Topic: Real Reason Behind Bitcoin’s Price Crash. (Read 329 times)

There are so many negative news coming about bitcoin, that is bitcoin going to be ban. Hereafter the bitcoin price will not increase. These type of news makes people get panic and they are not ready to sell their coins and they hold the coins. And investors are not ready to invest in bitcoin. So dont get panic about the price decreasing surwly the price will increase in future. At that time we cannot able to buy bitcoin becuase the price is high at that time. So now buy bitcoin and hold the coin for future.

With the market fairly spread out internationally now, and liquidity and volume also fairly decent, in what way would you consider it easy to manipulate? I'm saying you're wrong, but I'm curious about what methods you believe are being used? It would probably take some kind of collusion, no?

I thought the tax season was over (?). But I don't think investors are behind the drop, what we've experienced over the last couple of weeks is a downtrend after testing the 9900 + huge btc dumps that seem to happen at random (there are no news or events that could trigger a sell-off) which makes the weak hands panic and sell their btc...with no one buying and a bearish sentiment surrounding the market, it's not surprising to see the price going down every day. But sooner or later these btc dumps will stop and the market will recover its usual upward movement...we just gotta be patient.

re-evaluate your priorities in life, don't depend so much on Bitcoin.

Taxation issue is not an important factor at all. You should always remember the cryptomarket is a highly speculative market that is easy to manipulate by superwhales (institutional investors and large-scale retail traders) in the absence of a proper regulation. All that price volatility is of purely manipulative nature.

People like to make a problem out of nothing. It's not difficult to understand that with MtGox's current fiat reserve they have enough to cover all costs and debt. It makes zero sense for them to keep selling coins that recklessly. On top of that, coins moving out of the MtGox wallet doesn't necessarily mean they are being dumped or sold. It might very well be that they are just relocating some of the coins to different wallets for more overall security. On the other hand, the Japanese authorities might as well just keep these coins in their own reserves, just like how they stock up gold. It would actually be a very smart move if so, and a major breakthrough. I still wonder what happened with Bulgaria's 200,000 BTC bust....

Us Government probe is the main reason for Bitcoin Price cash it Us govt is conducting the probe in all crypto trading platform for suspicious trading activity

It's quite possible that this has played a part in the downturn, but if so it's probably only one of many factors. Regardless of cyclical economic factors like this, the fact of the matter is that 2017 was a wild speculative bonanza with unsustainable growth and the highest levels of public interest ever seen. A blow off was bound to happen at some point. Things like you mention may help trigger the sell offs though, yes.

Obviously US investors alone would not have caused such a huge downtrend, and it was inevitable to have the downtrend or huge correction as the case may be anyway. MtGox actually started more of it, with every other side stuffs like the capital gain whatever, but I am not sure the US investors taking out all their bitcoin into cash would have actually caused such a huge one, and for now, the only thing we actually can point a finger at is the MtGox or maybe not.

If that is the real reason, I will be worrying a lot as he is still holding lots of coins and he may drag down prices somewhat worst levels too or may make prices to range bound between $10k to $7k like this.

I agree with you partially. Not only this is the reason of btc price fall, I think MT gox is also a significant reason of price fall.

I  agree with you and whenever price of bitcoin is coming down we should always look at the order book in other to be able to find out if demands and volume is going down too.  I have tried to predict when bitcoin will get over this bearish market but it seems some people are bend to keep bitcoin below $10,000.

The op had already stated the reason and i think that was legit because he did read it on a well known website. I did beleieve it because the price wont just drop and drop more evenly without a real reason.

  Right now i am a bit worried to see that btc prices are still falling , i am worried that what if one day the value can hit below 1usd? but i cannot just panic also because panicking wont cure these disaease.

Im still hopping and many of us are still hopping that bitcoin can still recover anytime soon because btc is already our life . I cant imagine living without bitcoin , i think im gonna starve to death . Oh lord.

There is no specific reason I think and the price fall is not abnormal. It is general fluctuation which is very common for cryptos. So people are requested to stop spreading FUD and wait with patience.

I don't think that this is the reason.

Let's just assume that the selling off cbitcoins in order to pay capital gains tax theory is actually true. Even if it is true (which I doubt), it's unlikely that so many people would be selling so many coins at the same time to crash prices.

