Why is the price dropping?

[thesonandheir]

I'll say it once more...
Broken fundamentals and stagnated development.

Broken fundamentals aren't bad if there are people willing to resolve it.
Right now that last part is totally missing within the whole of the bit coin community.


Sure, go ahead and tell everyone it will be fixed when it needs to be. I've debunked that argument over and over. The time to fix what's broken with bitcoin is yesterday rather than today or tomorrow.

No. I mean broken fundamentals and stagnated development can obviously cause value to drop, but fluctuations are normal and if you look at the price of BTC over a 12 month period, a much more logical explanation is that it hit a bubble where speculation drove the price up - either speculation on bitcoin continuing to go up or speculation that a fiat currency might be in trouble.

I suspect the latter, and the fiat currency I think some speculators thought might be in trouble is the Chinese Yuan.

I think the bubble that started a few months ago was caused by increased Chinese demand hedging against their currency, which of course drove the price up for everyone regardless of their currency.

I think the current fluctuations are the value trying to find the balance of where it should be.

I might be wrong but that's what I suspect.

Other than Hearn I haven't personally heard of anyone claiming they are dumping because of broken fundamentals or stagnated development, and Hearn has a conflicting interest.

Great post.

I'm long bitcoin and holding, the drops seem to be orchestrated to me as the price gets dumped in quick fashion and then somebody comes in a hoovers up all the panic-sold coins. It is clearly done to play on peoples fears after the recent events. If it were real panic then you would not see these big dumps, rather a slow and steady drip feed into the market.

I mean really, if you were a whale would you want to drive the price so low that you actually lose money?

[disclaimer201]

In a perfect world Bitcoin would be easier to use, have a better reputation, replace banks, is risk-free to hold. It has achieved none of that and it's ok.

BUT -there comes a point when it has to be decided if it should be open to a mass market, meaning that it would be possible to use for millions of people IF they decided to use it. Bitcoin is not in a crisis but I think it has lost a bit of an opportunity to prepare for a much wider audience in allowing it to scale. If this could happen (and it should sooner rather than late imo) BTC price would shoot up to the sky in summer together with halving and the media hype that can be expected to go along with it. As it looks right now, however, all we can hope for is halving and I expect apart from (mass) psychological reasons an actual effect would not kick in before at least the end of 2016.

I don't know which way is technically feasible but doing nothing is not enough if you want BTC to be the future currency. Centralization is becoming a big issue particularly in respect on who gets to decide if BTC will only be for a small elite or a payment system for the masses. If fees become too high I see actual potential for alternative currencies to take BTC's job but I wouldn't hold my breath for "moon" prices in the near future.

My predictions:

A-Everything stays as is, BTC may stagnate, even go lower, but will slowly go up until the end of the year. Realistically, maybe to $600 by December, more upside in 2017.

B-Scalability will be solved in a way everyone can live with, a buy signal is sent to market, media hype will set in twice. Huge upside potential to ATH, maybe even 2-3k by the end of 2016.

So, no panic. But no revolutionary price increase for 2016 either.

[LuckyYOU]

The bitcoin is very unstable that's the problem of the bitcoin.
I think the unstable bitcoin turns into a bitcoin that will be very stable on a high amount.

[Farma]

The bitcoin is very unstable that's the problem of the bitcoin.
I think the unstable bitcoin turns into a bitcoin that will be very stable on a high amount.

I guess because so many people have bitcoin bitcoin selling them at low prices so as to make the price of bitcoin be dropped quickly

[arbitrage]

Trend is up after long time! Don't worry at all.
Watch bitcoinwisdom, buy a beer and try to relax..

[lexuz]

The bitcoin is very unstable that's the problem of the bitcoin.
I think the unstable bitcoin turns into a bitcoin that will be very stable on a high amount.

that's why too many people interested to invest in bitcoin and if bitcoin price stable i think investor not want to invest their money in bitcoin. so you must enjoy every moment when price up and price coming down.

[n691309]

The bitcoin price is dropping probably because there has been created a new debate about bitcoin core classic which confuses the miners a bit to move or not.

