Hello steemit!
In this post I'll try to cover some of the resons for why I think the cryptocurrency market is having a massive sell off today.
There's a lot to talk about but I'll try to keep this post kinda short but cover a lot of different subjects and you can use the links and photos I provided to make up your own mind if there is something you find useful. All links will be found at the end of this post.
I'm not an expert or a financial adviser, I'm just here to share my thoughts with you people out there and I would love to hear your thoughts about it.
Okay so lets get into it!
Lunar New Year in China
Let's begin with talking about the Chinese New year. For those of you who don't know, this is pretty much their equivalente to what Christmas is for many of us. I mean It's bigger than huge! It's the longest holiday in the Chinese calendar with the biggest magration in the world. Sells are estimated to generate around a total of $100 billion USD during this time.
As we all already know that China is having the biggest trading volume in the cryptospace what happens in China impacts the market almost instantly. I've been reading on reddit and other forumus about how a similar crash to the one we saw just before Christmas could happen during the Chinese New Year and how it's been happening before.
Have a look at this photo I found on reddit:
The Year of the Dog, begins today on February 16, 2018.
A guys called eclipsegum said this on reddit:
"Remember that the crypto market is antithetical to the stock market. Stocks boom when business is booming during the holidays. Crypto investors are retail investors, not Wall Street investors. Retail investors sell during holidays, thus the crypto market falls".
I thought it's something to keep in mind.
Could this sell of come from that many Chinese people are selling of their investments now and have been doing so for quite some time?
Recent news about crackdowns on cryptocurrencies in China
As more and more news are coming about regulations of exchanges in South Korea, recent news about China's recent crackdown has been kinda under the radar. China has been on a crypto-ban move for quite some time now, begging already this summer and banning all ICO's in September last years. Recently we've been hearing news about a crackdown on mining and now it seems like China is targeting online platforms and mobile apps that offer exchange-like services.
They also doing what the can to ban any kind of usage of foreign cryptocurrency exchanges.
So there seems like there is no slowing down i Chinas work to completely shut down all kind of crypto business in the country.
I don't know if and how much this latest news impacted the market today but it's worth mentioning in this post.
CBOE futures end tomorrow
The very first bitcoin futures at CBOE are ending tomorrow and people on internet are talking about how Wall Street is pushing down the price just as the futures are running out. I don't know much about this subject but it's definitely something I'll look more into. We have the frist CME group futures ending next week too.
One interesting thing I to think about here is that the CBOE futures expire tomorrow.
Is that just coincidence?
Not if you ask some users on the interwebz. I don't have a opinion here but I'm sure Wall Street is more than happy to follow todays price actions.
Media FUD and newbies making the crash even worse?
Always when the market see red people panic. But recently media has been bombarding with negativ news about China and South Korea FUD.
I think that together with all the newcommers in the cryptospace this crash we see today is way worse than it should be and will be corrected soon.
CNBC today
So whats your opinion on this? I would love to hear your thoughts and talk with you!
By the way, this is my first post about cryptocurrencies and I'm new here on steemit overall.
All kinds of feedback are welcome.
Have a nice day and I hope you enjoyed the post.
Sources
Reddit post about Lunar New Year crash:
China Crackdown:
https://www.bloomberg.com/news/articles/2018-01-15/china-is-said-to-escalate-crackdown-on-cryptocurrency-trading
https://www.coindesk.com/pboc-official-calls-for-wider-ban-on-chinese-crypto-trading-report/
All you need to know about futures:
https://www.zerohedge.com/news/2017-12-17/all-you-need-know-about-todays-cme-bitcoin-futures-contract-launch
Worlds largest migration and Chinese New Year:
https://www.forbes.com/sites/ywang/2017/01/26/worlds-largest-human-migration-begins-chinese-new-year-2017/#2fec836f999a
http://www.mirror.co.uk/news/world-news/celebrate-chinese-new-year-2017-9704440
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