Topic: Reason(s) why Bitcoin price dropped (Read 394 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.

The snowball effect.  Some selling which liquidated people who were trading using margin, which dropped it more, which liquidated more etc...

People buying using leverage got liquidated (https://bitcointalksearch.org/topic/2021-01-11-financemagnates-bitcoin-crash-liquidates-262344-traders-5308605 ).

Then people panic. This is and has been a long term hold, not a short term trade.

Honestly, it's not only limited to bitcoin but today was a bloddbath for entire crypto currency market and I smell manipulation by whales as this huge drop cannot be considered as correction rather I would call it as dump and I remember last time in 2018 crypto currency plunged into bearish market the same way.

The bitcoin price cannot rise for a long time without correction and fall. This is the law of the market, the reflection of supply and demand in its price. Bitcoin grew in price, many began to sell it in order to fix profits. Some needed money, while others are selling knowing that after some time it will still fall in price in order to buy it at a low price. So there is nothing surprising in the current fall in bitcoin. The surprise was caused by the long rise in the price of bitcoin without a rate correction.

It's close to impossible that a low order like this could affect the price. You should take a look on bitcoinwisdom... there are bigger orders than this, and each hour thousands and thousands of coins are traded.
this drop could be explained with several information... probably the best one is related the high value reached during these days (actually we are already +80% since the last month!)

Look it is a strategy of this market. Firstly think why we buy bitcoin why we invest thousands of dollar because we want profit. And why we hold for pumping price. Now see when a person had a huge amount of money holding and he saw that he is now in a better profit but the thing is market is stuck at some point. Now if he start to sell he getting his profit. But price is dump. Now here is a plus point that is why price dump is need for those people who wants to invest but the price was too much high. Now if it is in dump now new users can buy and invest. And that person who start to sell his bitcoin at the high price now he can again buy at a cheap price. I hope you understand its a crypto market strategy.

Being in the crypto space for 5 years now, a drop in the price of Bitcoin can not be pinpointed to any specific reasons due to the nature of the crypto market. The decentralized nature of the bitcoin market makes it difficult to understand what is causing the drop in the price of Bitcoin. I will advise you to first monitor and understand the pattern of the market before investing in Bitcoin. You can easily lose capital if you understand the nature of the market.

Binance has the highest liquidation volume ($903.31 million) followed by Huobi ($523.53 million), and Bybit ($494.55 million).
Such a big cash-out could intrigue the snowball effect that caused people to panic-sell as well, it happening on most exchanges, seems like the whales have a connection to selling simultaneously. However, we can judge that the time has come for bitcoin to get corrected, it went on a rally for months and be able to leap from $20k to $40k in 22 days.
The most important thing whether bitcoin could hold its position above $30k or decline to $28k as the lowest level, but bitcoin appears to be recovering above $32k right now.

No. I'm saying that its too bad if you have been holding it while it touches the ATH.  I'm almost sure its going to bounce soon. I'm more bullish than anyone could think here. It's probably testing the weak hands now. The institutional investors are just coming, I don't think they will soon be dumping while there's still covid. Its more unsure in the stock market than on crypto.

is it time to sell?
I don't think some of those people are right to say it now. Currently it is waiting to buy at a deep price. This drastic drop in prices made everyone panic and sold them cheap. I have been out of the market for a long time and it's time to enter the market again and wait for the best price.

Price dumps are time to buy and Pump time to sell. Don't get it reversed.

There are players who are playing with Bitcoin to make the price change. Because of the limited abilities of Bitcoin (block size), it is obsolete. All that is left is playing... at least until Bitcoin does something like the various Bitcoin forks have done.

I would say to buy Bitcoin if you want to play. Wait until it starts on its way back up. Then play, play, play. After all if you bought in when BTC was at a nickle each, you can afford to play, right?

