Is the spat of recent FUD news the cause of the current red Crypto market?
In the past week there has been a rising number of FUD news reports disseminated throughout the crypto space. This after a wave of bullish reports in late April, highlighting how Bitcoin is on the minds of global Financial institutions, with consistent announcements of Fintec's entry into the crypto market. One of the most highbrow stories these past days, setting a dark cloud over this weekend's market condition was titled "World’s Second Most Valuable Cryptocurrency Under Regulatory Scrutiny " as reported by the Wall Street Journal.
This article and subsequent media coverage framed the story of officials from the Ethereum platform scheduled to meet with US regulators in order to judge whether Etherum is a security or not. At this time no official confirmation of such a meeting has been issued. Strangely enough I have seen posts in social media circles claiming these reports to be FUD.
I haven't been able to find any recap on the results of a meeting supporting claims that there in fact was a meeting with Ethereum officials and regulators. As it turns out there was no reason for this Super FUD Event to have spread as wide as it did, being that the Ethereum Foundation cofounder Joseph Lubin addressed this question, stating.
"We spent a tremendous amount of time with lawyers in the US and in other countries, and are extremely comfortable that it is not a security; it never was a security… many regulators that matter understand what Ethereum is.”
However for those who believe in equal and opposite effects, you would find an optimistic outlook countering this FUD when reading "Roger Ver Expects Ethereum to Outperform Bitcoin by the End of 2018" On Newsbtc.
Ethereum was not alone in what seems to be a retracement in the social sentiment of crypto currencies as a whole. The markets aren't the only place to track the course of Bitcoin and the future of Alt coins.
If you believe that there are institutional forces that manipulate the market in order to shake out week-hands, in coordinated plays to secure greater and greater positions, you might be more inclined to believe that closely following the daily news cycle provides clues leading up to market volume performance. There is a delay of about 7-10 days from my estimation from the point a big enough news report registers at the exchange market level.
We are now primed or maybe "Being" primed for a new wave of positive news reports ahead of the 2018 Consensus event taking place in New York City. It will be the STORY of this upcoming week, leading into what may be a euphoric time for the whole cryptoverse. Culminating into a crescendo of partnership rumors, mainnet launches, and high-profile Tokens launching on to Exchanges. All by the end of May.
However, one must take into account the gravity of a prolonged bullrun in the next 30days and be prepared for inverse repercussions of such a run on the markets that is predicted and supported by historical trends at this time of year.
In another article published by CNBC titled "Cryptocurrencies are heading for a 90 percent correction in 'mass market wipe out,' investment bank warns"
Citing just 1 point in a 25 page research document by the investment firm GP Bullhound claiming: "Finally, cryptocurrencies will experience a heavy correction of up to 90 per cent in the next 12 months and very few companies will survive this correction. While this correction will be critical to cutting through the hype, its lack of impact on financial institutions will create new phenomena that we have never seen in any previous bubble burst. Nonetheless, once this ‘crypto-winter’ passes, the growth dynamics for the precious few survivors will be unprecedented"
Again backed by historical trends in the market, as the summer begins to end, we may see a BTC value beginning to settle, and possibly slump into this "crypto-winter" mentioned previously. The true impact of such a crash cant truly be predicted, however taking into account the increased notoriety Bitcoin and Blockchain technologies has had in the news media the resulting bear market may be amongst the harshest ever witnessed.
Now who's spreading FUD…
It's vital for any individual planning to invest or is already invested in the crypto market to stay current with the news in order to keep the fog of ignorance away. If just to maintain an understanding of why their portfolio is in the red, and when they may expect the next market growth pattern. The Ethereum FUD we have witnessed is driven by a constant concern of the future of crypto currency and the evolving impact it is having on the world stage.
I believe it is also another form of market manipulation to release bearish reports and ensuing click baitey pieces to keep investors one step behind the wave of potential gains. Am I calling out the various news outlets? Well yes, its done in politics and every other major industry, why not crypto. Your best form of defense against market manipulation is to stay woke.
Most importantly, always work towards identifying individual sources of news either via youtube, news sites, or here on Steemit. Keep your opinions open to reexamination and understand when an piece of information is stemming from rumors or firsthand accounts.
Much of my research is done using a Crypto News Tracker I created to efficiently find current article's from 10 various news sources . You can check it out in the link below.
It my attempt at fortifying myself again FUD, I offer it as a tool you can use to keep up with the times ahead.