Topic: Reason for bitcoin - page 2. (Read 313 times)

Bitcoin is an asset, it can appreciate or depreciate, so it should not be strange to you. Last year, the coin depreciated due to many factors, especially inflation and bad news about the companies dealing with cryptos like FTX, and the infestation of hackers among others. If you want to know when to buy and sell Bitcoin, try to get to know how to speculate through the economic and technical means, they will be a good guide for you.

However, some believe in the cycle, I don't, yet you might still inform yourself with another good factor that could cause a much bullish run starting next year in April (Halving).

Your question is funny but if you have really stay on bitcoin for some time you should have figure out something to says to him. Bitcoin is like every other businesses that experience its challenges and mind you nobody says bitcoin can never crash or end some days but the project of bitcoin survive as long as people investment keeps coming and multiplying.

Bitcoin has reason for dropping in volume, let's look out it this scenario's you plant an orange tree with others as shareholders and the oranges begins to produce fruits in large qualities, people start coming in to buy and suck the juicy part of it, some people begins to invest with you so that can calculate returns for them the more the oranges keeps produces fruits. Now is the stands of the oranges keep produce the people support on it the more commercial values but if for any reason people begins to withdraw their investment, maybe the major shareholders begins to pulled out of the business, will the life sperm of the oranges remains the same? Probably NO.

So bitcoin dropping is because most substantial countries like US, China, Nigeria and others are swings against the pumping of bitcoin or the trading to exist legally in their countries. Bitcoin is experiencing low investment power to pump, shareholders have withdrew from it and still kick against it. But the price dropping will never affects the figures values, bitcoin only needs people who have good resources to come in. The higher the volume of bitcoin investment the higher the rising or pumping price, and the lower the investment the lower the pump. And that's most affects everybody especially people with little trading or investment capital.

There is just countless number of reasons that can affect and have affected bitcoin price. There is rarely ever only one reason leading to a drop/crash but there is always certain major reasons contributing to a drop. It is also not only drops, the rises are also the same.

For example one of the reasons that is well known to affect the price is being far away from the intrinsic value. 2 top examples is $20k price in 2017 and $3k price in 2019. Both prices were far from the intrinsic value, $20k above it and $3k below it. Which is why the market reacts "violently" with a crash in 2018 and a huge jump in second half of 2019.
I personally believe that we are currently in a similar situation to 2019 where price is below intrinsic value.

Another major reason affecting bitcoin price is the global economy. Some people naively interpret this as "bitcoin following other markets", for example they mistakenly think that if the stock market crashes, bitcoin should crash too. Which is proven to be wrong.
But when the global economy is bad, like this days where majority of the countries specially in the West are struggling with inflation+recession (in the East there is only inflation without recession) that affects all the markets including bitcoin which is pretty much what we saw in both 2020 and 2022, one being the result of pandemic and the other the result of Russia-NATO conflict.

A best answer is look at Bitcoin history that can explain well for you.

Bitcoin historical corrections from all time highs


Bitcoin Obituaries article on Coindesk used information from 99bitcoins.com.

On 99bitcoins.com, you can pick a year and see fuds in that year. You can use 99bitcoins with the chart from visualcapitalist to check that in the past, around big corrections, what were fuds around those bad times for Bitcoin.

No real reason at all, just fuds.

The reason for the past price drops? Far more people are selling than buying. It's that simple. When that will happen again is a better question, because no one knows.

Bitcoin basically doesn't really have a year it dump what affected it was The Bad Economy and Market sentiment investors where having on it and crypto market as a whole because of the fall of some big exchange like Terra, FTX and others

All depends on the market cycle. It consists of four components: accumulation, advancing, distribution, and declining. When institutions sold their Bitcoins, the price of bitcoin crashed, and we should have expected a significant decline in price. Now that we are aware of the market cycle, we must wait until it has accumulated before making a purchase. It's challenging to determine whether the accumulation starting or whether the decline is still continuing. Knowing how the market cycle operates will prevent you from being a liquidity in the market.

I was thinking about what a friend asked me so I began so confuse about the question and I say let me ask about that since myself don't know may help might come from you people here.

Question: Does bitcoin has year or reason when it drops or crash on like what happened in 2022 alot of us saw hell.so I want to if has reason for the dropping in volume.