Crypto market price slump – Not only the Bitcoin price has dropped

Prices continue to tumble. With a Bitcoin price of less than 6,500 euros, a market capitalisation of just over 100 billion euros and a 24-hour trading volume of just under 6 million euros, it is not only the Bitcoin that is in the red.

Not only the Bitcoin left springs. The same can be seen with the other leading crypto currencies. Thus the Ether is at present with 661 euro, Ripple with 64 cent. The Bitcoin lies thereby with the same conditions of at the end of of November of the yearly. A small view into the crypto-ecosystem draws an altogether negative picture, which explains the uncertainty of many investors.

Negative signals of the Bitcoin evolution

Since yesterday, for example, customers of the US financial Bitcoin evolution companies JPMorgan Chase, Citigroup Inc. and Bank of America can no longer buy crypto currencies with their credit cards: Due to the high volatility of crypto currencies, the leading financial companies in the USA decided to only allow their customers to buy by debit card, where the amount is debited directly.

There were also voices from Goldman Sachs that aggravated the negative sentiment towards Bitcoin & Co. As we reported, Goldman Sachs‘ annual report also read little positive about crypto currencies. With the current downward trend in connection with the news mentioned above, it is not surprising that many want to hedge their profits and are waiting for the right moment for a new start.

But it was not only outside the crypto ecosystem that inconveniences occurred. In this context, one should mention above all the decline in confidence in the stock markets. In addition to the recurring security gaps, there have been problems with tether and bitfinex in particular. It is unclear whether tether, which is allegedly linked to the US dollar, is actually covered by sufficient fiat money.

These factors ultimately mean that frightened investors are more likely to withdraw their money, while little new capital flows into the ecosystem. A lack of confidence in the stock markets and negative reports from the established financial sector discourage new investors and tempt many to leave for the time being and wait for the right moment to enter the market. In addition, the stock markets were at times so overloaded that they did not allow new registrations, but most of them have now settled down again.

The fall in the Bitcoin evolution share price does not alter its value

The current signals are of course unattractive, especially for short-term investors – but the much quoted opportunity is once again in the current dip. Also the current course of prices is not to be equated with the value of the crypto currencies. If one remembers the original idea of the Bitcoin evolution as a decentralized payment system, the current crash will not change anything about its fundamental value. As a decentralized alternative to the traditional financial system, the Bitcoin and the underlying blockchain technology will continue to assert themselves. In this way, occasional setbacks – especially due to external factors – cannot be avoided.

What is also becoming increasingly apparent is that the stock markets must develop better, above all more securely, in order to grant more trust. An important basis for a more stable cryptographic market is ultimately only a more secure ecosystem that neither discourages new investors nor frightens away existing users.