Bitcoin Forum

Hello,
Why falling prices happened? Is it going on?

Thank you.

The best answer I could give you is that there are more people willing to cash out (sell) than buy. You will read news like bans, regulations, lawsuits, or whatever that could cause fear, uncertainty, and doubt (FUD) but everything comes down to supply and demand.

It happens more often than you could think of. We see shakeouts even on a bullrun.

Pretty normal just like how it bitcoin arise 10-15% in just several hours.

But this time its unclear, from the fud of money laundering , the drop of hashrate of bitcoin due to blackout on some province in china where miners are located, and some from shorters who are affected of fomo.

In any healthy market, price corrections are normal. I wouldn't be worried about anything because it's the reality in markets. If more people are selling than those buying, then the market price of the asset is most likely to drop. If more people are buying than those selling, then the market price of the asset is most likely to increase.

Nobody has control over the market. The rise and fall of a coin depending on the demand for that particular coin. If there's no much demand for a coin there won't be value (it diminishes in price gradually) of the said coin.
Although the market seems unpredictable to predict what happens next. A coin can surge 10-20% in a few hours and also decline in price before the end of the day.

It's normal if the price is starting to fall after a consecutive pump for a short period of time because there are people who make trades in order to gain profit and there are also people that think there's a correction that will follow after the pump since Bitcoin is in a bullish trend for a months.

We called them weak-hands because they can't hodl Bitcoin that for long after they've accumulated a certain amount of Bitcoin then recently dump after seeing a new pump that makes a new ATH. Well, we can't actually blame them because they also want to gain some profit so it's our choice to make if we want to sell or hodl.

Remember the rule of supply and demand. The more the demand that the market is currenty having, expect that the price will eventuallly go down, on the otherhand, when there is short in demand (or people are selling their bitcoins for what ever reasons they have). Whales are big players in the market, if they did sell lots of their bitcoins, it can affect the market price of it.

What's important to note is that no one really knows the exact reason behind these crashes; all we can really do is speculate.

That being said, there are a couple of factors in play which could have led or exacerbated the drops:

• A tweet went "viral" saying the US will crack down on crypto money laundering (https://www.cnbc.com/2021/04/18/bitcoin-plunges-from-recent-high-as-cryptocurrencies-take-weekend-hit.html)
• Accidents in China has affected big mining farms and dropped the hashrate (https://www.theblockcrypto.com/linked/101866/xinjiang-coal-mine-bitcoins-hash-rate)
• New massive ATH could have caused a simple pullback

IMO it's just the last one plus that price couldn't break out above the next resistance and it pulled back a little. The rest of the drama were only putting fuel in the dropping price and led to a dump by market manipulators and eventually ended with a panic sell crashing the price bigger than usual, although the total drop size was still a small 10% drop.

Thank you so much.