ANOTHER PLUNGE & THE GOOD NEWS
Looking for reasons and the end of the tunnel
Everyone is asking, again, why are crypto-currencies plunging?
There has been some serious drop in crypto prices all around the market. We have looked around for possible reasonable explanations.
One of the possible negative catalysts is the hype that surrounded the well-publicized "Blockchain Week" in New York City. Now that Blockchain Week is over, it can have an indirect psychological effects resulting in lower investor interest.
Not surprisingly, the biggest catalyst driving down crypto-currency prices is regulatory fears, but that’s not new. However, now, there are actual recent events that can explain the price plunge, at least, partly. On Monday, U.S. and Canadian regulators announced "Operation Crypto-Sweep," the target of which is crypto-currency investment schemes, particularly ICOs. Although, it is not targeting major crypto-currencies and crypto exchanges, it seems to have generated some fear in the market.
The rest, experts say, is simply market volatility.
So, nothing really headlines-worthy out there, yet even news that might have some indirect effect on the crypto market can influence the attitude of investors to such great extent. The good news is that similar positive news has the same potential, so all the market needs is some encouraging news.
Pratik Makadiya reports on btcmanager.com that “U.K.-based digital currency ATM operator, AlphaVend, has established the city’s first Bitcoin ATM in Liverpool. Located at Herman Vapes, an E-juice center, the accomplishment is looked forward to providing convenience to digital currency lovers and beginners in the field.” Herman Vapes is located in the heart of the city, so it has a high footfall every day of the week. Herman Vapes’ spokesperson said: “We are really excited to be the location chosen by Alphavend for the first ever Bitcoin ATM in Liverpool, and we are sure it will attract plenty of interest.”
On the other hemisphere, Banco Masventas, an Argentinian Bank “announced via its Facebook page that it is introducing a new program that will allow customers to make cross-border payments using Bitcoin. The institution has partnered with the Latin America–focused exchange startup Bitex — founded in 2014 — to potentially compete with SWIFT, a global, bank-owned messaging network”, Nick Marinoff, Staff Writer at bitcoinmagazine reported today.
And it’s also important to report that Tom Lee, Co-founder and Fundstrat strategist was asked whether he had changed his mind after the last few days of market misery. Lee is famous for his optimism regarding Bitcoin’s future value. He underlined in his answer that he was maintaining his prediction that Bitcoin would reach $25,000. Let’s conclude this report by quoting what Lee said in CNBC’s report on May 23: “As miserable as it feels holding Bitcoin at $8,000, the move from $8,000 to $25,000 will happen in a handful of days."