Within the past seven days, the crypto market has been slashed $65 billion in a trend that saw major coins including Bitcoin (BTC), Ethereum (ETH) and Bitcoin Cash (BCH) plunge in market values with some assets losing up to 50% of their worth. But what could be the driving force behind this huge crypto loss?
Chris Burniske, the co-founder of New York based venture firm Placeholder attributes crypto market distresses to three major factors; the Ethereum sell off, US Stock Market retracement and most importantly the Bitcoin Cash Hard fork which was characterized by the hash power war between Bitcoin Cash ABC and Bitcoin Cash SV.
According to Burniske, the sudden decline in major stocks and equities has forced investors to run through their portfolios wiping out high risk selections such as cryptocurrencies.
For the case of ethereum and Bitcoin Cash, Burniske explained that “Ethereum has been through a broader deleveraging from the ICO boom from last year where funds were raised and those funds were used to raise and it’s kind of a cyclical deleveraging. The third thing is…that there is a lot turbulence around a child of Bitcoin called Bitcoin cash, which has also forked and that has perturbed the market and broken that technical indicator and so we are searching for a new bottom in crypto land.”