Reasons Why Bitcoin Price Drops

[M05J]

I would like to know your opinion on what factors cause the value of Bitcoin to drop. A brief explanation helps.

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[Bob_trades]

The Law of Supply and Demand in Econimics. When of supply is greater than demand, the value of the product drops. Same with Bitcoin, when the number of sellers is greater than the number of buyers in a trade, the tendency is the price of it will be pulled down.

Major occurrences like the banning by China caused traders to give up their positions and that affected the price.

[SlaughterGirl]

I have an opinion that the causes of BTC prices are down:
some people make negative issues like what JP Morgan did.
in addition, some technical and network improvements can make BTC prices fall.
like hardfork in last agusutus.

[kpcian]

From my observation is that, Some negative news that affects people that is why those people want to withdraw their money from this platform. like in recent time, China government wanted to regulate the ICO then most of the Chinese people have left their Bitcoin so that the price of Bitcoin went down. I believe that only negative news and uncertainty are the main reason for dropping the price.

[bitbunnny]

In this case that happened few days ago I wouldn't say there is any particular reason. No some big influence on the market like recent happenings in China, just normal correction/volatility process probably caused only by supply and demand ratio.
It's not necessary always to make deep analysis about price movement, there are not always hidden messages.

[Itty Bitty]

I would like to know your opinion on what factors cause the value of Bitcoin to drop. A brief explanation helps.

ELI5:

There are still many people who have bitcoin who believe that if they send their money on the internet in bitcoin, it might get lost in the wires of the internet and they will lose their money.

There are still many people who believe if all the worlds electricity went out for a few days and the internet went down, then everybody will lose their money.

There are still many people who believe if they send bitcoin, someone will steal it while it's on its way on the internet wires.

People are scared they will lose their money, especially in something so new and hard to fully understand as bitcoin. So at the first sign of danger they pull out.

People who understand the tech and underlying economics better, then buy at cheaper prices. Then it goes up. At least that's the story through Oct. 2017.

[AnthoRAX]

One reason I can see is the truth that transactions are highly untraceable. The governments wants to have records of their people's transactions especially when it comes to income. Digital currencies', especially Bitcoin, transactions are not governed by tax laws of any nation and that is the reason why some countries look for ways to control it. This results to traders giving up their positions thus lowering the digital currency prices like Bitcoin.

[maku]

One reason I can see is the truth that transactions are highly untraceable. The governments wants to have records of their people's transactions especially when it comes to income. Digital currencies', especially Bitcoin, transactions are not governed by tax laws of any nation and that is the reason why some countries look for ways to control it. This results to traders giving up their positions thus lowering the digital currency prices like Bitcoin.

Bitcoin market cap is still insignificant in the grand scheme of things. Less than 0.1% of total population of earth is owning Bitcoin.
Do you think that governments would be control freaks to the point to scare people from potentially the best investment of our generation?
Bitcoin can be shut down only if EVERY single country unanimously would outlaw it when one or two insignificant players will ban BTC it won't cause much harm to the whole network.

[allthebitandbobs]

any market including bitcoin is heavily influence   by whales .If the price did not go up and down they wouldn't make as nearly as enough money .

[HelloGarci]

One reason I can see is the truth that transactions are highly untraceable. The governments wants to have records of their people's transactions especially when it comes to income. Digital currencies', especially Bitcoin, transactions are not governed by tax laws of any nation and that is the reason why some countries look for ways to control it. This results to traders giving up their positions thus lowering the digital currency prices like Bitcoin.

Bitcoin market cap is still insignificant in the grand scheme of things. Less than 0.1% of total population of earth is owning Bitcoin.
Do you think that governments would be control freaks to the point to scare people from potentially the best investment of our generation?
Bitcoin can be shut down only if EVERY single country unanimously would outlaw it when one or two insignificant players will ban BTC it won't cause much harm to the whole network.

