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2015 January Initially, the cryptocurrency market suffered a sudden and significant slowdown, Bitcoin (BTC) lost about 80% of its value in just a month. This phenomenon has a lot to think about what led to such a drastic price. To dive into the causes of this mass fall, let us investigate the main factors that contributed to the loss of Bitcoin.
Ethereum Carpet: Fall Catalyst
As we know, Bitcoin 2009 Began an anonymous person or group using the pseudonym Satoshi Nakamoto. Its initial success is largely determined by its innovative technology, which has developed a decentralized system and without confidence in safe electronic transactions. However, over time, Bitcoin had to face increasing competition from other cryptocurrencies that offered qualities similar to lower costs.
Ethereum (ETH), which 2015 Started with Vitalik Buterin, often recognized for disrupting the traditional Blockchain landscape. The Ethereum intellectual contract platform allowed developers to develop decentralized programs (DAPP) without the need for central government or mediator. This created a new paradigm of safe and effective operational treatment.
Ethereum Carpet: Fall Catalyst
However, not only the introduction of Ethereum has led to Bitcoin decline. Two cryptocurrencies had different market structures and use cases. The Bitcoin prize was greatly influenced by its limited supply (only 21 million parts) and admission as value and exchange measures.
On the other hand, Ethereum acquired the basis for the growing ecosystem of decentralized programs that attracted new users and developers. The Ethereum Intellectual Agreement Agreement allowed developers to develop complex programs that could communicate with each other in a decentralized way, promoting a more open and interacting ecosystem.
Price drop: Complex interaction of factors
So what led to a rapid drop in Bitcoin value? Several factors contributed to this phenomenon:
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- Market Sensation : Ethereum ecosystem rug has led some investors to bet against Bitcoin, realizing that it is less safe and unstable due to the failure to support decentralized application.
- Liquidity Problems
: When Bitcoin has become more popular, the liquidity on the market has fallen, which makes it difficult for traders to buy or sell money at competitive prices.
- Advanceness of regulation : Increasing regulatory intervention of cryptocurrencies such as Bitcoin caused a sense of uncertainty and volatility of investors.
What is recently reduced by the cost of alternative currencies?
The current decrease in cryptocurrency prices can be partly attached to several factors:
- Regulatory uncertainty
: As mentioned above, the regulatory exam has increased investors’ volatility and uncertainty.
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- Too much saturation : Increased Ethereum ecosystem power has increased competition for attention and adoption, which can reduce demand and decrease in price.
- Market Sensation : The decline in the value of Bitcoin was partially motivated by investors who allow them to be less safe and more unstable due to the lack of applications for decentralization.