Why is Cryptocurrency price plunging now?

The price of cryptocurrencies is falling down like it is facing a doom-time. Are these the signs of crypto-apocalypse? From the most promising Bitcoin to a list of altcoins, every digital coin has been hit with this drop and there have been many speculations about it. Here, in this article, we’ll do a price analysis and give a hypothesis on this drop. So, why is cryptocurrency price plunging or facing a sharp decline? Let’s make an inference about it.

The price of Bitcoin has declined by 25% and Bitcoin cash by half of its price. Ethereum has seen its most let-down moment in their price history in the past week. The decline happened from November 19th and from that point, the fall has become even worse and some of them are trying too hard to get back. The pride of cryptocurrency has fallen under the dungeon due to investment loss.

<Price chart – various digital coins>

Did you seen the price chart above? A sudden decline in price can be seen in most of the digital coins during the same period of time. What might be the reason behind this?

The investigation report with speculated theories!

Really, a bleak week it has been, so the reason that caused such a decline might be one among the below reasons or something even worse.

  • Hard forks that happened recently pulled out the “trust” thing off the digital currencies.
  • Awareness about the legal and risk factors involved in the investment might cause this result.
  • The sudden fall of some big crypto-related organization might be a reason.
  • No regulations are followed during the fundraising period – ICO that might be a reason too.
  • Developer mistakes often cause trouble.
  • People who ended up in the scam might drive others away from such cases.
  • A good number of people are inexperienced in using cryptocurrencies.
  • A certain group of people follow just government approved fiat currencies to run away from high risks.
  • Government officials are putting great efforts to pull strings together and develop their own digital currency.

There are many such theories and the recent news are striking the same thing. The recent hard fork of Bitcoin cash to the recent Bitcoin-based scams point out such panicky situations.

Hard fork is a subsequent result of non-agreements on a recent update or version change in a currency’s protocol. The nodes that ran with the previous versions won’t run anymore and it’s kind of a big deal in the industry. The split will cause to follow two different paths with two different cryptocurrencies. New mining rules, new digital coin, new protocols. Well, to the outside world it means a lot – a failure? Entirely new scenario will be looking at the miner, investors and others – which side to continue or is it time to trade the coins and much more.

It’s not good news to an investor or anyone who is interested in these coins.

The awareness so created will always take a mass number of people away from this crypto-world.

But still, why is it affecting the entire row of cryptocurrencies. The below chart shows the price analysis from 15th November 2018 to 25th November 2018 and explains what exactly is happening in the digital currency world.

As you can see above, the decline has been worst after 19th November and dramatically affected the price chart. The red line indicates the massive change in the price. Before that date, the prices were a bit steady and high hopes were there for these assets or digital coins. Even specialists predicted the future safe with these coins but of in a sudden, the rate went southwards.

In short, the digital world isn’t stable at all. Especially, the investment is always subject to high risk! Always be keen and updated about the industry. Earlier, in this article, we provided certain hypothesis or reasons that might have caused this plunge.

Hope this isn’t permanent and the price chart will soon see its up side. Let’s see what happens in the next few days, and hope for the best.

Author Bio

Sajin Rajan, CEO, of Epixel Solutions which is a US based Software development company. He has more than 10 years of experience in the software field. He always brainstorms about emerging technologies and how they can be integrated into real-world applications. His areas of interest include blockchain technology, IoT, AI, etc.