Previous three weeks had been good for the crypto world, with we seeing mostly positive action in almost all the Cryptos, Cryptos gained some of their lost levels while Bitcoin too slowly-slowly was rising from 5900$ levels which it kissed on 13 August. Seeing the action from last some weeks, it was looking like maybe Bullish Wave is coming in crypto, the one that will surpass all marks touched before, until 5th September, the day bitcoin Plunged again from high of 7400$ to 6260$, a whopping 15% in a day.
While its not the worst Price fall we have seen in Bitcoin market but it surely is one of big fall we have seen and Bitcoin was not the only Bad performer of the day, Ether took the dip for 27% while other major cryptos like BCC, LTC, XRP, EOS also falling in double digits . Such Price fall has not been witnessed from a long time in the crypto market since all crypto were already dwindling near their lower prices since the market started coming down at Start of the year.
Many curious of us are interested in finding what caused it so that we can write it in our Trade books or just tell others and look wise in a group. Although there is no strong single reason there are a lot of reasons which occurred within a short span of time causing consecutive fall in prices with the main culprit being the Sentiment
Sentiment- How its the main Culprit Dude, I had a good mood.??
We will come to that but later, at this time we have to figure out what caused the sentiment and why we are pointing it to be the real Deal. Let’s see some other factors first.
Fundamentals- Rumours had been that SEC has shown cold regards for crypto ETF now and maybe it can start from next year, The article was published on 4th September on CNBC on Personal views of Bill Barhydt, CEO of an unknown and one of too many Bitcoin Payment Start-Ups, Abra. You can read the article here. As evident from this article expressed view of Bill Barhydt are of mere personal nature and nothing links to SEC view on the matter but just past rejections and speculations.
This article was further published on cointelegraph with a heading that can give a headache to investors titled “ Abra CEO: SEC Denies Bitcoin ETFs Because Applicants Do Not Fit Industry Archetype”. Since Crypto Traders are already in a hurry to sell on rumors they cashed in on this opportunity and sold heavily in conjunction with the news that Shapeshift, an Exchange which provides Exchange services through third parties will soon be needing membership with Personal information, which badly hit many wallet users such as Jaxx and other such third parties which allowed anonymous exchange .
While above news might be of impact but they are unable to trigger a massive sell-off of such level since Article was already published a day before on CNBC and Cointelegraph is not a site of huge viewing so that it can trigger a massive sell. But for sure they created a negative sentiment again in an already bearish market, which is a dangerous thing if you’re on the buy side.