Bitcoin Forum

Is this a common occurrence for cryptocurrencies?
Bitcoin= sound money

Yes that is a common and normal behaviour for anything traded in the market and governed by the forces of demand and supply. If you check the commodity market, energy market and even stock market, they do the same which is go up and down. If there is more demand than supply, price goes up and when reverse is the case, price goes down.

For Bitcoin, you are encouraged to hold because by the nature of Bitcoin, even though it drop in price, it will always recover and give you profit. Remember that the total supply is fixed at 21,000,000 Bitcoin which means as the world population increases and the supply remain fixed, the demand will surely outweigh the supply which will see the price going exponentially up as time progresses.

Totally normal. Who doesn’t love waking up to your portfolio either mooning or being nuked into oblivion? Sleep tight!

 It's normal for cryptocurrencies but not all of them that experience volatility are able to pick up. Some of them experience a dip and that's the end for them but Bitcoin is not just the best digital currency to invest your money on, it has proven it isn't just a bubble.
Other means of exchange that is traded do have their ups and downs but what'd most important is how they perform when they get back up.

Bitcoin market is lively 24/7 and if you know it, you will not say it usually drops or rises overnight because it is not enough information. It can be overnight hours in your local time but it is possibly day time for people who live in other nations with different time zones.

You will see a clearer picture if you can connect most volatile hours of Bitcoin belong to which nations in that time zone. If you notice it and also lay attention on news and FUD, you will see the USA has kind of connections to Bitcoin most volatile hours which can be overnight hours in your nation and local time.

Why do you sometimes want some snacks at midnight? ;)

The market is ever-changing, and there are sometimes short-term and mid-term events that may shape it in its wake - then we return back to where we were or started.

So the drop from $117,740 to $116,000 is dRaSTiC?

That's a small drop, around 1.5%. Bitcoin ever had suffered 10x bigger than this in a day, yet it still survive until now. You might be a new with Bitcoin, check the price graph and you will see a big plunge and also a huge rise.

I search on google, the definition of sound money I got. Bitcoin isn't a sound money because it's not backed by government.

What do you mean by 'overnight' drops, don't forget that we all don't live in your timezone.

You should add more details to your post, what drop are you talking about that is so concerning, BTC is still above $118k, are you trying to spread fud? If you are scared of 'overnight' drops, try holding BTC in the day, and then sell to fiat at night, and on you go, lol.

Your claim is partially correct, as it does not happen on bigger exchanges, but does happen on smaller ones.
It's just whale games on liquidity. Lower liquidity makes it easier to forcefully liquidate leveraged positions that are held overnight (particularly US nighttime as most of the liquidity usually comes from US traders).

Overnight liquidity grabs are common on the recently launched ByBit EU, but pretty much unheard of on Binance for example.

Yeah, I didn't get it too.

I think OP needs to get more info in the relative threads to come up with conclusions from his original post.

It doesn't and if you try to trace such patterns in futures trading you'll end up burned.

It's best not to try and pattern trade with BTC on any occasion because put simply nobody really knows where it's going to go next. And any pattern noticed becomes useless once many people start trading it because it's a really easy setup to take notice and try to liquidate others. Whales do that routinely.

Is it worth it? I don't think. Most people don't realize how useless patterns are for trading.

Smart money doesn't move where we want it - but where the profit lies.

And we usually can't do the same ;D

When prices suddenly increase, have you ever asked yourself the question to find the answer?
Price fluctuations over a short period of time are how the market works.

Bitcoin = Sound Money?
Bitcoin doesn't have a voice, but people have a voice in Bitcoin.
Bitcoin's voice is the voice of freedom, unaffected by third parties. It's not like a politician's voice. Today they say A, tomorrow A turns into Z.

