Why does bitcoin crash occasionally?

rye18

newbie

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Quote from: GetOutOfMyLife on January 20, 2018, 08:44:35 AM

So, as many of you are painfully aware, bitcoin crashed around 30% over a couple of days, reportedly due to regulatory pressures in Asia, and a potential ban in China due to energy wastage and tax evasion risks etc. Reports suggest that China contributes as much as 70% of the worldwide hashing power, and yet we only saw a 30% drop.

Source: Report: PBoC Quashes Bitcoin Mining Ban Rumor in China

Furthermore, we saw 30%+ drops in other cryptos, even unminable, non-decentralized ones. So, conspiracy theorists, why do you think bitcoin really suffers these sporadic crashes, could it be large-scale market manipulation? Or is it simply FUD leading to a wide-spread panic selling?

sometimes bitcoin crashes because investors pull out and trying to trade to some new coins.

Remainder

hero member

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Bitcoin crash occasionally I think because bitcoin is volatile and no fix value so this is normal to crypto, we expect this to happen anyway so we must hold our bitcoin during the down or buy it and sell when it rise.

mi56374100

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The price of bitcoin sometimes drops rapidly because too many people want to sell it at the same time. That's because some bitcoin speculators are panicking when they hear or see some negative news about bitcoin.

The price of bitcoins tends to recover in a few months, so I think bitcoin is a long-term investment.

BETAWI

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Looking at the price drop sharply or price crash, I would like to say that it is mainly affected by bad news and high volume of sales for profit taking. On December 2017 to January 2018 we could see that price drop was affected by great sales of bitcoin from btc holders whether to take profit or just to cash their bitcoin for end year to new year party. Besides that bitcoin price will fall down when bad news are suddenly announced that may come from governments banning bitcoin or from social media. As bitcoin lovers or bitcoin holders we should consider it as a normal circle and don't be panic.

laryillary

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Weak hands. There were too many of them, and when the planned dump went, they just started to jump out of the market, afraid to lose the last. In general, cryptorines are not about technical analysis and not about short-term inputs: one simply believes in it, but one believes in the head, understanding technology.

keywordsbadge

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I knew that the price is going to fluctuate as the end of 2017 was too stable to be annoyed

prediction on bush

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Quote from: pixie85 on January 21, 2018, 12:41:00 PM

Usually crashes are the result of manipulation and market being tired of going up. People are starting to have second thoughts and are prone to selling. If at the same time somebody spreads fake news like the one about Korea banning Bitcoin you got yourself a huge selloff.

I strongly agree on your opinion that, usually crashes are the result of manipulation and market being tired of going up. And people are starting to have second thoughts and are prone to selling. And adding also my opinion that, the bitcoin price sometimes goes down quickly because too many people want to sell at the same time, they do that when they are driven by fear. In addition, recently bitcoins prices increased a lot in very small period of time within 1 year bitcoins prices went from $900 to almost $20k so this drop in price was merely because of correction of the bitcoins price. On the otherhand, Bitcoin is still a new product which is still unregulated in some parts of the world and if it is to be used by people without fear we need regulations but the problem is if the people in charge of putting these financial rules.

Just John

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Bitcoin crashes because that is what happens in a market that is this volatile. Bitcoin has never had a stable price which means prices can sway either way and can actually go very low just like the prices can also go very high, all it takes is time.

patispace

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I believe that there are no "occasional crashes". What has been observed are the natural oscillations that can be observed in most markets, although this seems to be maximized in the price of bitcoin given the volatile nature of this emerging market. But I have no doubt that in 2018 the bitcoin market will reach a greater degree of consolidation and we will see a price much less volatile.

Abigale123

newbie

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In fact, this is a normal phenomenon, BTC to be adjusted, I believe the next it will grow up

francesyrus

sr. member

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After bitcoin hit its all time high at almost $18000 last December 15, 2017 some price correction happens. Now bitcoin back to its normal state seeing dumps and pumps for the past weeks. And the whales are now playing it right now thats why you are seeing some crashed on bitcoin and other cryto currency in the market.

flashmark

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According to my understanding BTC crash due to FUD. Whales/Market manipulators distributing fake news to dump the price. Then they buy in the dip and people who feared about the dump sell their BTC with loss.

reymartH

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Regulation can’t stop Bitcoin, but it can stop liquidity entering Bitcoin. If large scale institutional money is restricted from entering cryptocurrencies, then Bitcoin will eventually reach a peak and that will cause a selloff.