[Denker]

Trend is up after long time! Don't worry at all.
Watch bitcoinwisdom, buy a beer and try to relax..

If you're in for the long haul it shouldn't matter you what the price is doing at the moment.Hodlers should as you said just relax and sit it out.There will always be booms and busts, up and downs.This is how the market works.As long as you believe that over a longer period of time Bitcoin will be sucessful and therefore rise in value there should be nothing to be worried about.But very often people become greedy and therefore are overinvested. And then in situations like the actual one plus the new blocksize debate and the classic attempt of a fork, some people get scared, start to panic and are doing silly and dumb things with their coins.

[randy8777]

The bitcoin price is dropping probably because there has been created a new debate about bitcoin core classic which confuses the miners a bit to move or not.

nah. i think all this is done purely to put some pressure on the bitcoin core devs to step up their game and release the update the majority of the community is waiting for. people are tired of this endless drama about the alternatives that look out to be used as main client. most of the chinese miners are standing firm behind bitcoin core. says enough....

[arbitrage]

Question is how will you used this situation in your own good?
Will you start panic or be calm and hold, and you will be awarded..

[madonnino]

The bitcoin price is dropping probably because there has been created a new debate about bitcoin core classic which confuses the miners a bit to move or not.

i don't see such a drop, remember few months ago when we was in 220 /250$? what i see is a "stable" price for bitcoin (10-15 $ it's not a problem imo for bitcoin price to get panic)

[1Referee]

Question is how will you used this situation in your own good?
Will you start panic or be calm and hold, and you will be awarded..

Very simple. Buy or trade. When I see the price is dropping and other people are panic selling, that's when I start to get excited. It allows me to do some very profitable day trading. Volatility is good.

[lottery248]

people are not panic to sell bitcoins for now, thus the bitcoin price is stable. meaning your logic at this moment is invalid.
back when the Mike left from the bitcoin development, it affected the bitcoin price by range decrease of ~$50. numbers of people gone jelly on losses.

[Pollak]

Its now good to buy you mean. If the price is now dropping then the chance is higher that it is worth more later.
So you should just see their advantage reduced the price.

[rekinthis]

Is there something big going on? I'm asking because if it's just a hype thing (like the Mike Hearn thing) this would be a good time to buy. Otherwise I don't know

sometimes it's hype thing like you say, a massive panic when everyone starts to sell their coins, sometimes it's because person who have a lot of coins decides to sell them, that drops price too, and of course dumps, also there might be just random days when price falls by couple of $

[bit1]

BTC is strong even it is resisting certain circumstances in the market.

[LoyceV]

An increase leads to more people buying, a decrease leads to more people selling. So whatever happens, it gives itself positive feedback to accelerate the process.
Speculation and normal variation. Nobody knows what the future will bring, as with any investment/gamble/buy.

[romero121]

BTC is strong even it is resisting certain circumstances in the market.

Yeah bitcoin had crossed various critical situations. Resisting the market situation is not a big deal for Bitcoin. Everyday the fluctuations in price is also considered panicking which is regularly resisted by bitcoins growth.

[quadriple7]

Is there something big going on? I'm asking because if it's just a hype thing (like the Mike Hearn thing) this would be a good time to buy. Otherwise I don't know

recent price fall was yes, because of Mike and his dumb words, he created a panic, so price fell really fast and really low, and of course it would be awesome time to buy since price is high right now, just you would take risk if price would fall to 140$ or less, since bitcoin could die

[bitlancr]

Is there something big going on? I'm asking because if it's just a hype thing (like the Mike Hearn thing) this would be a good time to buy. Otherwise I don't know

recent price fall was yes, because of Mike and his dumb words, he created a panic, so price fell really fast and really low, and of course it would be awesome time to buy since price is high right now, just you would take risk if price would fall to 140$ or less, since bitcoin could die

The last 2 events were caused by Mike Hearn and coinbase CEO's but the other decline had no reason as to why it was falling.
I guess it is manipulated speculation. In the world of bitcon this is perfectly normal.