You complained about the overnight drop in Bitcoin price. Would you also complain when Bitcoin skyrockets overnight? The overnight decrease and increase in Bitcoin price are normal to see. You shouldn't begin to feel bad or complain bitterly about such when the market is volatile(fluctuates up and down). Don't you know about such happenings before starting your investment journey in Bitcoin?

Bitcoin price pumps and dips anytime of the day and not only overnight. I feel that your timezone is why you feel that it's always in the middle hours of the night. However, volatility is the nature of cryptocurrency and fundamental analysis and investors sentiment can come up anytime and thay will affect the market.

Forget about what's happening in the market because they are irresistible and keep stacking more sats for the future without planning to time the market.

I don't think this is what the OP probably meant. This is a common expression in some countries. "Overnight" means very quickly or suddenly, and it doesn't mean it only happens over night.

In any case, this is very common for Bitcoin and other cryptocurrencies, where volatility is the dominant feature. It's quite normal to see multiple price spikes and falls within the same day or even within hours.

You supposed to mention your country time zone. Your night time may be the evening or morning in some countries.

When bitcoin fell yesterday, it was in the evening in my country. I mean when it fell below $116000 yesterday. But the price increased back in the midnight and increased more at dusk.

There are times that bitcoin will fall during the day and also overnight. So what you said is strange to me and it is not correct.

There weren't spikes bigger than around 2-3% in the recent days, so I wouldn't think it's the case for BTC.

It wouldn't be that big without the rally fully halting.

Because it's basically the free market, which operates 24 hours a day, 7 days a week, with no borders…

And because anything can happen during these hours.

Literally.

Yea that's right, some of those pump and dump shit don't recover once they dip although those are not even good projects in the first place,  but is beautifully created that's why sometimes I wonder why some people complain about the price drop, price drop in Bitcoin is normal, if didn't start today and I don't think it will end anytime soon, the reason for upsurge and price dip of Bitcoin is a result of volatility, so knowing this, it means that the existence of Bitcoin so tied to this volatility, I stop it here.

If you invest in Bitcoin 0.009/BTC once a month count a year 12x you only get 0.108/BTC You buy no market effect and you sell everything also does not affect the market.

Bitcoin boom adoption in large quantities such as those done by leading companies 3000/BTC tonight Bitcoin prices can rise dramatically and hold one day off to the market on a large scale 3000/btc overnight the price of bitcoin can drop dramatically, that's how the market works.

Yeah, overnight drops in Bitcoin are pretty common. Crypto trades 24/7, so stuff can move fast while you're sleeping. A lot of it comes down to low liquidity, big players moving funds, or leverage wipeouts triggering a chain reaction. It’s just part of the deal with Bitcoin and crypto in general. Quite volatile, but that’s also what makes it exciting.

I still don’t understand what OP was on about decreasing price in the middle of night, bitcoin doesn’t have time zone it is trading 24/7 and this is the first time I have seen someone complain or talk about drops in the night,

The usual predictions I have seen in the past is about bitcoin having lower liquidity during weekend because most people do not trade much but even this claim wasn’t true in my opinion. There were weekends where heavy pumps had happened in the past.

Bitcoin is tradable 24/7 and there is no specific time about when there some certain trends of the market. Market can pump and dump anytime of the day

Overnight?.. You should know that your  night time is some people's daytime  :), the market is always active and moving in both directions , the reason you don't seem to  notice that much difference in the day time is probably you check more often which is different  from your nighttime.. the price you checked before you sleep is what you would register for long hours and the difference could be surprising if you wake up if it's  dropped drastically.. Still doesn't  make too much sense though, Bitcoin price moves in both direction, yes we could have some long Dips attimes but that doesn't  mean we can't  have massive pumps (in very short interval of time, could be hours) perhaps it's  just coincidence  you experience the tops before sleeping.

Often times it is caused by longs getting liquidated. When there aren't enough shorts to cover all the long payouts,
market makers will come in to "fix" the problem, the longs get liquidated and price dumps.