I think that the ultimate reason is that we're just in a bearish sentimented market still, that's all.

The pump was simply brought down by a stronger resistance at the 5 figure mark, along with the fact that the bull market is currently still far away. It's most likely got nothing or very little to do with CGT or whatnot.

Now the market of crypto currency is filled with different types of coins. The market is also seeing the drop of the price, especially the price of the bitcoin is seeing such slow down. Now the haters of bitcoin are spreading rumors about bitcoin. But the investors of the bitcoin need not to be worry soon they will be able to smile.

You are partially correct. But that is not the whole reason behind the price dropping. The cryptocurrency market is always fluctuating and it is always unpredictable. There is no single cause behind the prices dropping.

OP said that the caused of downfall are those people from USA selling their bitcoin to pay their gain tax. But that reason is just a small amount of the total dumps. Maybe the real reason are those whales that riding the issues they dumps his funds to create panic and buyback later when the price is cheaper enough to get his profits.

You must have forgot to include the MtGox dude inexperienced sell off as well to your reasons why the crash came about.

Nevertheless, bitcoin was actually due for it anyway after the last year craziness that was brought about by FOMO and greed but I believe that very soon, bitcoin will actually end up recovering and start taking new turns to the upper side, but when is not what we can actually state or the level at which it is going to go down lower but all you have said, all together added up in a way.

Well the story about Bitcoin tanking due to US capital gain tax was written here in several theads weeks ago if I'm right.
I don't think this is the reason.
Why do people always look for a specific event or reason what made the price decline??
Why not just accept the fact that in the actual market situation the pressure from the sell side is bigger than from the buy side, which is defined as a bear market.

In my opinion, the biggest monkey on BTC back is PoW mining and in the end, it will probably also cause it's demise.
Bitcoin mining sector took in 7billion$ miners revenue. That sum will be taken out of the market system and paid by the people who invest with hopes to sell with a higher price. Now, when there will be less new investments then 7billion$ , then the only place to take this money, will be out of coin value. When the miners are no longer able to get ROI, then they will probably start to accumulate and to take on loans to keep their investments running, with the hope of seeing ROI again in the future.
This last part will make things especially fragile and unpredictable. When those mining companies will be no longer able to sustain themselves, then they can't just turn off equipment and live happily. Large facilities have been purchased, workers employed, equipment bought and creditors befriended. In this scale production, your initial business plan either works or you go bankrupt, as simple as that. If you build a factory and you won't get enough demand to continue production, then there is no pausing your production and continuing in better times. The cost of pausing would just be too high for the risk be worth it. Your creditors will want to pull out, and bankruptcy is the only outcome. And if those bitcoin mining companies will go bankrupt, then their accumulated coin, that expected better times, will be dumped on the markets and the equipment will be auctioned off cheap. This will probably cause the final avalanche, that bitcoin won't be able to survive.

Hardcore bitcoin fanatics will defend PoW by trying to compare it to the costs of banking. You can only try to compare those two if you are trying to deceive others or you are totally ignorant on the subject of finance. These two are as similar and different as a paper plane and a F-22 Jet Fighter. What PoW should be compared to, is PoS or newer hybrid systems. It should be compared how much does PoW cost more then those systems, and is there justification with network security for this much higher costs. To ignore this subject is to ignore the most important part of crypto and this is it's efficiency. People ignore it because Bitcoin has switched from being a financial tech project into a religious group. They take Satoshi's white-paper as the holy word of god and they are caught in it's dogmas. Technological progress has switched with religious fanaticism from people who don't care about the tech part or if bitcoin could be actually used as a practical and efficient tool of finance.

It would help if you share the link here for reference in order for others to believe in you. But you are right, bitcoin's price is market driven. The law of supply and demand is applicable in this area. If the supply is high and no demand then the price will go low.

I am really not sure whether your information is true or not because every day new new topic of price falling is coming. So I really dont know whom to trust. I have just take it as a natural rule of crytpo world because price will not be always high.

