Since the last week of December 2017, the cryptocurrency ecosystem has been going through a lot of turmoil. From its high of 20,000 USD, Bitcoin had reached around 9,500 USD. A fall of more than 50%. This made the investors think twice before investing. Let us see below some of the reasons why not only Bitcoin but the entire cryptocurrency space had been going through a tough phase in the past 4 weeks or so.

China Fud: After banning the ICOs in September, rumours went round that China were also going to ban the cryptocurrency exchanges operating out of its territory. The statement was published in one of China's leading website that it's going to ban agencies providing exchange like services. This added a solidity to the rumors of ban in the country and the cryptocurrency market took a nose dive. As we had seen in September,2017 that any news coming out of China has a huge impact in the cryptocurrency market for that moment, similar was the case this time around as well.

Korea Fud: South Korea being one of the most prominent players in the crypto space, is always on the foresight of the stakeholders in the crypto space. Therefore, even a small negative news coming out of the country affects the entire market accordingly. Therefore, statement coming from one of the major ministry's of the country, stating Korea is looking at possibilities of banning trade of cryptocurrencies, had to affect the emotions of the accordingly. Hence, the market again saw major sell offs resulting in drop of around 30% in the value of cryptocurrencies. However, later it was clarified that there was no such official incident happening within the country. Also, it was later found that officials of the the Korean government were found guilty of insider trading.

India Fud: It came by a suprise, when India, which is not such a prominent player presently in the crypto space caused the market to go down by more than 35% when a news stating that the banks of the country where disallowing transactions to and from the cryto exchanges in the country. However, it was clarified from one of the major exchange, pocketbits.in almost instantly that they had everything sorted.

Technical Reason: When we look at the chart of Bitcoin, we can see that there was no support in the chart for the sudden rise of Bitcoin to 20,000 USD and hence it was quite obvious that the prices had to come down by more than 50% before it can again cross the 20,000 USD mark and reach new highs. Now, that we have the support building at around the 10,000 USD mark for more than a month, one can easily say it's just a matter of may be couple of weeks before Bitcoin hits new all time high.

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