Topic: Why is the price of BTC dropping? (Read 548 times)

In recent times, Ukraine-Russia war has been affecting the whole world in various ways, especially the crisis of food, fuel, oil and gas. Inflation is rising in every country for this reason there is a kind of stagnation in all financial platforms. The crypto market is no exception. On the other If we look at the long-term bull market, we can expect the bearish market is coming soon. However, it can be said that if there is a market bearish for long time, everyone is confirmed that we are very closed to Bull market which can beyond all records of btcoin history.

Bitcoin’s price drop may be due to consensus changes。From its invention in 2009, Bitcoin rose to $69,000 in the 11 years to 2021. The reason for the increase is on the one hand because the mining output is halved every four years; on the other hand, because more and more people know and agree with the concept of Bitcoin decentralization. Every time the price of bitcoin rises and falls behind, there will be a group of new people who understand and agree with the concept of bitcoin. This has led to a growing consensus on Bitcoin and decentralization, and more people participating in Bitcoin and other cryptocurrencies, gradually pushing up the price of Bitcoin. From 2020 to 2021, after rising to $69,000, Bitcoin has been widely recognized, and the number of people participating in Bitcoin transactions has also reached a peak. At this time, the sharp rise and fall of Bitcoin prices can no longer attract more attention. At the same time, two factors have profoundly affected the consensus on Bitcoin and cryptocurrencies.
1.Bitcoin is centrally held. Few people hold more than 1 bitcoin, and as the price rises, most people can't afford bitcoin. This leads to doubts about bitcoin: So expensive and hard to come by, does it really have real value? People who hold little or no bitcoins will answer this question based on their own interests, tend to think that they do not, and will not buy bitcoins; people with many bitcoins will say yes, but they will wait for the bitcoin they already have to appreciate rather than buy bitcoin at a higher price. Therefore, Bitcoin lacks the momentum to rise. When the driving force of price increases is exhausted, price drop is inevitable.
2.It is obvious that in the more than ten years since Satoshi Nakamoto invented Bitcoin, although there have been many innovations in the field of cryptocurrency, there is a lack of practical applications that can break through the field of cryptocurrency and penetrate into daily life on a large scale. Aside from the huge increase in transaction prices, ordinary people outside the cryptocurrency space rarely feel that Bitcoin and cryptocurrencies have changed their actual lives. In other words, Bitcoin still relies on the innovation of Satoshi Nakamoto, and its achievements and practical significance have not been widely used and recognized. Doubts and shakes of Bitcoin are thus generated. If the doubts about the real value of Bitcoin cannot be eliminated and the consensus on the value of Bitcoin cannot be generated, then the decline in the price of Bitcoin will not end. This Bitcoin price drop is the first time in Bitcoin’s history that the price has dropped along with a consensus decline. Although it has fallen by more than 70%, it has experienced more severe declines in the past decade or so. But this price drop is still unusual. In the past, every time the price of Bitcoin fell, it was accompanied by a rise in value consensus. This time it was the opposite. Although the Bitcoin price drop was suspended at around $20,000, there is no sign of a consensus on the value of bitcoin. As a result, the price of Bitcoin may fall again, and may not return above $20,000 until consensus is restored.
It has been more than ten years since Bitcoin was invented. Bitcoin needs to be practically used and needs to be developed and innovated, otherwise it will also be abandoned by the times. I wrote an article: "Consensus, Risks and Benefits:Ledger-BasedDecentralized Organizations", which describes a scenario in which Bitcoin is used in real life, and accounts are recorded during use,In the consensus ledger, the ledger is continuously updated with the consensus, and risks and benefits are spread to each row of the ledger. When the consensus, risks and benefits recorded in the books are balanced, multiple decentralized and seemingly fragmented activities will form a flexible, efficient and powerful overall activity.

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I personally think the answer is simple because many are selling bitcoin. and that influences people to sell bitcoins due to economic problems. because right now the world economy is in a downturn, so they sell it. and in my opinion because of the more and more crypto other than bitcoin? it affects the price of bitcoin. because many people are turning to crypto other than bitcoin. so automatically there must be a decrease. and also because of the economic crisis many big investors are selling bitcoins. and also among them the cause of bitcoin's decline due to the covid 19 pandemic.

There are many factors that can either directly or indirectly affect Bitcoin's price. It could be the current Russia-Ukraine crisis, insider manipulation, or simply FUD by the mainstream media and other entities. What matters here is not the price of a Bitcoin, but rather its usefulness as a censorship-resistant medium of exchange. As long as the pioneer cryptocurrency works as intended, nothing else matters. People just have to learn how to live with Bitcoin's volatility in order to get the most out of it.

With how successful Bitcoin's been since day one, I'm certain it'll reach a higher price within the not-so-distant future. We need to be patient in order to achieve great results in the long run. Just my opinion

This is why trading is so difficult to master, after all we could say that all the movements in the price of bitcoin can be explained by the supply and demand, and while simplistic it is the truth, however when we consider that both of those concepts are the aggregate of millions of people moving their capital under their own understanding of the market, then it is easy to see how it is impossible to create a system that is 100% accurate and to give more specific reasons about why the market moves the way it does.

To proof this point to the OP and newbie traders, bitcoin was at low price when this topic was created and the people sentiments were down as people were anticipating more crash in bitcoins. But now after two week, bitcoin prices are quite high and are sustaining near the resistance which shows that market could take a reversal from here.
This shows that bitcoin market never moves in a straight line, it may dump along the way. We never know, we might see another drop in bitcoin prices before reaching 50K.

