In general, market capitalization fell by $100 billion over the week, with many cryptocurrencies losing more than 13%. This isn't the first time cryptocurrencies have experienced such significant losses, and it certainly won't be the last.
The obvious reason for this decline in the cryptocurrency market is the tightening network of regulatory mechanisms around the world.
- In Japan, two cryptocurrency exchanges - Mr.Exchange and Tokyo GateWay - have withdrawn applications submitted to the Financial Services Agency (FSA). Denmark's largest financial institution, Danske Bank, has warned investors about the threat of investing in cryptocurrency due to a lack of central bank support.
-The U.S. Securities and Exchange Commission is trying to curb digital trading, saying investors should conduct such trades on registered and regulated exchanges.
-Google Trends, a barometer of how popular a particular topic is, shows global searches for Bitcoin are at their lowest level since October 2017.
-Snapchat and Twitter announced that they will no longer run cryptocurrency-related ads in the coming weeks and months, just as Facebook and Google announced they would ban crypto ads earlier.
-The fall in crypto market trading volumes appears to be the latest turn in the long-running battle against the public image of Bitcoin and other digital currencies. The fact that Bitcoin is challenging the existing financial order is sufficient reason to assume that recent events have been provoked to step up regulation of crypto businesses in Europe and Asia.
The result is panic, provoked by a series of negative news, which forces hamsters to dump crypto assets.
Bulls believe that there are no economic reasons for the collapse of the crypto market and it is better to hold Bitcoin to count on upward correction. However, for now, a bearish trend prevails in the market, caused by aggressive sales of traders.
The absence of positive news that can support the market affects the fall of the trend. However, Bitcoin has dealt with most of the major risks in its nine years of existence. Each additional period of survival implies a longer lifespan for technologies like blockchain.
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