Topic: What is the most influential factor that triggers bitcoin prices to fall down? - page 18. (Read 2451 times)
January 26, 2018, 12:40:30 PM
Most of the time, prices can be associated with supply and demand, as what's also the case with other traditional tradable assets. In the case of bitcoin, for four straight years now, the price takes a huge hit on the first weeks of January and typically pushes sometime in mid-February onwards. It could be that most traders by this time are trying to diversify their assets or liquidate their profits before starting another run for it. No definite answer but it is very likely that most traders are cashing out for personal expenses or whatnot.
January 26, 2018, 12:36:43 PM
Bitcoin is very volatile. It goes up and down at no time. But I started to think what causes its values to go down. These past few days, its prices are notably lower that last year's values. Last year, I believe, during the first few months, its prices are likewise low. Do bitcoin prices go down every January to February? Does it have a logical association?
Generally, I'd say it's a big sell order that triggers downward momentum. Could be a whale cashing out, could be an investor trying to manipulate markets, or it could be just a lot of people withdrawing from bitcoin because they hear some bad news and go into FUD mode. I don't know if there can be anything said about Bitcoin and the first 2 months of the years. They have been low overall, but I don't think correlation means causation. There probably is a reason for the low values every year. This year it could be the rise of altcoins/governments not really getting into crypto.
January 26, 2018, 12:31:48 PM
Bitcoin is very volatile. It goes up and down at no time. But I started to think what causes its values to go down. These past few days, its prices are notably lower that last year's values. Last year, I believe, during the first few months, its prices are likewise low. Do bitcoin prices go down every January to February? Does it have a logical association?
Price is determined by supply and demand, long term supply is relatively stable so the changes are all due to falls in demand. Short term there are a variety of reasons for the recent slump:
Uncertainty over regulatory changes in South Korea and China
Bitcoin futures expire (today I believe)
Chinese lunar new year
The last one is perhaps the one that you can draw the most on in terms of a recurring pattern. The last 4 years the market has crashed a few weeks in advance of the Chinese Lunar New Year, presumably as people look to sell crypto to fund travel and expenses, it is the single biggest holiday in the world.
There are other reasons you could argue as to why the market crashes each January, other holidays like Christmas would also come in to it, as in January people are generally tight for money many may sell crypto or many may just not be in a position to buy more.
January 26, 2018, 12:00:08 PM
Bitcoin is very volatile. It goes up and down at no time. But I started to think what causes its values to go down. These past few days, its prices are notably lower that last year's values. Last year, I believe, during the first few months, its prices are likewise low. Do bitcoin prices go down every January to February? Does it have a logical association?
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