Bitcoin Price Falls as August 1 Approaches

| Updated
by Tatsiana Yablonskaya · 3 min read
Bitcoin Price Falls as August 1 Approaches
Photo: tiendientu vietnam/Flickr

The total market capitalization of the cryptocurrency market has dropped from $110 to $70 billion.

The price for all the cryptocurrencies, whether we analyze Bitcoin or Ethereum, has been falling for the last several days. The total market capitalization of the cryptocurrency market has dropped from $110 to $70 billion.

Traditionally, Bitcoin has been dominating the market but it also decreased up to $2,042 as of the moment of writing. No wonder that investors are pretty much concerned of low prices – it especially refers to amateur investors who bought them at a much higher price.

Experts talk about three possible reasons for such price drop.

August 1 is nearby

The debates about possible increase of the Bitcoin block size have been heating up for a few years already. If the Bitcoin network is split in two parts – those who support the change in protocol and those who stick to the current protocol, it can simply result in massive Bitcoin devaluation.

August 1 will definitely be an important day for Bitcoin as well as for other blockchain-based cryptocurrencies.

Startups tend to conduct ICOs and cash out

Totally around $700 million has recently been raised in ICOs of various blockchain-based companies. Some of them don’t even have a product so it is highly possible that some are not worth the funds they have raised.

There will be definitely serious companies that will hold onto Ethereum upon the funds receipt, but obviously there will be those looking to make a quick buck that will immediately cash out.

Some regulation over these multimillion-dollar seed funding rounds is need. The projects starting ICOs must have provable business models, use cases, users, flowing revenue, and even profits.

Unregulated nature of cryptomarket

A great deal of the problem lies in the unregulated cryptocurrency market. Things that would result in jail time on the stock market are legal here. No wonder that the market is manipulated for one’s own gain. People run bots to buy and sell cryptocurrencies.

Put market manipulation to the panic that constantly arises among amateur investors once the price falls and you will understand the reason behind the current price fall.

Not all the cryptocurrency and blockchain startups are meant to disrupt the financial system but some certainly have the chance. The more mainstream the cryptocurrency market becomes the more market cap and prices grow.

James Wo, a founder of Huiyin Blockchain Venture, has recently presented the latest breakthrough in the cryptocurrency ecosystem – cross-exchange trading token Exchange Union Coin (XUC). The token is expected to enable cross-exchange trading, cross-exchange clearing, deposits and withdrawals among different digital currencies and assets. XUC will serve as a ‘universal coin’ that can be widely accepted and circulated.

Bitcoin News, Cryptocurrency news, News
Tatsiana Yablonskaya

Taking strong interest in blockchain, cryptocurrencies, and IoT, Tatsiana Yablonskaya got deep understanding of the emerging techs believing in their potential to drive the future.

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