Search the Community

The most watched cryptocurrency is Bitcoin. And rightfully so, as this is the currency that is the face of the crypto world and as such is the first currency that comes to mind when anyone mentions crypto. Therefore, for anyone in the crypto space, keeping an eye on the price of Bitcoin is a must. Even if you do not have any investment into Bitcoin, the Bitcoin market often influences that of the altcoins as well and therefore knowing the price and trends of Bitcoin can assist you in your own altcoin trades and analysis. Over the last two days, Bitcoin has been on the decline in price, as I am sure that many have noticed, even dropping to below $30k. For a coin that just recently (at the start of this month) topped the $40k mark, analysts expected a rise to $50k, but this seems to be short-lived as the price continues to fall. But what are the reasons behind this fall? One of the most important reasons that could explain this drop in price is the fact that the sell orders may be more abundant than the buy orders for Bitcoin at this time. This could either be as a result of people's financial position, or it could be contracts that are expiring and people are cashing in on them. In fact, in a news article, over $3 billion in contracts are expected to expire on one of the exchanges, and if this is all cashed out at one point, we could be looking at another drop in price in the near future. Another reason is that the continued drop could simply be panic selling. For those that are invested in Bitcoin and those that are newly invested in the coin as well, seeing the price drop below the 30k mark could cause a sense of panic among them, causing them to sell their investments now, either to secure their profits or to prevent further losses if they bought it at a high point. This panic selling is of course the number one enemy for any trader. In my opinion, the price of Bitcoin is not in the clear just yet, and I think that the next few days are crucial in determining how the price will proceed and how the future looks for Bitcoin. I think that despite the immediate future of Bitcoin the overall long term future does look bright and if you do have Bitcoin and are currently at a loss, I suggest being patient and waiting for the price to rise again. This could happen in a few days or even a few months, or perhaps years, but patience is the key to the profits from Bitcoin. Let me know if you know of any other factors that are resulting in the price drops that we are seeing at the moment.