Why does bitcoin crash occasionally? - page 3.

notyours

sr. member

Activity: 462

Merit: 250

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?

I think bitcoin crashes occasionally due to the economic status of a country. If the economy of a certain country is healthy a lot of new investors would pursue their interest in bitcoin that might affect the demand in the currency that later on cause an increase in its price. On the contrary, when the economy is sick or low, the probability of a certain person to engage towards bitcoin is cut-off. They would rather use the money for their daily needs due to high price in the marketplaces than starve just to invest in it.

tigermonkey

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It is normal for crypto market to have wild ride (up and down). FUD and speculation are factors...

bitcoinzen

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no body say why bitcoin is increasing rapidly every one want profits but when it comes down everybody losses their mind well it is market need correction often to see new highes

armansolis593

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

-snip-
could it be large-scale market manipulation?

Yeah, a few days ago bitcoin was averaging at $12k after their pump it is now down to $10k again, this is probably due to the whales that has been manipulating the market for their own gains.

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

Or is it simply FUD leading to a wide-spread panic selling?

It has also some effect on small scale traders because they cant really compete with the big traders they only go with the trend that whales decide.
FUD can really spread fear when your budget in the market is low, cant blame the small traders as they only want to profit on what ever they can hold.

ranman09

full member

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This is probably because of the FUD from korea, Chinese banning miners and the super high transaction fee of bitcoin. Hope core developers take into account micro-users that doesnt have that big money to use bitcoin.

Balkany

newbie

Activity: 3

Merit: 0

Do you think btc can fall more or it's the good time to buy for a short term buy/sell?

faceoff97

full member

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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?

This already happened late of 2017, we have seen how bitcoin value was affected due to reported news related to China banning of ICO. Tgere is no denying that China takes a large role in the changes of price for bitcoin basically because there is a large market people in the country. Though China may manipulate the value, they cant still have the full control over it and make it totally dump. There arr still large number of people around tge world whose into it.

An attempt from China before succeed to decline the price, but luckily bitcoin showed that its price not dependent on a country. In tact ita value was regain ang and hit even harder.

RodneyKings

full member

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It crashes so small fry investors are able to buy BTC at a price they can afford Grin

For those who've been in crypto for quite a while now seems to enjoy crashes like this too as it gives them opportunity to top up and add additional coins in their portfolio.

Trivelius

sr. member

Activity: 344

Merit: 250

Quote from: Yamifoud on January 22, 2018, 10:02:21 AM

Quote from: Kittygalore on January 22, 2018, 09:36:19 AM

Although bitcoin couldn't be manipulated by any private sector, its value can be. This is called Market Manipulation. A group of people will decide wether this productnwill increase in price or it would be decreased. Then bam, they have now manipulated the market based on their own hypotheses and inferrences.

To much people involve in here, and with that Market Manipulation it seems to be true. It really affect the entire crypto, as they continue doing this, it makes people moving out from crypto which is not good. We make this market grow not by killing it, maybe we should keep helping each others to make this new form currency to succeed.

I think we cannot consider it as crash, It was just a correction and now we can see that bitcoin price is trading in a very stable mood and hope that very soon bitcoin will once again get its accelerator and very soon its price will cross 30000$, we just need to remaid as calm and cofident and should not sell sell our bitcoin in panic.

Yamifoud

hero member

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Quote from: Kittygalore on January 22, 2018, 09:36:19 AM

Although bitcoin couldn't be manipulated by any private sector, its value can be. This is called Market Manipulation. A group of people will decide wether this productnwill increase in price or it would be decreased. Then bam, they have now manipulated the market based on their own hypotheses and inferrences.

To much people involve in here, and with that Market Manipulation it seems to be true. It really affect the entire crypto, as they continue doing this, it makes people moving out from crypto which is not good. We make this market grow not by killing it, maybe we should keep helping each others to make this new form currency to succeed.

GetOutOfMyLife

full member

Activity: 210

Merit: 110

Safein Community Manager

A lot of people mentioning FUD, but who are the people driving this? What are their motives? Are the whales somehow collaborating to crash the market so they can buy back in lower?

unsquidly

member

Activity: 322

Merit: 10

There are two major reasons which I know of through the price crash of BTC occurs and they are
* News and FRUD
* Corrections

CryptikEnigma

full member

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We touched the second bottom, 8-9k is too unrealistic, 10340 was a low on bittrex today so now im waiting for a rebound.. im happy my buy order at 10500 was filled!

Kittygalore

member

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Merit: 63

Although bitcoin couldn't be manipulated by any private sector, its value can be. This is called Market Manipulation. A group of people will decide wether this productnwill increase in price or it would be decreased. Then bam, they have now manipulated the market based on their own hypotheses and inferrences.

BrBoy

full member

Activity: 453

Merit: 100

Anything below 8k will be catastrophic. But, I believe if it goes to 8k, it will be there for a split second and then BAM! the much needed correction is done and she will bounce up so fast you can then truly call it the lighting network.

There's a lot of anticipation to buy at 8k though so will be hard to catch - I'll be happy if I can grab some below 9500.

Don't worry fellas, like Htl says, this correction is healthy and needed for further growth.

BitcoinHodler

hero member

Activity: 1456

Merit: 579

HODLing is an art, not just a word...

maybe we need to change the meaning of "crash" first before starting to talk about bitcoin. i mean there is nothing else like bitcoin (at least not that many other markets) so the comparison is impossible. what we call big drop most of the times is simply daily fluctuations of price. for example the $1000 that goes up and down these days!

and the same way the "crash" is a simple market correction most of the times and then it is followed by the large number of newbies panic selling.

Xester

hero member

Activity: 994

Merit: 544

Quote from: kdiag on January 22, 2018, 08:08:27 AM

The rise and fall of the btc occurred constantly, the Whales use influence on the course, as well as the upcoming Chinese holidays on the eve...
Everything will soon normalize and the market will grow after february.

Chinese are always part of the bitcoin crash. They always announced that they are banning bitcoin. Also the crash was a result of the big players. They hold big amount of bitcoin and they can control or manipulate the price of it in favor of them. Always in favor of them.

aizen10

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like what you said OP "it simply FUD leading to a wide-spread panic selling" because 5% of bitcoin holders/investors are newbie in this industry so it is very normal that this newbie sell all of their bitcoin when they see that they are losing money by the dip which is not recommend to do as a trader. and in addition, bitcoin investors are switching to altcoin just to make more profits after a massive effect of bitcoin dip to altcoins. this is just all my opinion.

kdiag

full member

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Merit: 100

The rise and fall of the btc occurred constantly, the Whales use influence on the course, as well as the upcoming Chinese holidays on the eve...
Everything will soon normalize and the market will grow after february.

mOgliE

legendary

Activity: 1344

Merit: 1251

Hi,

I think both can be explanatory.

I mean, the Asian bitcoin community is large so whether it is a manipulation from the Chinese government, or an over-reaction of the involved market once the news is out... Both lead to the exact same result. So actually, it is hard to say... and quite uninteresting because both phenomenon are completely out of reach of individuals.

Then, regarding the bitcoin generally, I would say that there are so many factors and so many people involved here, that it is completely impossible to build any accurate model.

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