Bitcoin prices this November fell dramatically, as the cryptocurrency market fell more than 40% making people feel desperate and panic sell. Other cryptocurrencies also fell in about the same percentage. During this time the SEC also got to the action. November was a disaster month for cryptocurrencies, and for the market in general.
Bitcoin Prices A Rollercoaster, But Nosediving
Bitcoin, the original cryptocurrency, suffered a long and disastrous November. It lost more than 40% of its value in a month where volatility was the name of the game. After passing much of October over the support level of $6K, when it came down, it came crashing. It blew through the $5K support and went as low as $3.6K. There it marked the support and now is stable over $4K.
The cause of all this seems to be in two key events that happened during the month. First are the disaster and fear that the Bitcoin Cash Hard Fork caused, triggering a selloff. the other has to do with the actions of the SEC, that has turned to attack mode against cryptocurrency startups that don’t meet regulations. The first one is easy to explain.
The Bitcoin Cash hard fork came crashing the market. This due to the fear of what was going to happen with the funds of the people. This was a hostile takeover, and users preferred to cash out and sell their coins in advance of the event. This started an offer for plenty of altcoins and even bitcoin that were thrown into the market.
Also, there is the theory that both sides were renting mining hashrate to win the war, and paying large amounts of bitcoin. This bitcoin came to fill the market and dump prices down
SEC Flexing Its Muscles
Another thing that could have been involved in crashing the market was the newly acquired attitude of the SEC. The Securities and Exchanges Commission has gone this year from giving advice to cryptocurrency users to fining and subpoenaing some projects out there. this causes a negative sentiment that might have influenced into the market drop.
This month they fined EtherDelta, a decentralized exchange with more than $400K for the charges of selling unregistered securities. They also fined two more ICOs with more than $250K each. And to put the cherry on top, SEC chairman Jay Clayton declared that there will not be bitcoin ETFs till the underlying market stabilizes and gets safer.