The Situation of the Crypto Money Market in the First Quarter of 2018

The crypto money market ran a record-breaking record in 2017, but a serious decline broke out in the first quarter of this year.

After the growth of the market last year, many governments have been attracting attention and regulatory authorities in various countries have struggled to regulate the crypto money market.

As a result of the fact that the crypto money market, which has been growing in the last years of the past year, has fallen into a fall earlier this year, the market has not been legally defined and the growth in 2017 has not been very healthy

In this article, some data points will be discussed and evaluated in order to examine the first quarter of 2018.

Here are the most important trends that shaped the first quarter of 2018 in terms of crypto money:

1. Crypto Money Market

Bitcoin, which has seen the 20,000 dollar limit in the last quarter of 2017, experienced a drop of up to 51 percent in the first quarter of 2018.

Many of the subcodes in the market were also seriously affected by Bitcoin's downfall and, after all, went after Bitcoin. According to some studies, the correlation coefficient between bitcoin and subconsin ranged from 0.7 to 0.9. The total market volume of the crypto money market also depreciated by about $ 350 billion during these periods.

These numbers can be quite a lot to the human ear. After all, we are talking about a depreciation of $ 350 billion. However, the crypto money market people's view of the market was not so negative. [79659008] Again, 86 percent of respondents believed that the downturn was a "natural" end result of the massive increase at the end of 2017, and 62 percent of those surveyed believe that The fall of the living depends on the legal arrangements seen around the world.

2. The Market is Maturing

At the end of 2017, companies such as CBOE and CME had begun to trade futures on Bitcoin, and until the beginning of 2018, there was a steady increase in the volume of these transactions.

At the end of the first quarter, there were about five thousand short positions, and there were about three thousand long positions.

This 'insecurity' sentiment, of course, also influenced the crypto money market, and it is obvious that this effect is not positive.

According to the San Francisco Federal Reserve Bank researchers "a new investment opportunity led to a reduction in demand for Bitcoin spot market, and thus to lower prices."


Bitcoin miners, however, did not seem to be impressed by the decline in the market.

As you know from the operating expense of securing the Bitcoin network, the hash rate declines. This rate would normally be in line with Bitcoin's market volume. Especially in the last quarter of 2017, both the market volume and the hash rate showed a remarkable increase. As we have said, normally the ratio between the market volume and the hash ratio was right, but this changed slightly in the first quarter of 2018.

Bitcoin's hash rate is, of course, compared to the bit rate of Bitcoin Cash. Although Bitcoin Cash is now the second crypto currency with the highest hash rate, it was only as much as 12 percent of Bitcoin in the first quarter of 2018.

It is also worth mentioning that miners love to think long term in short voyage.

4. Tax Problems

Serious investors in the crypto money sector were seriously concerned about 'tax'. It is clear that investors are also concerned if the crypto money market (based on the total income of the market and the average tax rates of different governments) creates a tax revenue of around $ 70 billion globally in 2017.

How exactly the crypto money will be taxed It's not certain. Of the respondents surveyed by CoinDesk, 32 percent said they pay tax on income they earn on crypt money, but those who do not pay tax if they have a tax liability.

Of the US citizens surveyed, 82 percent and 62 percent of non-US citizen survey respondents said the same comment. So we can assume that neither governments nor investors can fully understand the taxes to be paid over crypto money.

We have noted that 82 percent of US citizens and 62 percent of non-US citizens have difficulty understanding crypto-money taxes. So why is there a serious difference of 20 percent? The reason why US citizens live more difficulties in this regard is that, while others embrace cryptographic money and Blockchain technology much faster, the United States is lagging behind the race.

5. Growth Continues in ICO

We can not say that ICO activities have been seriously affected in the crypto money market, because in ICO market around 6.3 billion dollars were collected in the first quarter of 2018.

In the first quarter of this year, ICOs collected accounting for 25 percent of the money in the $ 1.7 billion Telegram ICO. The ICO of the Telegram is followed by the ICO, which is organized by Dragon and collects $ 320 million dollars.

We can also say that there are serious differences between ICOs from 2017 to 2018. ICOs are now raising more money on a monthly basis, as well as a significant increase in the average amount of money ICOs collect. We see that ICOs collect an average of 16 million at the end of 2017 and an average of 31 million at the beginning of 2018.

6. Transaction Fees Fall

The transaction fees on the Bitcoin network now reached really overwhelming levels by the end of 2017 and there were days when there was an average transaction fee of around $ 40. In fact, some companies have refused to accept payments over Bitcoin because of this soaring transaction fee.

When we look at crypto parcels other than Bitcoin, we see a drop of between 60 and 90 percent in transaction fees.

High transaction fees may have distracted people from using crypto money, but again, it is surprising that there is a decrease in the number of transactions even though there has been a decrease in transaction fees. As the transaction fees reflected the demand at one point, we saw significant increases in transaction fees at the end of 2017.

There are certain ways to bring transaction fees to lower levels (such as Lightning Network).

78% of CoinDesk survey respondents reported that the Lightning Network It is a positive development for Bitcoin and it is stated that they want to use LN. 21 percent of respondents believe that the use of Lightning will make Bitcoin more "central."