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The crypto industry is losing its appeal due to a lot of bad headlines hitting the wires, and Bitcoin is one of its most prominent victims as executives and investors are getting nervous. Also, news like NVIDIA dropping big in Wall Street and the Bitcoin Cash hard fork war are not helping too much.
One of the indicators for a depressed Crypto market is the Bitcoin price that fell below $5,000 on Monday to reach its lowest level since October 2017 at $4,625. The unit has lost 75% of its valuation from all-time highs reached last December. Only in 2018, BTC/USD has dropped 65%.
There are many reasons for the drop, Deloitte’s Blockchain consulting division Linda Pawczuk cited company executives getting nervous about the technology. Crypto market is hitting the news due to bad policies and bad actors that are not what Blockchain and crypto market are. However, “boards are nervous that blockchain is affiliated with bitcoin and altcoins and ICOs, and what do boards do to protect their investors? So it has not helped us, the association with the bad actors.”
Pawczuk commented that people are concerned about the security of information; however, she explains what the perspective and the technology behind bitcoin and the 2,000 altcoins is. “Can we stop talking about my bad brother? Can we start talking about my brother who is the Olympic champion?” she said referring to the advantages that blockchain provides to society.
Controversy about the latest Bitcoin Cash software upgrade, or hard fork, has driven the market into a crypto crash and civil war as BKCM CEO Brian Kelly said last week in another interview. “So, we’ve got ourselves a crypto civil war,” Kelly said, “People started selling. That triggered stops. Everybody got concerned.”
Kelly expected the sell-off to be short-lived; however, it is going deeper and deeper with the BTC/USD visiting sub $5,000 levels, and Ethereum falling below $150 per unit.
Is it all about the Bitcoin Cash update? No, there are also other news like recent SEC regulation statements that said Boston-based Airfox and Paragon coin recent Initial Coin Offerings that involved selling cryptocurrencies tokens to the public were illegal as they sold unlicensed securities.
Mining technology champion NVIDIA reported disappointing earnings and weak forward guidance on Thursday. NVIDIA CEO Jensen Huang affirmed that “the crypto hangover lasted longer than we expected.” NVDA shares fell from $200 to $152 in just three trading days.
However, NVIDIA’s collapse cannot be attributed only to the end of the crypto boom, but also to the declining of the NVIDIA market share as other mining software companies like Bitmain has experienced growth in their businesses by the same period of time.
That being said, all the noise around Bitcoin and the crypto market is affecting all blockchain-related companies and markets. That is why part of the NVDIA collapse can be attributed to crypto headlines.
Long story short, news cocktail has sent the king of cryptocurrencies to its lowest level in more than a year.