The past week in the crypto markets hasn’t been such an appealing one for crypto investors, and this isn’t surprising given the current massive sell-off been experienced. The reality is, the majority of crypto assets are seeing such a huge loss, forcing many people to sell-off what they currently have as they fear that the market may not recover after this bloodbath.
What’s Behind The Scenes?
Okay, while the crypto markets may be experiencing a tide of massive sell-off, we at Digital Coin News want to look at what’s happening from a broader perspective. You’ll recall that the SEC recently slammed many ICOs with cease and desist orders for offering investors unregistered securities. What this means is that many of this ICOs will now have to refund investors and to do that, they would have to sell-off and by doing this, volatility in the crypto markets is bound to be affected. On the flipside, should they decide to contest the SEC’s decision in court, they would clearly need to raise money to pay for legal battles, which may in-turn necessitate a further sell-off more assets.
This singular fact has resulted in panic selling across the crypto markets. And if you think the selling is over, you’ll have to rethink your positions again. And until we see a significant rise in the total market capitalization, we may be in for some more sell-off.
Something To Cheer About
While it may not all be rosy in the crypto markets at the moment, it would interest you to know that the crypto industry is attracting lots of interest from institutional players. As a matter of fact, it was announced some days ago that Bakkt would begin trading in January, 2019. More so, the largest bank in Japan, MUFG recently stated that it is considering using ripple for its cross-border transactions. Elsewhere, City Bank with over 200 million customers will also soon commence trading bitcoin. So, despite the negative trend in the crypto markets, you’ll agree that these assets class are here to stay.
At the moment, you must realize that the market will do what it will do, so all we have to do now is wait for the best opportunities.