Emerge

legendary

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I dont even call it crash. One year ago at this time bitcoin worth 900$, i say this because i am a long term investor.

BountyX

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Quote from: Xester on January 24, 2018, 10:03:41 AM

Quote from: BountyX on January 23, 2018, 07:15:55 PM

Have you ever heard the word "market"? This refers to a context of buyers and sellers, the buyers are convinced that the best thing to do is to buy, the sellers are convinced that the best thing to do is to sell. You wouldn't ask this question when the buyers ("the bulls") are in control and the price explodes to the upside. Well, when the seller ("the bears") get in control, the opposite happens. In cryptos, the swings are very extreme - that's it. But of course, big whales manipulate the market too. This happens in every market.

Very true. Bitcoin can be manipulated by these big players. I am thinking right now if the Chinese government is one of these big players. They always ban bitcoin. By doing this kind of announcement, people will panic and se their bitcoins. Price will go down and they will be able to buy coins.

Chinese Government could be one of the players, and wall street sharks for sure is another one. They control also the mainstream media and when the mainstream media starts a campaign against bitcoin, you can bet that someone there is buying the dips

GetOutOfMyLife

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Safein Community Manager

Quote from: gamechain on January 26, 2018, 01:48:34 AM

Quote from: laowang666 on January 20, 2018, 08:52:08 AM

I think the price reduction of bitcoin is a normal phenomenon, it is a very normal adjustment.
A lot of people saw a lot of falls, and they said they broke, I don't think so, I think of it as a correction, so it's better to go up.

Bitcoin itself may be a very new thing, excessive investment may be bitcoin bubble, which led to misconfiguration of capital.

Doesn't really seem excessive, less than 0.1% of the world is invested in crypto as of now, there is still massive room for growth. I don't think it was the sudden growth that caused this.

gamechain

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Quote from: laowang666 on January 20, 2018, 08:52:08 AM

I think the price reduction of bitcoin is a normal phenomenon, it is a very normal adjustment.
A lot of people saw a lot of falls, and they said they broke, I don't think so, I think of it as a correction, so it's better to go up.

Bitcoin itself may be a very new thing, excessive investment may be bitcoin bubble, which led to misconfiguration of capital.

Thadeous

copper member

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There are opinions that cryptocurrency fluctuations are closely related to CME futures expiration dates.
CME began trading the first Bitcoin futures at the beginning of December.
The first contract expired about a week ago and the initial one will expire 26th of Jan.
So let's see what will happen with crypto market tomorrow.

fulmetal08larz

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It is totally normal in this market cycle that during the first quarter of the year, people will take profit from what they have invested in the past year/s. It just seems like its crashing because of the FUDs that are spreading across the social media and mainstream news but those who knows and truly understands bitcoin and its technology, they won't get affected of this spreading disease to cause panic selling.

redhondaxrm125

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Quote from: GetOutOfMyLife on January 20, 2018, 08:44:35 AM

So, as many of you are painfully aware, bitcoin crashed around 30% over a couple of days, reportedly due to regulatory pressures in Asia, and a potential ban in China due to energy wastage and tax evasion risks etc. Reports suggest that China contributes as much as 70% of the worldwide hashing power, and yet we only saw a 30% drop.

Source: Report: PBoC Quashes Bitcoin Mining Ban Rumor in China

Furthermore, we saw 30%+ drops in other cryptos, even unminable, non-decentralized ones. So, conspiracy theorists, why do you think bitcoin really suffers these sporadic crashes, could it be large-scale market manipulation? Or is it simply FUD leading to a wide-spread panic selling?

well, to be honest i really cannot tell for sure what in the crap's name is truly responsible for all these price drops or corrections(as what others call it) that has been happening the all the crypto currencies present. because obviously no one knows what the truth really is(except for those people behind the market manipulations if there are really market manipulators). the percentage of all the reasons being thought of are completely equal to each other since they all can really be true or completely false. in fact, all these things might be the reasons behind every price drops for all we know.

having said all these, i really think that your guesses and other people's guesses are only as accurate or inaccurate as my guess.

Topic: Why does bitcoin crash occasionally? (Read 812 times)