March 8th saw Bitcoin plummet 20% from $10,651.74 to $9,481.45 within the space of one hour. Amidst Bitcoin’s fall many investors are wondering if they are witnessing a crash or a correction.
A market crash takes place about once every 3.5 years and is signaled by a 20% drop. A single market crashes about once every 3.5 to 4 years. Corrections aren’t so rare at all, as they usually occur up to 3 times a year. A correction is signaled by a decline of 10% or more and usually puts a pause on an upward trend.
Given the fluctuating ups and downs associated with Bitcoin and other cryptocurrencies, it can be hard to pinpoint where the coin currently stands. The fall occurred simultaneously with reports that unauthorized sells were taking place on Binance, a popular cryptocurrency exchange. A statement was left on the popular forum Reddit by a representative with Binance. He stated, “We are investigating reports of some users having issues with their funds.”
The representative later stated that all withdrawals have been disabled temporarily and that they were in the process of reversing any trades they found to be suspicious. He further stated, “As of this moment, the only confirmed victims have registered API keys (to use with trading bots or otherwise) There is no evidence of the Binance platform being compromised.”
That said, the plummet in Bitcoin’s prices can have something to do with the United States’ Securities and Exchange Commission (SEC) announcing that cryptocurrency exchanges will now be required to register with them.
SEC released this statement, “If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration. The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not. Many platforms refer to themselves as ‘exchanges’ which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange.”