What are the reasons for the two biggest cryptomarket crashes ?

The volatile cryptocurrency market has taken a massive downturn in recent hours. The majority of digital coins have fallen sharply. Though the bleeding of prices is nothing new in this market, this is the largest sell-off after the massive depression in early February.The total market capitalization has taken a massive hit as in a mere 24 hours, going down from $372 billion to as low as $309 billion, according to coinmarketcap.com.

Bitcoin is not the sole depreciating coin, as major coins like Ethereum and Ripple followed the same trajectory.Moreover, altcoins like Cardano, Vechain, IOTA, XEM, Lisk, NEO Gas and Icon went down by more than 20% in that period.

The recent sell-off was the result of a few factors rather than a single one. The announcement by Google, the world’s largest digital advertising platform, that it will put a ban on all cryptocurrency related ads, including initial coin offerings, trading advice, and even crypto wallets, turned out to be the major one.

The collapsed cryptocurrency exchange Mt. Gox is another player responsible for the dipping market. As the news of the massive sell-off by the trustee of the doomed exchange surfaced around a week ago, it created a stir in the market. Though till now, the direct role of Nobuaki Kobayashi, the bankruptcy trustee for Mt. Gox, is not known, he could be a huge factor as the person still holds a staggering number of coins. For disclosure, Mr. Kobayashi was responsible for driving the Bitcoin price below $6,000 with his massive panic sell-off.

Regulatory uncertainty is also playing its role in creating doubt in the market. Recently, amid the $500 million Coincheck hack, the Japanese watchdog decided to tighten the noose on cryptocurrency exchanges operating in the country.

Moreover, banks are also putting more and more pressure on the market by barring their customers from purchasing cryptocurrencies using their plastic cards.

Source: Finance Magnates

Trader Bozhidar Arabadzhiev

Original post: Cryptocurrency Turmoil: Who is Responsible for the Crash?

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