At its core, the current cryptocurrency craze is simply an unprecedented wealth transfer to China from the rest of the world.
Until the end of 2013, Bitcoin was predominantly traded for US dollars. However, after the crash of 2013, miners consolidated in China and Bitcoin mostly traded for Chinese yuan[1]. At the start of 2017, regulators in China cracked down on digital currency exchanges[2] and trading quickly moved to Japanese yen and, more recently, South Korean won[3].
All of the early buyers are selling. This won't end well.
Until the end of 2013, Bitcoin was predominantly traded for US dollars. However, after the crash of 2013, miners consolidated in China and Bitcoin mostly traded for Chinese yuan[1]. At the start of 2017, regulators in China cracked down on digital currency exchanges[2] and trading quickly moved to Japanese yen and, more recently, South Korean won[3].
All of the early buyers are selling. This won't end well.
[1]: http://www.businessinsider.com/bitcoin-trading-china-yuan-re...
[2]: http://fortune.com/2017/01/05/bitcoin-plunge-china-currency/
[3]: https://www.bloomberg.com/graphics/2017-bitcoin-volume/