Topic: Why does bitcoin crash occasionally? - page 2. (Read 812 times)

A 40% pullback seems excessive even in the midst of the negative news as of late. There may be some deeper manipulation going on.

Maybe an unexpected wide selling panic but I do not think that this is kind of an intentional activities. Since bitcoin is decentralized the biggest company or group could make an intentional crash. This crashes could possibly the root of recent news that south korea bans bitcoin and about Japan's and China's regulatory woop such news probably drive people in panic for them to buy and sell bitcoin to get the hell out of such crashes.

All coins crash for numerous reasons ranging from normal pullbacks, to deep corrections resulting from negative market sentiment or bad news.... Eitherway, they are all part of Bitcoin's overall growth and success.

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.  

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

das einzige Bitcoin-Dienstprogramm. Viele nutzen es als Wertaufbewahrungsmittel oder als spekulative Anlage. Und für diese Transaktion sind die Kosten nicht so wichtig.
Natürlich, da dies ein unregulierter Markt ist, Manipulation mit FUD (mit Nachrichten, mit hoch glaubwürdigem Spam oder Negativismus in Foren)

And now we see bitcoin recovering again from this crash? Is it due to the Korean new tax rules, or something else entirely?

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.

The problem with the news, is that it tends to focus on the negative aspects, bad news spreads faster than good news, and that is a problem when it comes to bitcoin and other promising altcoins.

There are different scenarios on where bitcoins value is falling depending on the season. Sometimes there is a hype on the coin and the value is keep on increasing because the supply will also last, there is also an incident last year where ico's are banned in china but still cyrptocurrency manage to increase its value and reach 10k dollar before 2018 starts.

I strongly agree on your 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. And in most cases that fear is triggered by news that indicate problems on the market of crypto currencies. And adding also my opinion that, it usually crashes because the result of manipulation and market being tired of going up. People are starting to have second thoughts and are prone to selling. In addition, I think it's a mix of both of those things (market manipulation and fud). Although the cryptomarketcap looks huge to the common people, the truth is that those values are quite small, if we compare them to the marketcap of stocks, gold, or any other solid assets.

In my opinion its easy to say that when people are greedy and buying bitcoin which drive the price upwards, then it will be the best time for the whales to gaining profits. We've seen a huge increase of bitcoin in a few months and its just a normal investment advice that when people become greedy, then we should avoid it. And people start to feel insecure and FUD began entering the market pshycology, then its the time to entry and looking for cheap coins. Basically regulatory pressures are normal thing when people start to acknowledge something, some will try to take benefit of it or even try to control it.   

This week’s Bitcoin crash was all about fraud and regulation.
Cryptocurrencies have had a rough week: the value of bitcoin plunged to a mere 50 percent of its 2017 peak, and other currencies, such as Ethereum, Ripple, and Litecoin have seen double-digit losses compared to their heights from last year. Tuesday also witnessed the collapse of BitConnect, an anonymously operated crypto exchange that had been repeatedly accused of running a Ponzi scheme via its proprietary BCC currency.
Taken together, these events may simply act as another reminder of the “volatility” of the cryptocurrency market, which saw bitcoin rise to a peak of $19,783 on December 17th. Bitcoin has gone through multiple crashes before: in spring 2011, in November 2013, and in January 2017. However, this current bubble comes against a new backdrop: a global tide of regulation against the inchoate cryptocurrency industry. On one hand, these regulations may be scaring bitcoin investors into selling their coins now before the full impact of regulation makes itself felt. On the other, it may also be threatening suspect exchanges such as BitConnect, with its own token declining in value by 46 percent between December 17th and January 15th — the day before it announced its closure.. interesting times!

bitcoin has a nature of volatility, any untoward incidents and mislead information regarding crypto currency create chain reaction that measure the stability of the coins, i think that is one of the reason why it crash occasionally

Here not a single factor affecting the bitcoin market to go up and down , specially here our discussion is targated over the dump in the market price of the bitcoin .
Here we can see that every time a negative news enter in the bitcoin market and gave a big impact regarding the trust that most of the people have with the bitcoin and that results into panic to have bitcoin in bulk .
Here recently a big factor that is running in the bitcoin market is that taxation rules that will government take from the Bitcoin users ( even bitcoin is not legalised ) and also government is taking all the old statement of used bitcoin amount.
So people are thinking that bitcoin will no more remain like that which was easy to earn and make profit ( newbie like thinking ) .

MM also create artificial FUD that cause panic sell could also be another factor

It is normal for bitcoin to crash because the market of bitcoin is very vulnerable to that since the market is decentralized and there is no regulation that is happening in bitcoin so it is so easy to think for the possible reason why does bitcoin crash occasionally. If there is a bad news then it will be a huge negative effect on bitcoin like what is happening right now.

I do not see it as a crash. Bitcoin itself very strong in cryptocurrencies. I would say a market correction rather than crash. Market can not move non stop in the same direction. Correction was due because market rose very aggressively in the past 2-3 months. It's a normal behavior of market. We can not expect always bullish market. I hope soon market will be stable.

That crashes are not sporadic or occasional.
I know that we all desire bitcoin to be higher and higher, but there are a lot of decreasing factors an people who play down.
And it's clear, that market depend on news, and I hear only bad news last time (from India and China mostly).