Already in 2018, cryptocurrency has faced three sharp dips: one on January 17th, one of February 16th, and one on March 13th. It is unlikely that we will ever know what exactly caused these dips, but we can speculate and examine a few possibilities. Here is a list of possible factors that contributed to March the 13th’s dip in particular.
Google banned ads about cryptocurrency
On March 12th, Google announced that it would ban ads for cryptocurrencies, crypto-related services such as exchanges, and ICOs. The ban, which will take effect in June, could reduce the number of people who invest in cryptocurrency, but even word of such a ban could negatively affect the market. It is possible that people feared that a lack of ads would damage the market so much that they decided to sell their assets and leave.
People started to theorize that Mt. Gox could be damaging the market
It became apparent that somebody with access to Mt. Gox’s official Bitcoin address had been selling off large quantities of Bitcoin during late 2017 and early 2018. Somebody on Reddit found a correlation between Mt. Gox selling Bitcoin and when the market begins to dip. While no Bitcoins were sold near March 13th, it was around that time when people became aware that Mt. Gox could have the power to tank the market so quickly, and that they still have a vast amount of assets left to sell in the future.
SEC Launches ICO investigations
On March 15th, the co-director of the US Securities and Exchange Commission (SEC) made a statement that they are handling ‘dozens’ of ICO probes. News of this instantly plummeted Ethereum’s price, mainly because a huge amount of ICOs currently run on Ethereum’s blockchain. While this is not one of the causes of the initial dip, it is indeed a contributor. Ethereum is one of the few top-performing cryptocurrencies to fall further than its price during the initial February 6th drop. It is unclear precisely what the investigations will be regarding, but it could regard funding.
As the March 13th dip is still currently happening, it is likely that there are other factors which are taking place, which we may not be knowledgeable about for some time. In many cases, there are several reasons why dips of this size happen.
So, what do you think is causing all these dips right now? Let us know by joining in the discussion on out rapidly growing Telegram community.
Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.