Cryptocurrency collapse: what is it due?

The end of the year 2018 will be remembered by traders as the worst year for the quotation of cryptocurrencies.

After all, you know, invest in Bitcoin and on other Altcoin carries many risks.

Just think of the fact that, from the 2014 to the end of the year 2018, the Bitcoin has undergone the worst collapse of always with a performance of -56%.

If the 2017 year was the year of the Bitcoin boom, the 2018 year was characterized by a series of continuous "collapses" that led to a depreciation of the gold price of cryptocurrencies.

And so it also happened for Ethereum (ETH) and for EOS.

What is the collapse and the "bearish" trend of the listing of digital currencies due to?

Let's find out what they can be reasons at the base of the "collapses" that affected the cryptocurrencies in the last months of the 2018.

Cryptocurrency quotation collapse: what are the possible reasons?

SOS collapses in cryptocurrency quotations: although the digital currency market is destined to grow over the next few decades, the last 12 months have been not too positive for traders and cryptocurrency investors, particularly for digital asset gold, the Bitcoin.

People used to constantly follow the news and quotes in real time, and those who hold and treasure their Bitcoins on the E-Wallet, he knows it's not a good time to invest in digital assets.

Certainly there have been better moments! But, what is this depreciation in the value of cryptocurrencies that is putting a panic among traders and investors?

What are the possible reasons behind this collapse? Here are the 3 possible causes and factors that are causing the "free fall" of digital currencies.

#1. Speculation

For many authoritative expert traders and financial analysts, at the base of the collapse in the prices of cryptocurrencies there would be, in effect, no reason.

In fact, it would be the speculation to justify the collapses that have occurred after the growing frenzy, which has caused prices to rise and has heightened the growing desire of traders to invest capital in digital cryptocurrencies.

"The price of Bitcoin has collapsed this year for the same reason that last year soared: speculation"He stressed Luca Fantacci, Professor of economic and financial history at Bocconi.

"At a time when optimism began to falter and we began to fear a fall in prices, all of them rushed to sell and, in doing so, they really brought down prices.”, Emphasized the Professor.

#2. Manipulation Risk

Another possible reason for the "free fall" of cryptocurrency listing could be determined by risk of manipulation.

After all, we cannot fail to notice the fact that more than 80% of Bitcoins are held by less than 1% of traders, therefore, in this market there is little elasticity.

It is easy to understand that there is a high probability that there is a risk of manipulation: large investors can dictate the rules and influence the prices of cryptomains by buying or selling digital assets.

#3. Money laundering "dirty"

At the base of Bitcoin's success is the presence of blockchain, the registry technology distributed among all the nodes of the network.

In practice there is not a single server, but the information is shared among all users, thus avoiding the duplication of digital money.

Cryptocurrencies are synonymous with anonymity need great opacity; in fact, they are a new and powerful tool for criminals, terrorists, financiers and evaders.

More and more often Bitcoins allow the circulation and storage of illicit funds such as masking the supply of funds for Isis.

Unfortunately, this lack of transparency is partly due to the lack of regulation.

2019 forecasts 

We already talked about forecasts for 2019 but in this world so fast, where technical analysis leaves the time it finds, we can only wait and see how technology will be perceived by institutions, the only ones that can really make a difference for mass adoption.