[2021-01-12] US Dollar and Coinbase Also Blamed For Bitcoin Sell-Off

[blacky90]

The strenghtening US dollar and technical issues at major crypto exchange Coinbase might be partially blamed for the bitcoin (BTC) crash seen yesterday, according to analysts.

There's something behind every crash of the world's number one crypto, and many become determined to find who and what is to blame. Some believe that one of the factors behind yesterday's price drop to c. USD 30,700 per bitcoin could be the USD.

If "we're really looking for a more cause-and-effect driver to explain [Monday's] pullback, other than the obvious "what goes up must come down" element, it would be [Monday's] uncanny apparent correlation to the US dollar, which bounced hard off her own lows [on Monday]," Mati Greenspan, founder of Quantum Economics, wrote in his newsletter yesterday, adding that stocks and commodities are also softening on the greenback's strength.

Greenspan further added that there is nobody who could "say exactly where it will turn around, or when the pain will end," but to him, this price action seemed "oddly reminiscent of the early 2017 bull market pullbacks."

https://cryptonews.com/news/us-dollar-and-coinbase-also-blamed-for-bitcoin-sell-off-8876.htm

[figmentofmyass]

If "we're really looking for a more cause-and-effect driver to explain [Monday's] pullback, other than the obvious "what goes up must come down" element, it would be [Monday's] uncanny apparent correlation to the US dollar, which bounced hard off her own lows [on Monday]," Mati Greenspan, founder of Quantum Economics, wrote in his newsletter yesterday, adding that stocks and commodities are also softening on the greenback's strength.

i don't buy the dollar explanation. the DXY bounce is not coinciding with a decline in the stock market, and there is also historically a positive correlation between the DXY and bitcoin, not a negative one.

occam's razor: bitcoin just doubled above its 2017 highs. it was due for a correction. blaming the dollar or coinbase is just the media scrambling to explain things in hindsight.

[Harlot]

Everytime Bitcoin's price goes up or down there is something external causing it, at least that's how the media is trying to portray it with the dozens of articles they are creating everytime Bitcoin makes a move. Why don't they just create a real article like the price of Bitcoin gone up to an unbelievable price already that's why a lot of people are already profiting from it not some kind of news about the USD or the US economy becoming stronge or some other bs. At least if they create these kinds of articles they would analyze Bitcoin's technicals first before going to this kind of non-sense.

[freedomno1]

occam's razor: bitcoin just doubled above its 2017 highs. it was due for a correction. blaming the dollar or coinbase is just the media scrambling to explain things in hindsight.

This
It's not really logical to say a price rise of 300% in as many months won't cool down ...

[Darker45]

I guess it was simply a matter of Bitcoin owners selling a good amount of Bitcoin from their portfolios. Speaking of what goes up must also come down, some investors must have thought it best to sell when the price was still on top, well before it comes down. Selling at the ATH must be wiser.

There is no point playing the blaming game here. Bitcoin is always heavily bought and sold every minute of the day around the world. At times, the supply will spike due to some dumping which causes the price to go down. Other than that, the demand is still normally higher than the supply.

[buwaytress]

I was just about to blame Twitter and Facebook for banning people all over. US dollar is too easy a scapegoat, and Coinbase too lazy a target.

What's actually more surprising to me is that the sell off didn't tear away at the $30k floor. And now looks to be notching up a gear or two en route to $40k again.

[NeuroticFish]

Anyone with a tiny bit of understanding for the charts could conclude that it was going up too fast and a correction was bound to happen.
If it was something specific that made the correction happen last Sunday is hard to tell.
Al the rest, especially from the media, is simply noise.

[Kakmakr]

One of the dangers when institutional capital enters small markets like this is the huge price instability it brings to that market. Previously a small amount of Bitcoin whales caused huge price volatility during 2017... but the latest introduction of institutional investments into Bitcoin has caused even bigger price swings.

These speculators inject large amounts of Fiat into the market and they dump those same bitcoins very quickly if there are just a small dip in the price. (most of these companies are used to other commodities, where there are not this much price volatility...so they are jumpy to say the least)   

[bbc.reporter]

Cryptocoin news media sites are inventing macroeconomic connections for the dump, however, there is really none. Can it be only because a group of whales pumped and then later dumped on us?

[Nahratsak]

I do not understand what strengthening of the dollar we are talking about. The dollar is already on the precipice and survives the last decade, if it survives it is obviously with great difficulty and losses in value, the authorities are doing everything for this