Although there are a lot of people included in this discussion, it is important to follow professionals. Jordan French from thestreet.com combined most valuable opinions and marked 3 main reasons for a current crisis.
1. Tax Season
Making money last year means paying taxes this year. As a lot of people had to report profits, now they need somehow to pay taxes and turn their crypto assets into fiat money. As Bitcoin and Ethereim are most liquid assets, it is assumed that turning these coins is the easiest way to cover taxing (and these coins fall).
2. Potential regulation
Participants of the market (S. Clark, CEO of Coinsource) mention that the pressure is provoked by non-positive hearings in congress this March. Chairmen of SEC and CFTC showed determination to build a comprehensive regulation, but a ruft of subpoenas issued by SEC to crypto companies did have a negative impact on expectations of cryptotraders.
3. Mt. Gox weight
It is now known that Mt. Gox, with Nobuaki Kobayashi acting as its trustee, sold roughly $400 million in Bitcoin between December and March. It is believed that the bitcoin that was sold by creditors on private sales was moved directly to exchanges and then turned into fiat. Surely, this sale might have affected the price.
However, this is not a full list of potential reasons. Angela Slovina, a user of Quora.com pointed out the following additional causes.
4. China’s relation to cryptocurrencies
It is still not clear what is the exact opinion of Chinese government on crypto markets. Last news (banning mentions of crypto in social media and search engines) in addition to its Financial Service Commission claiming that the Government is ‘’considering shutting down all local virtual currency exchanges’’ does not bring positive.
5. Google (and other social media) ban on cryptocurrency
Promotion of cryptocurrencies became strictly restricted on main media channels. This limitation was applied as a response to a mass advertising of low-quality projects during the last months.