The opposite happens when the short side is top heavy, market makers rush in creating a short squeeze that sends the price upward.
Which is basically why playing with leverage is a bad idea either way, but fools never learn. There is no such thing as a free lunch.

People's greed will get the best of them.

Yes, it's common for any currency or asset that is essentially tradable in a free market, no central authority to approve anything, which operates 24 hours a day, 7 days a week, irreversible (can't later change your mind on a purchase or sale), can be traded in small fractions, immediate transfer to new owner, and tradable from anywhere in the world using your digital device. If you could trade gold, real estate, etc. in the same way as bitcoins as described, their prices would be equally volatile.

There may be many reasons behind the decline in Bitcoin overnight, but one of the main reasons for the present is to issue Trump's tariffs. Although it did not flow in the beginning, a large amount of Bitcoin is flowing over 24 hours and the price has dropped. Another reason is that the top Bitcoin holders in the world are the most Bitcoin transactions in the world and I think it also plays a bad situation for Market. Moreover, the market had a huge impact for Bitcoin's extra instability and proceeded towards the fall. Because when Bitcoin pumps more and more, those donations are not stable most of the time and down overnight.

Sure, drastic overnight drops is possible in Bitcoin and other cryptocurrencies. The market is 24/7, it is highly speculating and less liquid than traditional assets, making it more vulnerable to unplanned swings. A big sell-off from a large holder, emergency news or alarm sale can trigger fast drops.
It's volatility does not suggest Bitcoin is not sound money, it reflect its early stage adoption and the heartfelt character of traders. As the market grows and more long-term holders take over, the price swings may become less extreme.

Bitcoin has no closing bell besides,the market psychology is never the same.It's normal for Bitcoin to experience several market fluctuations and factors like the general financial instability trigger the market overnight and cause Bitcoin to drop.Everything happens faster without Caution.

Stock markets have fixed timings but crypto markets do not have so, anything happening throughout the world will influence the bitcoin market, one nuance that you get used to once you have been watching the market for years.

I really dont find it anything problematic, let the price rise and fall, you should be more interested whether it is reaching your buy/sell point. So just place orders on your exchange and leave it till it get completed. It might happen overnight, it might not.

You cant just take all the stress and still sleep soundly. Let the market be.

Significant declines are certainly commonplace for us Bitcoin holders, but if there's a decline, it means something is happening on a global economic scale, affecting the price. Even when the Fed raises interest rates, the Bitcoin market usually experiences a decline.

It's honestly not normal, but we accept it because it's how we've profited from Bitcoin so far. Without a decline, there's no backlash and it's not reaching an all-time high.

This is due to volatility Bitcoin is as an asset is volatile plus some external factors can affects crypto currency especially Bitcoin but this should not be a problem to anyone who has tracked the historical price movement of Bitcoin so far Bitcoin always hit a all time high when ever it drops in price this is why most Bitcoin enthusiast will say that Volatility helps in price correction this means that the volatile nature of Bitcoin actually has a positive effect on the overall price of Bitcoin

Right from time, bitcoin price is something I know very that haven't be stable  for period of one year, the price is rotational almost every time, and it take more advantage by revolving to the positive point of it, I know that if bitcoin price falls maybe it's on a correctional value, so I know very well that bitcoin price never be stable, it's goes up and down, which I don't really need or wants, so if you wants to invest on bitcoin do not because of the price falling at all cost and you take a decision not to invest in Bitcoin, the increase in bitcoin is not equivalent to the decrease, any falls of bitcoin is advantages to people, and we have in mind that bitcoin will continue to be increasing

It's normal for investors to take profit once they hit their targets, whether as collective action or as single whales. Whenever that happens, price must drop. It doesn't matter whether it's Bitcoin or not. Since Bitcoin is the rave of the moment, eyes are on it and every dip is easily caught. Now, here's where it gets interesting. Not every dump in price is caused by genuine drop in demand but by the manipulative activities of whales and market manipulators. That's why we ought to pay attention to the season we're in. Anyone who sells now because there's a dump in Bitcoin price doesn't understand what's happening. They've been played by whales.

