This is just my personal opinion. I can be wrong.
We had crazy growth in the last 30 days. Many altcoins had 10x returns. That is not healthy. Market correction was expected.
Coinmakretcap.com changed how they calculate the average price excluding the Korean Exchanges.
That was huge, huge mistake!
Logically speaking it was correct thing to do. But psychologically they condemn the market. Korea is world leading crypto country with over 11 billion daily trade volume and that is 1/5 of total world volume.
Korea crypto enthusiasm drove the market forward!
I think this is a key factor, we need Korea to push the crypto love forward.
Coinmakretcap.com need to put back Korea’s exchanges into the average price calculation.
Speculation, speculation, speculation.. pointing fingers and panic.
First was the Korea ban, then China ban after EU banks ban. Panic and not verified news.
In the digital virtual market (when you only have 0 and 1 on a hard drive) every rumour becomes the truth.
Witch Hunt! We all need someone to blame for the market crash.
Sentiment is a key in the cryptocurrency world.
It is hard for new people to sign up in various crypto exchanges. Basically no fresh money is coming to the market.
Chinese people exchanging crypto for fiat currency to buy gifts for the Chinese festivities.
Yes there are some who will do that, but I’m not sure about the scale of this event. We had Christmas but the crypto was rising.
To summarise everything: In my opinion the market crash was because the fast and unhealthy growth
with panic and speculative news.
What will happen in the future with the cryptocurrency?
I don’t know. But I’m optimistic.
I will explain why:
If one country with 51,5 million people (South Korea) are responsible for 11 Billion dollars of daily volume traffic what will happen to the rest of the world if it reaches the Korea enthusiasm for Crypto?
If Binance onboards 300000 people in 1 hour, is this not a good sign?
The potential(this is rumour) U.S. president candidate Mark Cuban is crypto enthusiast.
This T-Shirt says it all:
https://www.amazon.com/dp/B0793JZRR5
** This is not financial advice, just my personal opinion **