The encryption currency debacle, bitcoin fell below $5000 mark

Last week, BCH hard to bifurcate, mainly the decrease in the market value of billions of dollars of money encryption.

Tuesday (November 20th) encryption currency to accelerate the decline, bitcoin fell below the $5000 mark for the first time since October 2017, the market speculation that the tightening of regulatory review will promote the first token issued (ICO) issued empty positions. At the same time bitcoin cash recent continuous fermentation hard bifurcation incident also contributed to the money market capitalization evaporated encryption.

The United States Securities and Exchange Commission announced that the two companies for the first time out of the civil fines encryption currency

Bitcoin nearly a week decline of nearly 27%, reaching more than 13 month low at $4736.19. Other encryption currency decline, Ethernet square and Wright currency nearly a week cumulative decline reached 30%. In the digital currency, only reboxetine currency rose.

On Friday (November 16th), the U.S. Securities and Exchange Commission (SEC) announced that the two companies for the first time out of the civil cryptocurrencies ticket, because they are not registered as securities ICO. Airfox Paragon and Coin Inc. will be forced to come up with $25 million to compensate investors, and must be registered as securities digital tokens.

“Down with law enforcement, law enforcement is almost certainly in,” ProChain Capital, chief technology officer Justin Litchfield said.

The SEC ruling triggered by the speculation may be overstated. Research firm Elementus believes that many ICO have empty wallet, and may be their encryption currency into legal tender.

Bitcoin cash hard bifurcation resulting in bitcoin volatility regression

Last week, bitcoin cash (Bitcoin Cash) hard to bifurcate, mainly the decrease in the market value of billions of dollars of money encryption. A hard bifurcation is because of two software development groups failed to reach a consensus on upgrading the original bitcoin branch, resulting in computing arms race”.

The news, by a billionaire Karl Venel camp and Craig Steven Wright et al leadership proposed a bitcoin SV hard fork controversial proposal.

Craig Wright threatened to bitcoin cash for 51% of the attack, and get enough strength in bitcoin mining is invalid cash on the network block, in violation of the agreements. But due to the bitcoin cash in the hash rate and the number of blocks is still ahead of mining bitcoin SV, SV cannot bitcoin cash to attack 51%. This caused the conflict between the cash and bitcoin bitcoin SV

Affected by this, November 15th encryption market valuation in 24 hours declined from $210 billion to $183 billion, more than $27 billion a day.

In bitcoin prices fell 18% in cash (BCH) under the impetus of every major currency encryption on the global market are beginning to appear in the fierce sell-off.

While bitcoin in the period from August to November maintained a low volatility record, data show that during this time, bitcoin volatility was less than the S & P 500 index, but with the fermentation of bitcoin cash events, bitcoin fell more than 11%, the downward trend has accelerated the other leading digital assets and small market capitalization encryption currency.

According to CoinMarketCap.com, the peak of encryption currency industry since January has depreciated more than $660 billion. Data show that bitcoin since December 2017 highs fell more than 70%.

Including the chief executive officer of BKCM Brian Kelly and Coinshares CEO Meltem Demirors, the famous investor said, between cash and bitcoin bitcoin SV hash power warfare is the main catalyst encryption currency market sell-off sharply.

Encryption sentiment light money market

At present, most investors and traders on the market is still in large positions or encryption currency trading shilly-shally high risk and high return, mainly because of poor market conditions. The volume of trading activity is weak, low absolute intensity of recent encryption market fell to reduce the possibility of corrective rebound.

After 24 hours valuation of 270 billion dollars, take weeks to months to start the integration period of short-term rebound in the appropriate encryption market.

Currency traders and encryption technology analyst DonAlt said, if bitcoin failed to quickly return to the $6000 area, is likely to fall further.

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