I totally Agree that IF EVERY single country would outlaw BTC, there is a chance of being shut down. I respect your opinion, but I think he is asking about what causes the drop of bitcoin price and not how Bitcoin will shut down. And bans also do affect prices to drop.

I also like your point on insignificant players that won't cause much harm to the whole network. I strongly believe so too.

My opinion on the topic, in trading, prices always rise and fall
----ToTheMoon----

[Hydrogen]

When there are a higher quantity of sell orders, in proportion to buy orders on exchanges, the price decreases. That's one of the fundamental metrics traders look at to project whether the price will rise or fall.

The main factor determining the ratio of buyers : sellers on exchanges is the mainstream news. Forks, SEC, china, finance gurus and analysts making predictions. A secondary factor are coordinated attempts to move the price up or down.

Then there are other factors such as seasonal buying associated with christmas and the holidays which often cause the value of bitcoin to peak at the end of the year.

[kiddeon123]

in my own opinion, I think the reason why bitcoin drops its value besides being volatile is that because of the bad news that happens in the past days and the fear of the people causes them to sell their bitcoin resulting in the decrease of its value.

[eagleman]

I would like to know your opinion on what factors cause the value of Bitcoin to drop. A brief explanation helps.

A lot of factors are affecting the price of bitcoin and when the price starts to drop only one thing I'm thinking, many are starting to sell their bitcoins and that's the reason why the price drops.


Many says that there are whales manipulating the market and it's also in my thought that there are a lot of whales that are playing the market so when the price drops there are whales wants to buy at dip.

[nappoleon]

It's the same reason on why prices go up. Well, primarily, because you're a noobie. When you're here long enough you wouldn't be asking this questions. Just give it a time. Take to time research and read.

[TravelMug]

If you are referring to the recent price slump, there's no clear indication as to what really cause the market to act that way. No negatives news, I can also suspected that a couple of big orders causes this dip, follow by a few who panic. Or maybe investors just cashing it out to make profits to their pocket. However, if you are referring to the previous crash, in September, its main caused was the Chinese banning of ICO's then closing their local exchanges. This really pull back the price and then this big shot Wall Street Jamie Dimon suddenly attacks bitcoin that added fuel to the already volatile market. So the price drop is usually causes by negative news, intentional or unintentional, it really put a lot of pressure for investors and ordinary folks like us.

[sch_lau]

It's always linked to some news that creates panic. Like during the 'ICO ban? in China, people started to check out of cryptocurrencies because they were afraid to lose all the money they had made. Try to join slackgroups or telegraph conversations of cryptoprojects, it's the quickest way to get access to those news. the drop never lasts too long though so you're better holding on to your bitcoins

[ahmad21]

I would like to know your opinion on what factors cause the value of Bitcoin to drop. A brief explanation helps.

In simple language it drops because people are not ready to pay the ongoing price of bitcoin they demand for bitcoin at a lower price and if the seller agrees this becomes the new price after dropping down.

[Irdina]

I think it's the same with market law.Sellers and buyers affecting bitcoin prices.If many buy the price will rise and if many who sell the price will go down.Yesterday bitcoin prices had dropped dramatically, it's because of panic sell ,
Maybe people sell their bitcoin for bad news about bitcoin.

[Pursuer]

the drops so far have always been two things: corrections and panic.

corrections are a natural course of any market. that whenever price rises, it comes down afterwards. this happens when investors buy bitcoin and as the price goes up they sell to take the profit so it comes down. the corrections are never big. they are small portion of the previous rise. for example price rises $200 then corrects by $10.

panic is another matter, it usually because of manipulation, some fake news, or some exaggerated news and because of what we call "FUD" (fear uncertainty and doubt). and since the market is small and orderbooks of exchanges are not that big, the panic sell causes a bigger drop.

[migolmigol]

1) Economy performance

2) Government intervention

3) Other cryptocurrencies or ICOs

4) Panic selling

5) Hackers