This eternal question rises every time the cryptocurrency market goes to its nosedive.
There were several reasons for this, as always.
The first and main reason for the decline is a natural correction. After a sharp jump in April, “bears” (those who buy coins for a short time for immediate profit and trade with them non-stop) were simply obliged to wake up and show their teeth. Corrections, happening from time, allows the “bulls” (those who purchase cryptocurrencies aiming for long-term growth) to restore strength for a new breakthrough, and there is nothing wrong with it.
In this case, the rollback could be less painful, but unforeseen circumstances intervened. Because the second reason for the sharp change in the mood of investors and traders was the accusation of the South Korean crypto platform UPbit in fraud. Valiant law enforcement officers in one day committed two exploits: they searched the office of the exchange and provoked the collapse of the market for almost $ 56 billion.
Of course, they did it out of great concern of doing good for citizens. True, a few days later it turned out that there was no fraud, and law enforcement officers were just slightly mistaken because of their incompetence. But it was not getting any easier for investors from this mistake.
“Bulls” recovered from the shock surprisingly quickly and began to gain altitude, but then Bitcoin and it’s comrades received a heavy beating from the beloved Microsoft. It’s search engine Bing joined Google, Facebook, Twitter in their ban on advertising cryptocurrency. What strengthened the negative mood of everyone – the upcoming conference in the cryptocurrency industry – Consensus 2018. Traditionally it provided loud events, inspirational statements and a general holiday, that’s what was awaited with the following rapid growth of coin rates. Instead, it was a complete disappointment. Traders and investors finally fell into discouragement and finished May in a minor mood.
