Topic: Doesn't it teach, BTC Price will never go down if we won't force it to go down? - page 2. (Read 292 times)

I do think that it was not Elon Musk that did cause the sudden dump but rather it was a cumulative effect of a lot of things working together. There were governmental factors involved too and at the same time Chinese government created a lot of probelms for the miners. Social media did play a significant role but at the same time it cannot be the reason why we saw such a change, Maybe it was just price correction, manipulation and someone did sell off a lot of Bitcoins at once because they did make huge amount of profits, but let's look at that again *if the price fell, it did give us a chance to buy at the new low! Which is pretty great for most people* so I do think it was not a bad thing but rather it's an opportunity.

It's not that everyday Bitcoin price rises because what we saw is the result of the demand and supply moving. Plus the unpredictable price movement of Bitcoin due to lots of factors that causes it to move up and down. Also Bitcoin halving that occur every four years is the cause of why Bitcoin continue to increase unexpectedly.

Who would have thought that from the last ATH in 2017, we are seeing the price to go triple this year?
And if some guys out there expecting Bitcoin to dump straight to the bottom like the tulip mania it will need a lot of effort from all of the people who are holding Bitcoin to stop trading or let's just say we are in the world crisis as the worst case scenario like a WW3.

There will always be people who will panic sell BTC when some big man talks shit about that. And also the China's crush was huge because a lot of miners wasn't be able to mine again when China mined most of the BTC. So it's not surprising it went down. But a lot of these miners went somewhere else and so BTC's price looks better now.

Not because bitcoin disagree with the idea of a famous influencer, even though it has a very large amount of money, which does not mean that the market does not care about it. We can compare the price of a currency or asset to a ship traveling across the vast ocean. The more it became massive the more it will become more harder to manuever. So let's expect that every turn of it will not take effect immediately unless everyone really agrees about it.

I guess what elon said, or what Chinda did surely made an impact for bitcoin, even for a bit. For those who don't really understand bitcoin, and only buying it because of those crypto influencer, they will follow what elon musk said and sold their bitcoin, thinking that when elon said something bad, the price will fall again and they will lose their money. Thus, since we can't deny that there are quite many people getting into this cryptocurrency world because of the influencers, of course if they all sold their bitcoin at the same time, the price will fall. Some people might get affected with China banning bitcoin as well. But, there are people who take this as opportunity as well, when the price decreases or when it's low, people believing in bitcoin will take the chance to buy btc when it's cheap and add up their investment, as long as the demand is still there, the price will still go up. Especially when the price is low, many people want to buy bitcoin, so in the end it will go up again.

Those actions had their influence on BTC. But market is pretty hard to understand. And i think that whales have big influence on BTC too. They can drop it's price to buy even more later. And also they can help to pump the price to sell it high while they can.

I would not dismiss them completely. They do influence people, how many is the question. It is also safer for traders to follow the sentiment of the market, which is why if there is a huge pump or dump, they'll likely follow it. It's not like we can just ignore when BTC gets a heavy correction, and there's no guarantee for future performance either.

This is where long-term and short-term trader/investor differs imo. A long-term investor believes in the value of Bitcoin, while short-term investors are just here for short-term profits. They will exit the market, while long-term believers will see this as an opportunity to buy. As long as you manage your risk properly, it should be fine.

Bitcoin prices are always rising on the basis of supply and demand. Bitcoin's decentralization feature, its security system, and its limited supply have led to a steady increase in its users.
By every Bitcoin halving event, miner rewards are reduced and the new bitcoin production is also declined. It is natural that the price will gradually increase as the supply is less than the demand.

Though the price is growing naturally, but some good reasons which help price boosting:

The first step was to break $14,000 resistances,
Bitcoin's resistance was $14,000 during 2019-20, several attempts were made to break this resistance throughout the year,
but it was finally able to break in December 2020. This was the first step in raising the price of Bitcoin. as a result of which a
large number of investors began to join the group, the initial target of all was the previous ATH $20K.

The inflation rate is another reason for growing the price,
According to BGFRS, Inflation rate of the U.S. dollar is growing continuously. The purchasing power of the dollar is declining
at a significant rate every year. People were desperate to store their money in a safe haven. that's why many investors choose
bitcoin as a safe haven asset.

Adoption of Bitcoin,
From the end of 2020, Bitcoin adoption has been growing larger. significant numbers of online platforms adopted bitcoin as a
payment method. Due to its high price and the fact that many investors and celebrities are publicly involved with it, various
online and offline shops accept Bitcoin as a payment method. As a result, giant money transfer companies and online payment
gateway PayPal adopted Bitcoin.

Institutional Investment,
Bitcoin has received a huge response at the institutional level after mid-January, 2021. MicroStrategy, Square inc, Grayscale-
Bitcoin Trust, Tesla Inc. different big companies like this started converting their cash into bitcoin. Institutional level Bitcoin's
accessibility was a milestone. It helped a lot to grow the total market capitalization.

Bitcoin Production cost,
As the popularity of Bitcoin grows, so does the number of miners. and as the mining difficulty increases, so does the production cost
of Bitcoin. As a result, even at the institutional level, bitcoin had to be bought from miners at a high price.

Online trader & Crypto exchange,
The role of online traders and exchanges was not less. Crypto exchanges and online traders have a wide range of social activities
and social conferences for bitcoin adoption. As a result of the well-crafted speculation of traders and their promotion, many investors
are associated with Bitcoin from the stock market.

---

Everything was going smoothly, so what was the reason for the sudden dump to $29k from $64k?
A sudden dump just happened because of Elon Musk said mining bitcoin is not eco-friendly? or it just happened cause china banned bitcoin?

If the dump happened for these reasons, then why the market is pumping now, and growing smoothly again?  As far as I know, none of them withdrew their statements!

Doesn't the current market strategy prove that bitcoin does not care about these influences?
The fall of the market was only due to the unpleasant condition of the miners. and the market has become smoother again as miners are relocating their firms?