There is no market that only increases without decreasing, it is like a country's economy will have growth and recession depending on a lot of objective factors.
Market correction is no surprise, everything goes as predicted bitcoin hits ATH in 2021 then falls is evident.
Moreover, bitcoin is a long-term investment you should not be too worried when its price drops in the short term. Look at the future, bitcoin is brighter than what you see now.

Yes, in fact the world event that is taking place for now between Russia and Ukraine is what they call in the books as a "Fundamental" and it is a double-edged sword, because if the war escalates it will start and investors will panic and something that I have always known is that in every speculative market when fundamentals occur, emotions are activated and emotions are the reason why speculative markets move, emotions and whales responding to the Law of Supply and Demand, in I am not operating in my case because I am not sure what could happen, so it is a total risk for me, I prefer to be in Hodl mode.

@OP, that market is positively moving up but never ask why as the answer could be the same. Nobody knows exactly.

We can just blame the whales either and not even because of the FUD.

We ended up just speculating and guessing why it happens, honestly as Bitcoin will be in the zigzag motion even before and we can have this scenario forever. So, the best thing we do is to get calm as this is very understandable, and this is not surprising, it drops today but it pumps back again in a few days.

that's the major event that we are seeing right now as a contributor on what's happening in the market. but there are actually other factors that are influencing this movement. the growing adoption of users and merchants is also one. how about countries that are going positive towards crypto? so what am saying here is that we can't really attribute the market performance in only one event or factor here, as you mentioned also, it is combination of several events and we can't quantify the degree of their contribution to this market.

The price of Bitcoin can be attributed to several things happening at the moment. Take the war between Ukraine and Russia which has led to highly fluctuating market trends globally. In addition, the bull run seems to be over so market is currently having a general correction as expected. Hopefully we can bounce back pretty hard after June.

Yes, investors look pessimistic. Market's fluctuations show this with its very low pumps that immediately are reverted once they happen. But at least bitcoin is somehow stable...

That is it. Bitcoin is very likely suffering for this reason. It's the possibility making more sense for me. Money goes where the opportunity looks more interesting for the investor, which can be found by calculating the correct proportion between risk and profitability.

A good advice, indeed. Bitcoin is a long term invesment, moreover investors shouldn't fear the future or panic sell their coins at this moment. Let's keep in mind crypto market works on its own time, that is different from the time we, investors, would like to see bitcoin's marketcap skyrocketing.

What happens is that even if there is a lot of people that have moved forward and understood the nature of the markets as their experience as traders or investors went up, not everyone has the same level of experience, every month a lot of newbies join this market and this forum and for the most part they do not understand how the markets work at all, which is why we see so many newbies asking the same questions over and over again, despite those questions having been answered many times before.

The OP seems to have little understanding of how crypto works. The market is usually driven by speculation, so anything big or small can have a profound effect over crypto prices. I believe that the reason BTC's price is dropping is because of the on-going COVID-19 pandemic and Russia-Ukraine crisis. Investors are fearful these days, cashing out stocks and crypto in order to survive in these uncertain times. Hype has faded temporarily as people are focused on other mainstream events.

Instead of complaining, I suggest the OP to buy BTC while it's still "cheap". The world's largest-cryptocurrency by market cap will be valued at a higher price in the future with every block reward halving. Subsequent network upgrades focused on scalability and privacy will only make Bitcoin bigger, better, and stronger than ever. Bitcoin may never go back to these prices as it becomes "scarcer" over time. Newbies only want to get rich quick, so the moment they see prices falling is the moment they think it's the end of the world. A pity since they'll be missing an opportunity of a lifetime towards achieving massive wealth. Remember, patience is the key here. As long as you're patient, you'll be able to achieve great results in the future. Just my opinion

Not directly , but when there is a policy or certain rules set in a country where crypto investor , crypto business giant come from and growing really fast plus that rules/policies does really support the crypto ecosystem then i think it is... has a significant impact.

For instance

'President Joe Biden on Wednesday signed an executive order directing agencies across the federal government to coordinate efforts to regulate cryptocurrencies and other digital assets.'

This trigger uncertainity , whether should you sell it for a while or bag more before it's too late?
We are in that kind phase currently so yeah that's why it gets dropping.

 think those who would worried and sell at the current price of Bitcoin would be wrong. My personal guess is that Bitcoin will soon return to its former state. Don't worry, wait patiently. Presumably, Bitcoin will give a lot in the future.

Its happen when someone become much greedy and wanna get profit on each investment which is never possible in any trading platform .Its a normal behave of the market to go through on ups and downs .Crypto is a high volatile market so that you can easily see the recover progress on here .On the other hand if it falls every time how could it hit on ATH .So its not dropping only ,Its increase as well .I am totally agree with you that it is very much normal to drop and it is also very much normal to go up .A good trader never ask about to drop always cause he knows its a normal process .So that we have to aware on this that it will fall and also it will recover for sure .

If you ask why the price of btc went down, and what caused the price of btc to go down, personally I certainly won't be able to answer your question in detail, but if we look at the facts, yes, I can give an explanation, maybe because of the market, maybe because of the influence of billionaires , but an answer like that is not concrete, but I have a principle I will never be afraid of a decrease in the price of bitcoin, because I invested in bitcoin for a long time, so I just relax.

What do you mean by "Are there provisions put in place to curtail this downward spiral" is Bitcoin some Government-issued assets that should be rescued by some policies to boost up the price? and this is the nature of the market. You should know that since the inception of Bitcoin back in 2009, it has actually been on a Bull run and still is if you look at it or haven't you seen the chart?