Topic: Reasons Why Bitcoin Price Drops - page 15. (Read 5323 times)
Many are pointing out the law of supply and demand and some also telling that negative news make the price drop. But I think it should be understood that these two are related. The law of supply and demand has been explained here. When a negative news occur, of course the people will panic and generally speaking, these people will now sell their coins making the "supply in the market" to become bigger and bigger and as the law says, the price will now drop. Same idea happens when there are positive news only that the demand becomes greater thus making the price to rise.
The news about banning of china, considering bitcoin as a fraud those are the fake news that greatly affect the price of BTC. Another thing, the upcoming new hard fork, it will surely affect the price of BTC.
The major reason as towhy btc has been so strong is its increasing adoption and alsopositive news coming from japan and places
reasons:-
1.some statements about banning use of bitcoin in countries like china and some statement by companies such as jp morgan about how bitcoin is not good and safe and all.
2.economically it could be related to demand and supply,low demand decreases price of any item.
3.or maybe introduction of some other strong cryptocurrencies.
1.some statements about banning use of bitcoin in countries like china and some statement by companies such as jp morgan about how bitcoin is not good and safe and all.
2.economically it could be related to demand and supply,low demand decreases price of any item.
3.or maybe introduction of some other strong cryptocurrencies.
I would like to know your opinion on what factors cause the value of Bitcoin to drop. A brief explanation helps.
When buying is at a low rate and selling is in high rate it will affect the bitcoin value because the supply will become greater than demand this is the main factor why bitcoin price drops. This will happen if people selling their bitcoin because of panic and afraid to lost their investment but if people is just continue to hoard the price will become stable or going to be expensive because the supply will become lesser while buying demand is increasing.
Negative news.
Whales.
Whales.
Negative news does not always have a bad effect on the price. There was the news of china banning ICOs which led to a big dip in price however the price gradually rose beyond 5k after that - point to be noted is that the news of south korea cam after this but it did not have much effect on the price. It means that gradually the traders are becoming refractory to the news from the scaremongering and not willing to give in to it.
Whales are one big factor - there are big investors and they manipulate the market.
Yup! not all negative and bad comment news had an impact with bitcoin, but that news had an slight impact with bitcoin that china banning ICO's thing but it just had cause for bitcoin to even increase more and I guess that the price did continue to establish a good and positive vibe about new investors and they are thinking to sure trust their money with bitcoin because of the much fluctuation on it's value.
It always reach it's price drops yearly but that is just the emergence to its skyrocket price always remember that is the life in the digital currency just like alternative coins they reach the point where they have a drop of 20% to 40% to that day but bounce back to its former price the next day, another thing to consider is the selling of the peoples bitcoin the more bitcoins they sell the more the price will decrease, another thing is the banning and bad rumors spreading through out the people.
Negative news.
Whales.
Whales.
Negative news does not always have a bad effect on the price. There was the news of china banning ICOs which led to a big dip in price however the price gradually rose beyond 5k after that - point to be noted is that the news of south korea cam after this but it did not have much effect on the price. It means that gradually the traders are becoming refractory to the news from the scaremongering and not willing to give in to it.
Whales are one big factor - there are big investors and they manipulate the market.
Negative news.
Whales.
Whales.
The main reason right now I would say is regulation unpredictable moves from regulators accross the world. Then this question will be set (expect - 2-3 years) definitely volatility in price will be less
1) Economy performance
2) Government intervention
3) Other cryptocurrencies or ICOs
4) Panic selling
5) Hackers
2) Government intervention
3) Other cryptocurrencies or ICOs
4) Panic selling
5) Hackers
the drops so far have always been two things: corrections and panic.
corrections are a natural course of any market. that whenever price rises, it comes down afterwards. this happens when investors buy bitcoin and as the price goes up they sell to take the profit so it comes down. the corrections are never big. they are small portion of the previous rise. for example price rises $200 then corrects by $10.
panic is another matter, it usually because of manipulation, some fake news, or some exaggerated news and because of what we call "FUD" (fear uncertainty and doubt). and since the market is small and orderbooks of exchanges are not that big, the panic sell causes a bigger drop.
corrections are a natural course of any market. that whenever price rises, it comes down afterwards. this happens when investors buy bitcoin and as the price goes up they sell to take the profit so it comes down. the corrections are never big. they are small portion of the previous rise. for example price rises $200 then corrects by $10.
panic is another matter, it usually because of manipulation, some fake news, or some exaggerated news and because of what we call "FUD" (fear uncertainty and doubt). and since the market is small and orderbooks of exchanges are not that big, the panic sell causes a bigger drop.
I think it's the same with market law.Sellers and buyers affecting bitcoin prices.If many buy the price will rise and if many who sell the price will go down.Yesterday bitcoin prices had dropped dramatically, it's because of panic sell ,
Maybe people sell their bitcoin for bad news about bitcoin.
Maybe people sell their bitcoin for bad news about bitcoin.
I would like to know your opinion on what factors cause the value of Bitcoin to drop. A brief explanation helps.
In simple language it drops because people are not ready to pay the ongoing price of bitcoin they demand for bitcoin at a lower price and if the seller agrees this becomes the new price after dropping down.
It's always linked to some news that creates panic. Like during the 'ICO ban? in China, people started to check out of cryptocurrencies because they were afraid to lose all the money they had made. Try to join slackgroups or telegraph conversations of cryptoprojects, it's the quickest way to get access to those news. the drop never lasts too long though so you're better holding on to your bitcoins 
If you are referring to the recent price slump, there's no clear indication as to what really cause the market to act that way. No negatives news, I can also suspected that a couple of big orders causes this dip, follow by a few who panic. Or maybe investors just cashing it out to make profits to their pocket. However, if you are referring to the previous crash, in September, its main caused was the Chinese banning of ICO's then closing their local exchanges. This really pull back the price and then this big shot Wall Street Jamie Dimon suddenly attacks bitcoin that added fuel to the already volatile market. So the price drop is usually causes by negative news, intentional or unintentional, it really put a lot of pressure for investors and ordinary folks like us.
It's the same reason on why prices go up. Well, primarily, because you're a noobie. When you're here long enough you wouldn't be asking this questions. Just give it a time. Take to time research and read.
I would like to know your opinion on what factors cause the value of Bitcoin to drop. A brief explanation helps.
A lot of factors are affecting the price of bitcoin and when the price starts to drop only one thing I'm thinking, many are starting to sell their bitcoins and that's the reason why the price drops.
Many says that there are whales manipulating the market and it's also in my thought that there are a lot of whales that are playing the market so when the price drops there are whales wants to buy at dip.
in my own opinion, I think the reason why bitcoin drops its value besides being volatile is that because of the bad news that happens in the past days and the fear of the people causes them to sell their bitcoin resulting in the decrease of its value.
When there are a higher quantity of sell orders, in proportion to buy orders on exchanges, the price decreases. That's one of the fundamental metrics traders look at to project whether the price will rise or fall.
The main factor determining the ratio of buyers : sellers on exchanges is the mainstream news. Forks, SEC, china, finance gurus and analysts making predictions. A secondary factor are coordinated attempts to move the price up or down.
Then there are other factors such as seasonal buying associated with christmas and the holidays which often cause the value of bitcoin to peak at the end of the year.
The main factor determining the ratio of buyers : sellers on exchanges is the mainstream news. Forks, SEC, china, finance gurus and analysts making predictions. A secondary factor are coordinated attempts to move the price up or down.
Then there are other factors such as seasonal buying associated with christmas and the holidays which often cause the value of bitcoin to peak at the end of the year.
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