Yes.
Bitcoin sound money and these drops overnight are very normal happenings in the market. And whenever it drops a lot, you'd see the domino fall because the altcoins market are also following. So the reason for this is simple, Bitcoin is highly volatile and that's why it moves a lot from time to time but sometimes, it doesn't move at all for a couple of days. But when it does, expect that it's only two of it, either up or down.

That's how the market works, and I believe it is also common in cryptocurrency for many reasons. First, for me, the reason is having 24/7 availability to trade; unlike the stock market, there are only specific trading hours you can trade.
Another thing is that the Bitcoin market cap, market cap could still be a factor, especiallya  few years back, where we can see strong volatility comparedto  these days. I'm curious what will happen to the volatility if market cap of Bitcoin will multiply in the future.

I agree, when this kind of market is open 24/7/365 then there will be a lot of volatility. As no one sleeps here, when the others side of the world is resting, then us are awake an continue to trade and so it's a continues flow of money, billions of dollars are traded. We have heard that there is this argument that market cap is not that important. But we all know that it's like a trigger for the market. Whether price of Bitcoin is going down or up. So for me it is still considered a gauge as how dominant Bitcoin is and will remain like that. And if the question that why Bitcoin drops overnight, then wait for how Bitcoin goes as well. And that is very evident in the bull run that we have right now. Although there is a slight drop, we are still very confident that we will make a huge run and go to another all time high in the following months.

I don't know if you are new to this market or not but based on your account it looks like you are new to the forum.


It can be said that your question is the kind of basic knowledge that any investor needs to know before entering the market. So if you don't understand why the price is dropping so much and you are not ready for that, you are not ready to invest in bitcoin.

As many others have explained, Bitcoin is a financial market and is considered the riskiest market because of its high volatility. If we want to earn high profits and get rich quick, the price we have to pay is high volatility and high risk. You can't expect bitcoin price to skyrocket and give you huge profits, and it will never be dumped. So if you are someone who doesn't like roller coasters and doesn't like high volatility then bitcoin and cryptocurrencies are not for you.

Bingo. I think what we're dealing with here is an issue of English being a second language and a misunderstanding of a common English language idiom.

This misunderstanding is repeated  throughout the thread by people who don't realize it has nothing to do with day or night.

Why are you surprised? Bitcoin has always been highly volatile. Hopefully, you didn’t panic with that drop because if you’ve been around in the early days, you would’ve seen even bigger crashes, ones that made people think the whole market was done for. If you’re holding long-term, you’ve got to keep that conviction strong. This is just normal price movement. Only weak hands fold under pressure… are you one of them?

It is normal for the price of bitcoin to decrease at night or day time because buyers and sellers are the major causing of the increase and decrease of the price of bitcoin, you can see what happened last week that makes the price of bitcoin to decrease to touch $113, but doesn't mean the price will not increase higher before the end of this new month because the price of bitcoin is unpredictable in the crypto space and you need to always get prepared either to buy bitcoin and hold or release bitcoin for sell to earn income, bitcoin is a decentralized asset you can hold for long term to make the dream of your price to come to reality before you can sell to take huge income, whatever that is happening now in the market, just have it in mind that bearish season is very close to take over the bullish and it will take a long years before people will see bullish season again.

Yes, that's right. I noticed that too.
More than one member understood the expression "overnight" to mean "at night" or "all night" when the actual meaning has nothing to do with night.

It's difficult to correct everyone.

Over time, those who are new to investing in Bitcoin will learn a lot about how the market moves, allowing them to manage their emotions more steadily when the price undergoes a correction. Even gold, which is more stable in value, experiences price declines let alone Bitcoin, which is known for its high volatility.
Currently, Bitcoin is trading at $114K, only slightly corrected from its all time high of $123K, and I agree that this drop is not alarming, as we have witnessed much sharper declines in the past.

