It’s been a bad month in crypto-city.
Bitcoin, the largest cryptocurrency by market cap, is trading at $7,076 — a 7% decrease in the last 24 hours and a 34.6% decrease on a monthly basis. The second largest coin, Ethereum, is being absolutely pummeled, having dropped 5% to $398 in the last 24 hours, and losing more than half of its value (55.1%) since March 1. And none of the other major cryptocurrencies fared much better.
A part of this price drop can be explained by an onslaught of bad news, mostly having to do with increased regulatory scrutiny of ICOs (initial coin offerings) and cryptocurrency trading in most of the world’s markets. The fact that Facebook, Google and Twitter all banned cryptocurrency-related ads on their platforms didn’t help. Other recent news, including a rumor of a new mining chip being built for Ethereum (which could make it more centralized) as well as an important, bearish technical indicator called the “death cross” happening on Bitcoin’s charts, have certainly contributed.
The news don’t matter
It’s hard to shake the feeling, however, that the prices have recently been going down regardless of the news cycle.
Edward Cooper, Head of Mobile at Revolut, seems to think so. “I don’t think the recent market movements in the crypto space are particularly related to any current news story. The price swings in crypto that are caused by news stories are generally much more extreme than we are seeing now,” he told Mashable via e-mail. “It’s a natural cooling off period following an unprecendented bull run towards the latter part of 2017.”
There’s certainly been a fair amount of good news in the crypto space as well, but none of it did much to change the bearish trend. Just recently, Morgan Stanley analysts said Bitcoin could be looking at a “strong recovery.” Money is still pouring into blockchain-related startups. And there’s exciting news on the development front for both Bitcoin — check this handy list — and Ethereum, whose co-founder Vitalik Buterin recently proposed a novel new way of scaling Ethereum called Plasma Cash.