But if you are serious about using it for buying and selling in your regular life, then look at the forks - particularly BCH and BSV. Roger Ver even put out a video lately, that showed how you can exchange Bitcoin, over twitter, without any fees, and how you get your BCH back automatically, after a time, if the recipient doesn't accept it formally. Personally, I don't know how this works, or if it truly works, but if it does, BCH will overcome BTC for everyday use.


The blockchain idea as money is quite new. It took fiat in the US and other countries a long time to become the household exchange base that it has become today. It will take the blockchain idea a long time to catch on as something that can be trusted. If BTC never changes into something that people can use inexpensively, it will fail. There are cheaper things, like forks and altcoins.

I was hoping to find a good reason why this drop and according to telegram discussions it's about Biden delaying the stimulus packages now I don't know how they relate the issue. But some guys are saying it's just that BTC reaches its ATH and overbought again so its now selling time.

Whether this could be the start of bear market or not, there's just no telling whether its happening now. Too bad if you are still holding on though.

I agree, it's time for bitcoin to rest to the basics again. And nothing too serious about taking down the bitcon, so far, political effect, no. it is clear that the wishes of the pope and the miners have been fulfilled. and fling bitcoin from the moon to the earth ..

There are too many factors to consider what is the reason for the sudden drop, some of them believe that it was a whale trying to manipulate the market and others say it was just because of the keep increasing of legitimacy assets which is the more big investors to come to the more governments tend to regulate Bitcoin because of the high value on it.

There's no specific amount that when we know when the market moves upon the Bitcoin moving into a different wallet or in exchange.  
However, despite the sadness we have because of a Bitcoin price drop, we can now grab the opportunity to accumulate more while the market was in a short correction.

Hello
I do think the reason for the price drop is normal people who sold their bitcoins they waited long enough in the queue to encash their bitcoins and now with a 40k price border it was indeed a perfect opportunity.

They were aware that just like in 2018 the price will go back and they will have to wait.

There are always a low amount of holders and these are the people who made sure that the price is stable till 30k. Other than that it was people who cannot hold for a very long time.
People just panic sold.
Onto the other question:
There are 21 million Bitcoins mined.
About 20% are lost
So 1.68 million are in the market.
Now percentage of power that 100 BTC will have is :
100/1.68 million* 30,000
Which would be considerably low to consider in the first place.
100/1680000*30,000
This would be the price fluctuation they can cause In the whole pool.
Not that significant.

Till now no proper answer or solution has been present to the people if you browse through current news.
But the price drop is caused due to the price itself.
According to my knowledge as when BTC price increased people were unable to buy it , and for this reason the demand of the coin became less.
As the demand went down, the supply became more and for this the price also went down.
These are just my predictions and i am saying from about my knowledge.
Let’s see what true colors Bitcoins will show us in future.

in my opinion this is reasonable, because since the price of Bitcoin has increased and made a new ATH price, we have not seen the price of Bitcoin make a correction (continue to increase), so it's normal if now the price of Bitcoin is corrected, but I am sure after that the price of Bitcoin will start to increase again and now is our opportunity to buy Bitcoin, because I believe we will get profit from investing in Bitcoin at this time.

There was a massive liquidation yesterday which brought the price down then comes panic seller's, this is surely not a correction looks like the downfall has started. Now big whales will start to play in the market also the price of alts too started to fall again as it's still dependent on BTC so anything is possible now.

https://u.today/24-billion-worth-of-bitcoin-ethereum-xrp-and-other-coins-liquidated-in-one-day

In the words of Bob Geldof:

I don't like Mondays.

No one is sure of the price fall. Anything happening associated with bitcoin will be connected with the market. As the market is manipulative any form of transaction will cause market crash as well as rise in the market. Maybe this can be a price correction, which will slowly progress again to make a new ATH. As per the present market situation experts have stated the price to reach atleast $50k, upon which there is more growth incoming after the decline in the market.

Are there any news that triggered the Bitcoin price to drop from $41K to $33K as of now (10am EST 1/11/2021)?

Would a 100 BTC sell transaction causes a 1 to 3% drop in BTC price?  What is the price elasticity for BTC?