The world of Cryptocurrency has faced serious price crashes across all its major boards. All these started on the morning of 16th January 2018 and had gone on for the better part of the week, of course with certain rebounds here and there.
It is the same fall in price that caused Bitcoin to come down to about 15% in its first rebound, before making another rebound and even falling further. Some Altcoins, for instance, have shed up to about 90% of their initial value when it comes to price.
The Impact Of The Asian Market
It can be remembered well that this response by Cryptocurrencies is not something new, particularly after a crackdown from the government authorities. Since all these began, one narrative that has been going around is that the behavior of the market came following regulatory pressures that were recently issued by South Korea and China. In the beginning of 2017, the People’s Bank of China made an announcement that exhibited its plans to begin regulating the operations of Cryptocurrency within China. This led to a situation of that kind. The fall in price, back then was, however, short-lived since Bitcoin was able to recover within a very short period of time.
A similar pattern came into action a number of times in the entire 2017, especially when a number of nations from the Asian continent made announcements in regards to the ecosystem of the cryptocurrency.
The effect that these Asian countries have been having on the Cryptocurrency market can be directly related to the increased level of participation that this market gets from that continent. But this can also be borne out of the fact that the Asian nations have been the first countries that adopted the use of these digital currencies. That explains why negative news in Asia is capable of causing panic to sell the Cryptocurrencies in most parts of the world.
The recent drop of price that has been witnessed in the industry is a clear indication of a trend that has been going on for a very long time. It is also a reminder that Cryptocurrency is very volatile and it is normal for long-term traders to grab the opportunity of coming up with discount buy-orders.
At the moment, a huge amount of international trading volume is occurring in the East, and so China will continue to affect the industry in one way or another.
As it has been the custom, the leading currencies will be able to recover fastest and live to trade the next day. But market swings like the ones currently experienced must also be treated with lots of care. This is because they can possibly contribute to the end of a life cycle for a coin that is of low value. A recent illustration of this is Bitconnect.
Events happening continuously have indicated how important the Asian community is to the Blockchain and Cryptocurrency industry. It remains unknown how long this will continue, but the power of this continent in the crypto world can never be underestimated.