BEHIND THE FALL
How the press covers the recent decline
Two days ago (on Thursday, 11th October) the major headlines were covering the sudden 10% overall fall in crypto values. We decided to wait 48 hours so that we can see whether the market will get up as fast as it landed on the ground, and we also wanted to wait until the instant panic fades out and actual valid information pops up in the media.
After the Thursday morning fall, the general downward trend continued on Friday. It seems that there is no clear catalyst behind the overall selling but there has been a significant decline on the financial markets around the world, as well.
This is how the global press evaluates the situation:
HOW MUCH IS LOST?
CNBC reports what followed the Thursday plunge: “On Friday over $6 billion was wiped off global crypto-currency markets, led by XRP and Ethereum as prices of digital coins continued to fall. /…/ That came after a sharp sell-off across the board on Thursday, which erased billions of dollars of value in a matter of hours.”
IS THE CURRENT SITUATION THE RESULT OF MANIPULATION?
CCN.com says that the general assumption that manipulation carried out by whales is behind the sudden fall is false: “New data from Chainalysis has revealed that Bitcoin whales /…/ might be doing more good than harm to the market. /…/ Trading whales actually purchased Bitcoin during the price dip that occurred around December 2017 and in most of 2018 /…/. This means that trading whales were mostly buying during and were thus, in fact, a stabilizing factor in the market and not the opposite, as is sometimes assumed.”
GROWING ACCEPTANCE AT THE VERY SAME TIME
Cointelegraph: “Even as the markets decline, this week has seen reports that multiple Ivy League and other prestigious U.S. universities – including Harvard, Stanford, and MIT – have all invested in crypto funds, in what sources consider to be “a sign of the asset class’ growing acceptance among institutional investors.” Just last week, it was reported that fellow Ivy League titan Yale had also invested in a major new crypto-focused fund.”
OPTIMISM, NO MATTER WHAT
Zycrypto.com predicts a potentially bullish end of October: “All it takes is a little push – something like the rumors of a BTC ETF approval by SEC. /…/ In fact, that kind of blessing seems to be already in the works. SEC will be inviting public input on ETF approvals on October 26th. That move alone suggests that SEC would actually consider approving a BTC ETF in line with positive public opinion. That could ultimately result in a serious Bitcoin bull ran kicking off within the month.”
The market capitalization fell under $200 billion on Friday morning, for the fourth time this year, but a few hours later it was above the 200bn line again. We are looking forward to good news.