The continuing decline of Bitcoin and other altcoins have emulated a panic-stricken atmosphere, and there are few reasons which could be why cryptocurrency is dropping:
1 Bitcoin Cash Hard Fork
A tiff between the two groups of BCH communities (Bitcoin ABC and Bitcoin SV) led into the bonfire of the ideological debate. The hard fork finally took place on November 15, 2018, resulting in two competing chains Bitcoin ABC and Bitcoin SV. As a result, the value of BCH has suffered just as much as the rest and the hash rate war caused serious uncertainty in the market and this might be the reason for cryptocurrency market crash.
2 Bakkt Delay
Bakkt, a company owned by the New York Stock Exchange, recently announced their decision to postpone the launch of their highly anticipated Bitcoin Futures trading platform from December 2018 to until late January 2019. To back this up, on November 21 they released a positive update on why they are now prioritizing Bitcoin.
3 Regulatory Pressures and Global Pressures
Both the SEC and the Commodity Futures Trading Commission (CFTC) has adopted the perspective that while Bitcoin is not considered a security, various ICO tokens are, subjected to individual scrutiny. Jay Clayton, The chairman of the U.S. Securities and Exchange Commission (SEC) reiterated the regulator’s stringent stance on Initial Coin Offering (ICO) compliance in fresh comments and underlined the necessity to conduct public token sales with the U.S. consumers in line with the SEC guidelines. Global pressures have also taken their toll on topics such as trade tensions, central banks tightening up policies, as well as Brexit contributing to declining market liquidity.
4 Fresh Investigation For The Controversial Stablecoin
The U.S. Department of Justice (DoJ) has focused its investigation crypto market manipulation on whether or not Tether (USDT) was used to artificially inflate Bitcoin (BTC) prices during last year’s momentous rally. In late October, Tether redeemed and destroyed 500 million USDT from its treasury wallet; the action provoked yet further controversy given Tether’s recent loss of its U.S. dollar.