Bitcoin price has crashed - Here are the reasons why

[BrolySSJ 7899]

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. 

[Hanbal 359]

Perhaps this could be those of the reasons why bitcoin price crashes , but anything can happen meby soon the price will keep on to increase further more again if you look back in history nobody ever imagined that bitcoin would reach todays present price this means that bitcoin is a system that is difficult to predict it price correctly.

[tienda 8776]

I'm sure in this month and maybe the next month Bitcoin price will suffer a big volatility turbulent. But I think right now the reason of the Bitcoin price crash, is possible or maybe is the USA stability politic situation, after they have changed the president without problem like what happened days a go capitol. So it is possible the dollar started to recuperate its value against Bitcoin.

[Kami505030 1617]

It would not be wrong if we say Bitcoin will cover the whole world in few years and this currency will be the financial and banking currency in every country.

As this currency is famous every where and millions of dollars are invested in Bitcoin.

This is why the current price of Bitcoin is little low and every one is talking about it.

[abohasnn9 2401]

My friend Ahbark is old, Bitcoin collapsed dramatically once, and in 2017, when Bitcoin was not supported by companies, platforms, countries and institutions, it quickly collapsed after reaching $ 20,000, it flipped down and broke the resistance barrier and remained down until it stopped after losing all the progress that it had.  Thank you so much

[MonaAhmad 146]

My dear friend, I see that this decline is temporary and continues for several days, and then it will return to rise over forty thousand dollars. It is now affected by the events that took place in the United States of America by the change of power.

[abdullah553 1981]

On 1/22/2021 at 5:18 PM, BrolySSJ said:

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. 

Perhaps the collapse of Bitcoin was due to the Corona virus, it was making all the global markets really collapse and also making digital currencies collapse dramatically

[hani20980 2706]

I think that's normal we most not forget that bitcoin price jump from 19k$ to 42k$ in a few days

so that's expected it's a simple correction and im expecting the price to go more lower to 23k$-25k$

before it rise again but that's not sure since we have a high demand

[Khan 1414]

On 1/23/2021 at 7:29 PM, abohasnn9 said:

My friend Ahbark is old, Bitcoin collapsed dramatically once, and in 2017, when Bitcoin was not supported by companies, platforms, countries and institutions, it quickly collapsed after reaching $ 20,000, it flipped down and broke the resistance barrier and remained down until it stopped after losing all the progress that it had.  Thank you so much

A huge transaction has been happen in the crypto market when the BTC reaches to $41k and the transaction is claimed to be in $100 Billion which suddenly down the whole market.

 

Edited January 25, 2021 by Khan
mistake in words

[yonkii 3205]

I don't think price collapsed. It is 30% lower from the all time high which was a few weeks before, and it is for first time changed in the daily pattern having a bearish outlook, but this will take weeks to be sure it changed the trend. In my opinion the trend is intact and only for a few weeks more it could drop. The news affect the price a lot, the price reached very high too and right now I don't exclude any scenario.

[Sykkuno 2887]

The simple explanation is one that we recently learn, it is Grayscale buying lower than previously, meaning less investors were interested in January, so prices dropped as soon as the Grayscale investors started buying less. Maybe the PayPal effect is also over, this remains a mystery as PayPal doesn't give access to wallets, and perhaps they may even not buy the amounts requested by their users, but just give any kind of numbers PayPal wants in their app, since they are not having oversight by anyone.

[Ameralsamt 2558]

Dear, the main reason in my opinion behind the low price of Bitcoin is the high number of selling of these currencies in all platforms all over the world, which has negatively affected the price of Bitcoin, and the welfare of what is rising the price of Bitcoin because of the frequent purchase of this currency. 

[Cleaner 2549]

2 hours ago, Sykkuno said:

The simple explanation is one that we recently learn, it is Grayscale buying lower than previously, meaning less investors were interested in January, so prices dropped as soon as the Grayscale investors started buying les

Currently the price of Bitcoin has crashed, there are many reasons for the price to crash.  However, we know that the price of Bitcoin depends on supply and demand. At present, Bitcoin has fewer buyers and more sellers.  However, large companies invested in Bitcoin, which increased its price.  However, the price of Bitcoin corrected at the beginning of the year, so the price of Bitcoin dumped and began to pump again.

[Jack764 1841]

Many companies and people who bought Bitcoin entered in large quantities, for here the people who had risen the price a lot so they sold and this is what made it decrease 

[cryptovlek 2597]

I am sure that many beginners bought the top, I don't have to say something about that, there are prices that Bitcoin can easily reach again in very small time and selling with a big percentage of loss maybe is not correct decision, but it always needs to be strong with hodl and have a lot of patience.

[percare 3192]

It keeps crashing and the reason may be beyond just the obvious that the market is having strong resistance and selling. The fears for coronavirus being continued and the lock downs being enforced, as well as the new strain of the virus may bring fear in the markets. As in 2020 we should look in all markets together, and there is tumbling right now. I hope we don't see another collapse like exactly a year ago.

