFs. Sanctioning cryptocurrency ETFs would enable foundations and people to put fund into cryptocurrency without purchasing coins or tokens.
3: Market View cryptocurrency as short-time investment
We know that people incorporate many assets in their retirement plans but from this plan crypto is devoid of. It is because people see cryptocurrency as a short time investment policy. For earning quickly when people trade and trade off in a quick process the market gets volatile.
4: Market Manipulation is Widespread
In the market language for crypto pump and dump means to sell cryptocurrency off only at it’s summit. This people can take profit and it’s a technique.It is an easy technique to follow. We know that cryptocurrency is devoid of central authority. So supply and demand determine its price. On the off chance that somebody purchases a great deal of one crypto on a littler exchange, speculators on different exchanges will notice and purchase the equivalent crypto, setting off a market-wide cost increase. Larger market cap cryptocurrencies are not invulnerable to this kind of control.
5: The Department of Justice is Investigating Tether:
The U.S. Department of Justice (DOJ) is examining Bitcoin’s transient value ascend in late 2017. As indicated by few sources, Bitcoin’s value rose to about $20,000. Analysts at the University of Texas found that each time Bitcoin’s value started to diminish, Tether had been utilized to purchase Bitcoin on different exchanges. Tether, Ltd, has additionally been blamed for not having to assets to help its 1 to 1 USDT to USD proportion that it professes to have.
6: Risk Diversification isn’t still Possible:
At the point when gone up against with conceivable control and market unpredictability, investors normally broaden their assets. In excess of 50 percent of the cryptocurrency market cap is Bitcoin alone. But in the crypto market, diversification doesn’t work the manner in which investors need it to. So when Bitcoin’s value flounders, investors will in general transform their cryptocurrencies into stablecoins or fiat, risk diversification doesn’t work in crypto yet.
7: Dearth of liquidity disarms widespread adoption:
Stability and quick exchanges mean more extensive cryptocurrency selection, implying that individuals other than cyberpunks and techies would feel good changing over their U.S. dollars into cryptocurrencies realizing that they could undoubtedly change over it back without paying steep exchange charges. Today, in any case, exchanges don’t have enough liquidity to give these capacities, in spite of the way that cryptocurrency reception is on the ascent.
8: Security Remains a Concern for prospective investors:
Crypto market is not devoid of scam and fraudulence and market also experienced some issues of hacking too. We also know that $1.1 billion in cryptocurrency was hacked in 2018. It was happened because of stealing funds from exchanges. Exchanges are small companies with inadequate security.
9: The Bitcoin Cash Hard Fork destabilized the Crypto Market:
Bitcoin cash SV and Bitcoin Cash ABC are two segregated cryptocurrencies of BCH. But what is the reason behind the separation? Developers and miners needed to actualize the progressions were contradictory with each other. Prior to the split, Bitcoin cash’s value shot up around 40 percent. After the hard fork, costs dove. There is hypothesis that the challenge among SV and ABC roused vulnerability in the whole market. Since the hard fork on Nov.15 the whole market has been in decrease.