I'm starting to see this trend where people attribute Bitcoin price drops with FUD. But the FUD happening right now is weak in so many ways.
it is a common mistake to think FUD is the reason for the drop. the correct statement is that FUD increased the size of the drop, so you can say it is also happening because of FUD.
in fact this is a pretty funny mistake that some people make, where they try spreading FUD alone and think if they do it, price will fall but we just laugh at them.
what really happens is that the dump is initiated on exchanges and at the same time FUD is being spread to create panic and change the mentality of the investors. in other words to give them more reason to want to sell out of fear. this may simply be out of fear that the news (eg. ban) can cause something terrible with bitcoin or it can simply be because they speculate price will fall because of that news and since they also see the fall itself they act on it too.
1. People just sell. It's not about FUD, it's not about conspiracies. It's just that people just happen to sell all at the same time because they need money for things in real life. Bitcoin isn't in some ideal world. Bitcoin investors aren't just in BTC, they're in the stock markets too. When the stocks do poorly, they have to sell BTC to make ends meet. Also, it's March, things are getting warmer, people want some fun money. Spring is a team of renewal, growth, love, etc.. For any number of reasons, people are selling en masse.
unless you think people are investing their rent in bitcoin, this reason is dumbest thing to sell. for example people don't invest the money they need to buy groceries, pay the bills, ... in something, specially bitcoin. and
investment is not something you liquidate to pay for things in real life unless it is an emergency!
and when other markets like stocks are performing poorly they are going to sell their stocks not to sell other things to make up for their stocks profit loss!
2. The volume or price performance looks glum. Experienced investors look at volume paterns and price performance. They treat bitcoin like a stock, so when stuff looks bad for a long stretch, they just sell to move on. I feel like the January – March drop scared away the new investors who don't know that things will pick up again. They probably decided to be over it.
the volume is still pretty high actually. and those who wanted to go away, have already gone away back when price fell below $10k for the first time.