[Syedbesharat 5423]

BTC have finally made comeback and hit nearly $42K which is new record of BTC highest price in history of coin. The new adopter enjoyed the Bull run and start selling their BTC. The old one believe at BTC and holding for more price rise. The price of BTC is in current state is because of bullish selling where the people think BTC is a bubble and earn as much as you can from it now. The panic selling and mis information is causing the price drop of BTC in market. 

[Dedo 263]

I agree with you that the near future will carry a boom in the price of the bitcoin currency .. This reality is imposed by the current circumstances, especially after the spread of the Covid epidemic and the interest in digital currencies around the world began to increase .. I think that any currency witnesses an increase or decrease in value and this is very normal

[Khan 1414]

On 1/26/2021 at 11:37 PM, Nasir999 said:

Nice post from you!!. Everything works with time actually, time to rise and fall. This is beginning of year and with the feature you mentioned above on financial stability might be one of the effect causing the price rate. With time, it will rise in price, just need patience.

BTC market is mostly manipulated by the big investors and the indications, quotes and other such thing from big investors put a huge effect on the BTC pump and dump.

[Obliv0n 333]

I always associate the falls of bitcoin with two factors, the whales want to take their profits or the futures markets begin to liquidate their assets, it is for this reason that the movements of these should always be monitored, in order to foresee a future fall in the market

[Raqeebzy 6456]

For me I would say, an unprecedented profit taking after the massive bull run was the first and the main catalyst of the dip. Statistically, it had never happen in ages.

More whales continue buying into bitcoin as institution (like Goldman Sach and micro strategy) and even a lot individually. More whales entering into BTC market means more control and more dip after bullish runs (for more volume of profit taking and sell offs.

 

[MT khan 1886]

@BrolySSJ Really dear you are right, you have explain very will this is the main reasons of crashing of coins, thank you for the useful and knowledge able topic I have gain more knowledge from your experience.

[Whited35 15285]

On 2/1/2021 at 9:27 PM, Obliv0n said:

I always associate the falls of bitcoin with two factors, the whales want to take their profits or the futures markets begin to liquidate their assets, it is for this reason that the movements of these should always be monitored, in order to foresee a future fall in the market

Interesting to look the institutional funding in Bitcoin. We do not know when will it crash in the markets. If some bigger whales or miners roll out to sell their holdings, a sharp dump is on the way which may tear up the top altcoins. Currently, Bitcoin has the strongest support and resistance above $40K so market can still follow bullish uptrend. 

[kyoukage01 3181]

On 1/22/2021 at 11:18 PM, BrolySSJ said:

Let me know if you know of any other factors that are resulting in the price drops that we are seeing at the moment. 

How come NOBODY made ANY mention of this news in the previous comments?

Quote

"Bitcoin fell as much as 11% on Thursday, hitting its lowest level in nearly three weeks, as the popular cryptocurrency was hit with a double whammy that jolted faith in its user base.

 

First, Janet Yellen, President Joe Biden's nominee for treasury secretary, suggested during her confirmation hearing on Tuesday that lawmakers "curtail" the use of Bitcoin because of its use in illicit activities.

 

And second, a debunked report from BitMEX Research on Wednesday suggested that a critical flaw called "double spend" had occurred in the Bitcoin blockchain."

 

https://markets.businessinsider.com/currencies/news/bitcoin-price-double-spend-flaw-critical-report-suggests-2021-1-1029990921

Note: article was written the day before this topic.

Similar news about the alleged Bitcoin double-spending has been all over the internet. Someone should have made a clear comment about this. If you're not convinced with how serious the double-spending issue can be, you guys should read both the article above and the Wikipedia entry in this link.

 

On 1/22/2021 at 11:18 PM, BrolySSJ said:

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. 

We don't have to wait that long. Just a single bombshell announcement from the SEC about the company Tesla's involvement in crypto was all it took to make Bitcoin bullish again.

 

On 1/28/2021 at 1:08 AM, percare said:

It keeps crashing and the reason may be beyond just the obvious that the market is having strong resistance and selling. The fears for coronavirus being continued and the lock downs being enforced, as well as the new strain of the virus may bring fear in the markets. As in 2020 we should look in all markets together, and there is tumbling right now. I hope we don't see another collapse like exactly a year ago.

Privately-owned companies and institutions are getting more and more involved with crypto now, so we may not see another collapse like you've mentioned. For an example, going on with what I've said about Tesla, it was reported that the company bought around $1.5 billion dollars worth of Bitcoin. I've already written my suspicion about the Tesla's connection to why the crypto market didn't crash as it should in another post.

On 2/10/2021 at 12:11 PM, kyoukage01 said:

Remember when BTC prices went DOWN to almost $30,000 last month (January)? And from what I understand, according to the SEC form Tesla acquired Bitcoin, also in January this year. Do you think the reason BTC didn't nosedived to oblivion when there was negative news spreading around last month is because Tesla acted as a cushion and has been buying those coins when it got cheap? Coincidence, maybe? So maybe the next time BTC falls again, another company will pick up cheaper BTC, emulating what Tesla probably(???) has done.

 

Edited February 12, 2021 by kyoukage01

[Froshk 1828]

It's surprises me when I hear that people lament about crashing of the value of bitcoin, bitcoins drop in value  is always temporary and afterwards it's rises above our expectations but all these are functions of demand and supply