According to Catalini, it is because of the hype and excitement around the cryptomarket through the end of last year, a correction was bound to happen. He concluded. “The space was ripe for a correction after the craziness of the end of 2017.”
Bitcoin continues to slide, now into February, and it seems to be borne on the back of a lot of negative press – some real, and some less than convincing. As several countries, notably China and South Korea, target a crackdown, Neil Wilson, analyst for ETX Capital, said: “Explaining moves in Bitcoin is always tricky but this plunge … may well be a result of recent signs that regulatory pressures are building.”
The Korean crackdown was a paper tiger and debunked by the countries highest authority, but bad news leaves its mark on such a speculative market. Regardless, today’s price proves that negative press has a big role to play in the way the market moves. And the flipside of that is so does positive news.