It's already influential and of course which's clear is not only that which influences it, there are still many out there that can make it down/crash, and not just in one country only. I think these times are like being in a sad position that will end in the long run, the layman will surely surrender.

if this was true then price of every asset should have fallen each time Americans wanted to pay their taxes! so how do you explain no fall in other markets? and more importantly why are they only selling their bitcoins to pay their taxes and not their golds, stocks, bonds, real estate, .... I'll tell you why because nobody liquidates their investment to pay taxes. specially assets that are full of potential.

I think already some countries are regulating the cryptocurrency but still it was raise in the market. So recent dump is unexpectedly comes in the market and this will not permanent dump again it will raise in the market. Know we must hold for two more months automatically all the coins are going to moon.

Maybe that's the other reason why the bitcoim decreasing price. But they have chance also why the price decreasing is because of the panic seller of the bitcoin or the bad news about bitcoin. There's a lot of other reason why bitcoin down but I hope next month everything will be okay and the price will become stable or it will increasing again the price like what bitcoin reached last year.

What goes up must come down! That is how markets work.We are in the coiling down phase to the floor, probably around 4-5 k, and then consolidation till 2019....bulshi again by 2020. Untill then take a looong holiday as the bear market is here to stay.

Price fluctuation is a common thing for crypto market. But in recent time’s crypto’s price fall down rapidly. I think its occurring because some countries are banned crypto for access. It decreases the crypto’s demand and reason behind price falling.

no because this news belongs to months ago which was the deadline for tax payers to pay their taxes and that was just a speculation that this might happen and price had a little drop by that time and recovered right after.

as soon as the manipulation stops and the whales run out of bitcoin to dump and decided now is the time to buy back what they have been selling.

no, thank you! websites that you find this kind of stuff on are full of shit all the time. don't waste your time on them...

Your mentioned reason of USA people sell Bitcoin to pay tax may be one of the reason and there might be many reasons behind the drop of Bitcoin price. I cannot say anything about that without any substantial data to support but I think the price trend now is not a problem for Bitcoin and it will rise again in coming days because crypto market is always volatile.

Former PayPal CEO says bitcoin is the ‘greatest scam in history’

THE former chief executive of PayPal has slammed bitcoin as the “greatest scam in history” and a “colossal pump-and-dump scheme”.Writing for technology website Recode, Bill Harris said he was tired of describing the cryptocurrency as “speculative”, “gambling” or even a “bubble”. “Okay, I’ll say it: bitcoin is a scam,” he said. “In a pump-and-dump game, promoters ‘pump’ up the price of a security creating a speculative frenzy, then ‘dump’ some of their holdings at artificially high prices. And some cryptocurrencies are pure frauds. Ernst & Young estimates that 10 per cent of the money raised for initial coin offerings [ICOs] has been stolen.”

http://www.news.com.au/finance

Even few months ago the price of bitcoin falls down. to great extent and it started rising up. Right now, it's falling again and it'll rise up again. So, i don't think there's specific reasons behind this. I hope the price will recover very soon.

Yes you must share your reference. I disagree that the only reason for bitcoins price crash is because of USA investors are selling bitcoins to pay capital gains tax . Last week , people claimed MT gox wallet been sold off is the cause and today USA investors . I think there is more to its than a single reason for bitcoin price crash.

It is not the first time when the price of bitcoin fell.  In last year the price touched @20k but later touched very low levels.  The prices were recovering and on one  occasion it crossed $10k but again the price started falling.  The reason given by you that people in USA are selling to pay capital gains tax and so the price falling may be a reason but only one reason can never be effective in up or down of the prices. 
There are so many reasons.  Major role being played by speculators and big rich traders.   Small traders can not cause a dent on the trends.
Larger players always have an unfair advantage over the retail traders as they have the money and the resources to manipulate prices. Many crypto investors have been complaining against the manipulation in the markets, which hurts small investors.
So just be watchful; careful; gain knowledge and experience; put the part of money in t he market which if lost you don't see as everything gone.  Also it is true that we have to take risk if we wish to earn.

In United States, bitcoin investors are selling off their holdings in order to pay their capital gain tax. And it generated a huge of of btc. Besides demand has not be increased on that level. Thus supply increased a lot and not demand as well. And this situation is mainly responsible for the going on market crash.Do you agree with the reason? What is your thinking that how long it would take to recover the market condition. I have got the news from a renowned website. As a newbie, I am not sharing the link here. Do you want the reference?