You sound so much like a short term trader because those are the people that panic so much over minor correction such as we have noticed in Bitcoin recently. Assuming you are a patient holder, you will realise such price characteristics is normal for Bitcoin and every other asset because they have to make corrections and not move in one direction.

Yeah, that's another feature of the market. While the others are probably sleeping, they'll just wake up to a sudden flash crash that they have never expected. Being open 24/7 could be an advantage to many but not for the others too. But if we're going to analyze and compare that with the stock markets, they've got opening and closing time. If you've been stuck during the closing and you're about to short, you'll have to wait until tomorrow or much worse, at the end of the weekend before you can finally close that short.

It's said that it will be lessened as the supply that's to be mined decreases. But we have no clue on what actually will happen by that time.

there is no point to worry about bitcoin drop in price. and moreover i have not seen bitcoin drop drastically this period maybe you are just misunderstanding it. bitcoin is volatile and its price changes happens as a result of demand and supply so if the supply is higher than the demand of course bitcoin prize will definitely go down. so its a normal thing except you are not familiar to the system. that is while bitcoin is called a volatile asset which means its not stable, it has the characteristic of changing its price at any given time. either it will rise of fall at any given time.

There is no reason to be surprised at op curiosity, it is obvious he is new and might really understand how the system works and it is a major worries with the newbies but however, the recent dip or drop is nothing to actually get worried about because it is not significant to talk about, no one actually knows for sure to what extend Bitcoin could go up when and how, volatility just as we know is Bitcoin nature and it continues provided the existence of Bitcoin so anyone thinking that Bitcoin will only be going up might just lack the basic knowledge about the whole system.

This is only basic and I'm sure he knows that already. What if he mean it when he said overnight? You know, night-time? There must be a reason for it. I know other markets has a closing time but BTC market must be open 24/7 and then people might be trading or selling the most in the night-time or overnight.

It is unpredictable but why you are so positive that we will have an increase before September? Even though we might also have a decline but there can still be times that we will have a recovery. That is only the thing that I can say.

Even a centralized asset can also be hold for a long time. Some are very old that we can also trust them but there might still be difficulties that we might experience from them like we can't withdraw immediately. This may not be experienced in BTC as a decentralized asset/currency. We all have a dream price but it should also be realistic according on the current condition of BTC. In terms of bearish and bullish, this is unpredictable as well.

Maybe Op will be more surprised if they see the price movement of shitcoins that drop even beyond predictions. For those who are new to Bitcoin, it's no wonder they think corrections and minor movements lead to panic thinking.
Not everyone has the goal of holding Bitcoin in a long-term investment plan. But perhaps after seeing some advice, Op will consider staying calm and learning more about Bitcoin.

I would guess that, even if we look at it 24 hour periods, there are DAYS where bitcoin goes down, a lot, in a single day. So that means, 24 hours is the same day for everyone, and it hits it from east to west. Whatever timezone you are in, you have seen bitcoin crash in a single day, and that means you are wondering, why would that happen and not slowly.

The real reason is that shorting. Reason is simple, when you short a lot, that means you earn a lot, but the longs are all broken, to zero, and to pay, they sell their bitcoin automatically, and get USDT instead or whatever they use, which means, when the price goes down, it doubles down actually. First price goes down because someone sold, and then it goes down because long futures are sold too. That makes it double every single time.

And the answer to why Bitcoin often experiences drastic overnight rises? Longing. Why is this a question? Because in the past five days alone, we've seen $15k to sub-13. Then from $15 to $17. Oh but why, Bitcoin markets are just so easy, arent they? ;)

Well this is what you expect more especially this happens when the demands is higher than the supply, so when this can't be balanced the market experience a shift this leading to a decline and drastic drop in price. So I think it's definitely normal to witness this for cryptocurrencies.