Topic: Reason(s) why Bitcoin price dropped (Read 393 times)

When the price of Bitcoin broke through the 20,000 USD mark in December 2020, a large number of investors began to pour into the cryptocurrency market, which once caused some cryptocurrency exchanges to experience stalls or downtime, and traffic on many cryptocurrency trading platforms Both have increased several times. This shows that the main investment force in the market has undergone structural changes, and the former institutional investors have turned to small and medium investors. The salient features of this stage are that the market will experience irrational prosperity, speculation will be stronger, and price fluctuations will be more intense.

It seems that the Bitcoin price has recovered a little bit back to 35.7K USD,after the Sunday/Monday drop.
I'm not sure if this is a bear market coming or just increased price volatility.Perhaps the price will be going up and down between 30K and 40K USD in the next few weeks or months.
The selling pressure was too high at 40K USD so the price can't get enough support coming from the buyers(and HODLers) to stay above 40K and to go to 50K USD.
Anyway,the crypto market is way more interesting in 2020/2021,compared with the boring 2018 and 2019.

The reason is simply because price went up from (previous correction) $27700 up to $42000 and needed a correction. In bitcoin world the corrections sometimes become a lot bigger than they should simply because of the avalanche effect of all the panic sellers that exist in this market. So the correction was from $42000 to $30200 then bounced back up to $35000+.

It's hard to say, it depends on the exchange you are looking at (since different exchange have different number of traders hence different order book density) and the time that you are looking at it (during big changes the order books are usually more packed than during stable times) and the direction you are looking into (for example during big rises and after a big rise the buy order book is less packed than the sell order book).

Right now price is $35699.18 on bitstamp and if you sell 124 BTC price will reach $35400 (-0.83%).
3% drop in the same exchange (ie. reaching $34628) requires selling 405BTC or $14.5 million worth of bitcoin.
Bitstamp is a medium size exchange compared to other bigger ones such as Coinbase.
Keep in mind that this is from only one exchange and also it is ignoring the market reaction which is when an order executes new orders may appear or may disappear at lower/higher prices. Market dynamics is a lot more complicated than this.

We all know Bitcoin is a highly volatile cryptocurrency so sometimes Btc price drops like this but we all witness the big rally in recent time and market correction did not take place as yet so this is just a market correction now it's time to remain positive & patient and today we can notice again improvement in the market.

Being that there is already an expert analysis and prediction that btc price would rise to $50k, i feel this falling will be short lived and the price will catch up again.

i feel, many smart investors will enter the game to buy more of btc, which is in line with the fundamental principle of trading or investing, you buy low and sell high.

However, i believe holding may still be very good because a new ATH will begin soon or in the future.

No! A 100 BTC sell transaction doesn't have the power to bring down the market to such extent! Also no one is apparently sure why the market fell down to 30k level! I take it as a healthy correction which was well envisaged when bitcoin reached its peak. I am calling it healthy because a correction is always good after a strong bull run. It gives the power to make its base stronger and that's exactly what has happened! After falling down to 30k level it came back to 35k level in a single day. Try to learn the signal and opportunities! I invested 2000 USDT at 30k level and well, I am already in profit within less than 24 hours! Try to convert such opportunities into actions and you will never find a reason to complain! Cheers!

A thousand reasons.

The main reason that worries me is that when the coronavirus winter is over...

Greta is coming.

Don't spread FUDs! It isn't a must to sell Bitcoin. Why you are afraid to hold your Bitcoin? You must regret it because the price of Bitcoin will continue to increase. Don't you realize if it is still an uptrend? You are too early selling your Bitcoin, bro.

Who is your friend? He is a trader, an investor, or a forecaster?
I doubt if your friend is panic because he saw his asset value decreasing. Don't follow the suggestion from panicking people.

How do you know it?
Do you have the skills to predict the crypto price future?
Sure, there will be a drop. But when it is? No one really can predict it.

No one khow what happened next with bitcoin.Now in this situation i think everyone should sell bitcoin.My friend suggested me to sell bitcoin.I think bitcoin price will droped in future much and again grow up it's a habbit of bitcoin.

Some said that it was because some miners are liquidating their position, whereas, there also big holders that cashed out. We don't know for sure but this movement is expected. Just a matter of time only to experience this drop. We are not going up forever, but the downward turn, we don't know when. And I guess, this is one of the downward turn here.

I monitor the market, the price of bitcoin is very high this year, maybe it can be said that this year is the highest year for bitcoin prices as long as bitcoin was created, in my opinion bitcoin will go to the top every 4 years like in 2017, 4 years later, to be precise in 2021 the price bitcoin back to the top and now bitcoin price has decreased has bitcoin touched the peak and now bitcoin is starting to fall?
that's just my assumption, if you have another reason you can add it.

Don't really know what and how something like this is caused, although, I believe it was expected after such a bull run. Not only did it hit a new all time high, but also managed to stabilise its price, near the ath.

I found it a great opportunity to buy some BTC, I hope I don't regret it.

The natural laws of trading are always at the pump and dump. So when bitcoin is at its highest price, there will be people who dump it away for profit.
Especially if the bag holder dumps away their  bitcoin, it will create  a deep dump. But  I hope for  disposal this time not too deep. and  bitcoin  can fix
the price back so that the altcoin I hold can come back green and not bleed like it is now.

I don't know the reason but I can think of one, maybe that is because of the on Going correction of the price of it, we all know that when we see a certain coin that is being overbought it will have a correction after all. It is normal in every trade whether it is for stocks, Forex or in crypto. Let us see some indicators if this btc will bounce back after or it will go down continuously and let us meet again after 3yrs kidding aside, I can't even make a precise prediction because I need to see some charts first.

The answer is no news, because no news that stipulates that bitcoin will decrease in price, bitcoin dropping from 41 thousand to 33 thousand is base on the demands of bitcoin lesser than initial demands, so it's very clear that for bitcoin to fall is because of marketcap, because no one regulates market of bitcoin, as it drop's I think any moment from now it will keep on dropping until it get to 23 thousand or 20 thousand before it will be at state of rest, and has no reason for dropping and I believe no one can give actual reason while is falling.

Whales are always there helping to pump the market and also becomes our enemy as a bag holder.
We shouldn't panic and selling our bitcoin, because bitcoin proved itself how the price increase, and even there is a pandemic bitcoin still didn't depend on this or a barrier not to pump up.

I guess the reason is also whales trying to take advantage and get profit early once bull run hits, and if everyone panic sells, it's a time for them to pump again in the market and invested back their money with a lower price while you are a panic seller selling at a lower price.

It's hard to say why the price of bitcoin is falling. It can be related to anything. It's also hard to tell when the price of bitcoin may fall. This's a really hard thing...

All I see is RED today.

I cannot even guess the reason for today's drop. Politics, speculations, you name it.

Selling a 100BTC wouldn't cause a price drop. If you spread it over an hour or two, it may even pass completely unnoticed.
If you don't spread it and depending on the order book depth, it will cause a temporary drop in the particular exchange where you are selling.

From this article, they are not sure if it is the miners or the macro buyers who liquidated huge amount of money - https://www.coindesk.com/bitcoin-plummets-as-miners-sell-inventory-spot-markets-panic
But I believe, someone with huge stash really did liquidate their position as the profit is really clear when btc hits 40k. Even if they bought at 30-32k, they already are in handsome profit. This situation is really forthcoming.