There are 7 reasons for the sharp decline in the Bitcoin price and other cryptocurrencies during the past week. Last week, Bitcoin lost more than $ 7,000. After having seen a record increase in recent weeks approached him from the level of 20 thousand dollars.
The reasons for the sharp decline in the Bitcoin price
1 – The festive season
Because of the approaching the end of the year and the festive season. which is reflected in the fall on all financial markets. As it is a period for investors to profit and liquidate their portfolios. This is what happened with Bitcoin.
2 – Bubble obsession
Bubble obsession” is the term used by all opponents of Bitcoin and cryptocurrency. Which created a kind of confusion about the future of cryptocurrency and Bitcoin specifically. Wherever this name appears on the scene, markets begin to be confused.
3 – Great breakthroughs
The great breakthroughs that have been exposed to some of the large sites of Bitcoin trading platforms. Which has created a state of permanent concern among cryptocurrency traders. The site, “Nice Hash”, which works in the field of mining Bitcoin. A recent 7-minute breakout resulted in losses of $ 70 million.
4 – Legal Situation
Is that cryptocurrencies in general still have difficulty finding a legal and legislative framework for work. Coinciding with statements on the currency leads to a sense of fear and caution in the trader. In a CNN report last Friday, the network pointed out that a South Korean currency trading platform was forced to close last week after being attacked by pirates in a few months.
These incidents raised questions about the reliability of cryptocurrency markets not regulated by governments or central banks, the network said.
Despite some of the above, some argue that Bitcoin takes a break. Even if the decline is significant after the activity that occurred during 2017.
Bitcoin rose from under $ 1,000 at the beginning of the year to $ 20,000 on Sunday. Amidst record big jumps and record numbers during the year.
5 – Whales market
According to a recent report by Bloomberg, 1,000 investors in the market own 40% of the currency. Allowing them to change things and instill fear and anxiety to drive investors to sell as quickly as possible.
6 – Subtract Bitcoin Cash in The platform “Coin Base”
The introduction of the currency of Bitcoin Cash on the platform “coin base” – a currency other than Bitcoin. Caused some confusion in the cryptocurrency market. Especially with the stop of the site several hours and stop selling and buying it. Leading to a lot of negative speculation about the digital currency.
7 – The time cycle for Bitcoin Between up and down
The time cycle that occurs every 3 months, which the Wall Street Journal has talked about.