On Saturday, the first cryptocurrency overcame the psychological mark of $ 4,000 and it seemed that the long-awaited growth began – the weighted average rate at CoinMarketCap reached $ 4207.
But after that, a decrease in quotations followed – as of this writing, the BTC course was close to $ 3,800. Together with BTC, other cryptocurrency rates began to fall. As a result, on the afternoon of February 24, the market fell from $ 143 billion to $ 127 billion.
Accordingly, some assumptions about what happened have appeared on the network.
According to one of these assumptions, the growth of market activity has led to an increase in the number of bots on cryptocurrency exchanges . Bots usually surprise no one, but there is a version that market participants, including some exchanges, could use bots to "increase" trading volumes, which also led to artificially inflated prices. As soon as the coin rate reached a certain level, the bots turned off, and the market began to decline sharply.
Other analysts believe that Bitcoin’s inability to break through a key resistance level of $ 4,200 led to a sudden change in market sentiment. For example, technical analyst DonAlt explained on Twitter that, unlike bitcoin, altcoins are currently "in the last phase of recovery", and that this indicates their positive future.
Also in Reddit appeared the theory that the reason was the temporary failure of the site to track data about the cryptocurrency CryptoCompare. The website uses the same API as the developers who are involved in creating trading bots. During idle hours from 5:05 pm to 6:30 pm (MSK) prices and the volume of trading on the CryptoCompare did not move. The author of the post u / bitcoinguppy says that a similar situation with the fall of the market was observed even when the site CoinMarketCap stopped taking into account data from the Korean cryptobirth .
Although the above is still at the level of assumptions, these versions cannot be ruled out. It seems that for the time being it is better for traders to adhere to the HODL strategy and hope that this was just a temporary downturn in the cryptocurrency market.
Publication date 25.02.2019
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