Bitcoin Forum

The price of cryptocurrencies has been down the last three years in January. What is the reason for this regular dip?

The news was talking about South Korea as the reason this year.

I do not think that there can be any special reason for that, but may be the wrong news in the market can dump the price of crypto currency. Other wise i cannot see any other reason for that.

There are more factors but main is lunar new year in east Asia...I read that 100 billions USD are being spent for this event and people in east Asia withdraw money from crypto....

Looking back at the past charts, there is always a decline in the market during January.  There is no reason to panic and if you believe in the crypto tech and how it can change the world, just hold.

is that what they told you and it's nothing to do with USDT that's being used to pump up Bitcoins !

https://www.youtube.com/watch?v=MwKYbT9MoPE

Maybe lots of people can see that bankers took over here when transactions fees hit a peek of $55
of they have see the network map of banking hubs on the lightning network
https://lnmainnet.gaben.win/

This is not mama and papa banking like we were told, this is international banking within the network
and a lot of people will want nothing to do with it

Just take a look at the market history from previous years at around this time. History tends to repeat itself.

Well i do think it is due to multiple withdrawal of users in their bitcoin account just to have a wonderful christmas and new year celebration. Many supply is being available in the market which causes the price to went down. But just after a few weeks it will still go back to its winning way and move forward. Same with the graph that can be seen we can assure ourselves that it will still grow.

i dont think south koreian news main effect for this price drop, main reason is price correction.in 2017 December BTC price went to $ 20000 then it drop and it is  like bubble .then it bubble collapse and  price came drop .all new member panic and sold all the btc like panic sell.then south korian news came and bug FUD went through the market .  i think BTC price will go us in FEB and match like last year in mid 2018 BTC will reach to $ 20000

Nothing to do with fees going as high as $55 then or USDT all being fake and used to pump Bitcoin price
up then ?

Yeah I know lightning network will save us but have you seen the map https://lnmainnet.gaben.win/

This is not Bob sending coins to Alice, this is banking hubs starting to get connected and are not ready
yet for fee paying customers quite yet

"South Korea"  :D :D :D and it will be Kim from North Korea next week  :D

No wonder after an end-of-year run we had in December, take a step back.

Well I recently saw an article showing that data, with charts from the last 3 years or so, and there was a dip every January, then followed by a very bullish trend. They think it could be related with people exchanging crypto for fiat, in order to buy presents and other expensive things, since it normally happens very close to Christmas and other holidays.

Not saying that this can't be true, but as the article stated, there is simply not enough that, so we can't really rush any conclusions.
Right now, there are plenty of bad news regarding crypto, and that is probably dictating this negative trend (tether possible scam, south korea regulations, exchanges hacks, etc).

As usual, crypto market reacts to fud since it's mainly composed by retail investors, and still have low liquidity. I think all of this will change in the future, and crypto, and specially bitcoin, manages to solve their problems and achieve real adoption.

It is a celebration for the end of the year. They withdrew it to fiat and spend it all to party.  ;D
Who knows?
It happens with bitcoin and other crypto currencies.
It could just be a dump and no other reason at all.
If there is one who will tell it then it is the market but it is hard to monitor every exchange one by one.

I think this might just be a pretty general trend of each year. People try to cash out there deposits for meeting up their expenses this year. FUD is always a great cause of bitcoin falling down continuously but as you see the stats of past years. One thing which is different this time is that the market dominance has fallen upto a great extent this time. Generally in all previous years even with the fall in price we never saw bitcoin's market dominance getting affected. This time it has come down to just 33% and today was yet another correction day for cryptos.

I notice that too, maybe the reason why bitcoin price drop every January is that many people are following the previous graph which makes January as selling month. For if you compare every graph from different years there are some similarities.

Besides making withdrawals and converting to fiat to buy gifts and items for merriments as adduced by posters above (I really don't believe this angle), Bitcoin always dips in January because as the beginning of the year every investor wants to take profit and reinvest in a new project to widen his investment elsewhere. This scenario will repeat itself next Jan also, at least now that btc is getting more popular.

All cryptocurrencies were pumped before the holidays last year and January seems to be the month of correction. It's time for good news to pop up and move the market to the next level. Until then there is plenty of time left to strengthen our portfolios.

Agree. Apart from the point that bitcoin's price is down due to correction another thing is China will be in their vacation starting January till March, probably price may go up from April. China is contributing 75% of crypto market directly or indirectly even though there's a news that China have banned bitcoin transactions.

Last January fees were only $0.10 and transactions fees were livable and we didn't have hub banker take over using the lightning network
and we were not in such a big bubble.

Tulip's had bad weeks to until one day it didn't so was that in the charts too.

I think that the price in December was simply too high.
A correction had to come.
And now that many people have seen that the price of bitcoin moves both ways, it is harder to get up again.
In addition there were some regulations and news about payment service providers stopping to accept bitcoin.

There has been bad news from China and South Korea.
I'm so sad that bitcoin has fallen again today.
I lost a lot of money.

We can really see that the month of January has been very resistance to bitcoin and I really think it is because of the many holidays that we had during the December to January but that is all I can say, maybe because some coins that are just a ponzi have turned the image of bitcoin to a laughing stock for new investors and many in the community have now the fear in a lot of cryptocurrency that can be a possible explanation that I can think about, But it is my own opinion.

Possible reason is that the investors who bought bitcoin at a 10x lower price level last year are still profit taking and could last until March. They are those who have a goal of 1 year for their investment who had a target price of $10k+. The new starting point for 2018 is at $10k level and if good news come like the lightning network implementation and other big corporations utilizing crypto, exponential growth might continue.

I can't tell about the last 2 years, but this year, we have been suffering from a lot of FUD coming South Korea and then their the bitcoin future contracts expiration that has somewhat contributed to the price dipping further. Other says' because of the Chinese New year. Investor's cashing it out to celebrate that holiday.

Well its been a trend for the last 3 years but knowing bitcoin's volatile history, we can't really say for certain if this is a regular dip. Its almost end of the month, I hope things change for the better in February.

No one really knows. But we can all love to speculate:)

My guess is just tax manipulations, and also with a ton of money being pulled out during the holidays definitely has some residual effect on the month of Jan.

Think about your own financial situation. Is Jan ever a massive spending month for anyone in the real world? Hell no! Everyone's pockets are suffering from the massive spending that just took place between Nov and Dec.

Hey these are dead news buddy, Chinese banned in the end of November and straight next to South Korean government made the regulations on using bitcoins and banned ICO in the end of the last year. They have banned the trading site in this month that is only thing right in your answer.

Like last I see many regulations this year too but last February we all noticed the big bumps started from that time to end of November it was bumping more everytime.

Lot's of news have influenced crypto world, many countries have started to accept ot fight crypto world and this crypto field got very hyped in general.

The biggest market for crypto is China. And if I do not remember wrongly in January they have a very large holiday, that is the lunar new year. So almost everybody sells what they have to prepare for the festival. Perhaps that is the reason for the coin price cuts. Besides, almost everyone in the beginning of the year is very short of money, so they sell crypto, which makes the price drop.

If you are noticing the price movements in last 6 months then you will understand the reason behind the price fall. There was a huge rally in the price especially in the last quarter of last year, everyone was buying Bitcoin in a reckless manner but then big whales decided to liquidate their Bitcoin investment and as a part of correction Bitcoin price fell down. I am expecting this chaotic environment to remain like this at least for next couple of months but then we will see the sustainable increase in the price for the rest of the year.

I see on the chart, at the beginning of the year bitcoin always correction. and by mid-year he will rise again .. and maybe for this year will be the same as the previous year. that's just my opinion