Reasons Why Bitcoin Price Drops

[grermezter]

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

The most likely reason for the drop in the price of bitcoins is mainly attributed to a lot of major investors cashing out their bitcoins and mainly those cashing out are due to rumors or let's say for instance the rumor that went around saying that China was on the verge of banning bitcoins, this caused a lot of panic and had many investors selling their bitcoins because they were afraid it was going to drop and that made it even dropped more than it was previously anticipated.

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[syamster]

some issues or bad news about bitcoin can influence the price of bitcoin. For example, recently the news of China's potential exchange banned has likely spooked the investors. In addition, Jp morgan chase CEO slammed bitcoin as a fraud. These isues, however, extremely affects the market of bitcoin. people will be lack of trust in bitcoin.

Well it’s true the price is not drop that much as you are saying because what I believe the price of any currency can low and high in currency exchange because its related with trade and it’s a part of market exchange so its normal and no need make panic bitcoin has a good quality that it can change his price in a week so the price will go high.

[Zacharyce]

Bitcoin prices are always on the upward trend and there is definitely no downside since everyone wants to use Bitcoin in their daily lives and limit their cash on the road. I think the Bitcoin price may reach $ 10,000 this year

[longpro098]

due to rumors or supposing rumors spread that China is on the verge of causing panic. Investors who sell their bitcoins because they are afraid of bitcoin will increasingly fall

[lazer1064]

Periodic price rollbacks that occur after attaining psychologically significant marks at 5 000 USD, 6 000 USD in recent times - this, of course, is selling bitcoin whales, holders of large batches of bitcoin, maybe Satoshi Nakamoto himself. If they start selling their bitcoin a lot, then the price will fall dramatically, so they sell a little, not to bring down the price, and do it when certain record values ​​are reached. Trading robots are also tuned to such a strategy. The recent price drop in September after the ban in China - this, of course, was a panic, this is a different situation.

[Dudeperfect]

It simply follows the law of demand and supply and the reason is an increase in supply, fall in demand or both can cause the fall in the price of Bitcoin.

As of now, there are two main reasons (there are many) for increase in supply, those are as follows,

* Panic selling - Most of the newbies sell their holdings just because the next guy is selling and to it creates a domino effect on the market which means the demand remains constant and supply increases.

* Correction - When there is an excessive rise in the price in comparatively short time span then in such conditions, the correction takes place. Traders who bought at lower levels start selling their holdings to book profits.

[SixOfFive]

Basic reason for BTC price change is the demand-supply mechanism. If Demand is low, and a seller like to sell a commodity then he will sell at the rate that buyer want. This will drop the price of a commodity. This law also apply on BTC. Some other factors also play a major role in determining BTC pricing like govt. intervention, Altcoin performance etc.

[Frank0209]

It's normal thing happening every hour in the coin market ). Dump and Pump the price of any cryptocurrency is the main way to make profit of trader, buy in low then sell in high. You should know this one. Almost people just want Bitcoin price increase all the time but if this thing happen I think there are no profit left for trader cause when Bitcoin price only increase it'll make almost other altcoins price dumped

[Mmizan0909]

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

menurut pendapat saya,naik turunnya nilai tukar bitcoin itu ada beberapa faktor.yang pertama faktor isu yang di sebab kan oleh pihak tertentu yang mempunyai peranan penting dalam bitcoin , yang kedua tindakan takking profit dari pihak traders,yang ketika kebijakan yang di ambil oleh negata yang turut ambil andil dalam bitcoint.

[Gameroid]

It's normal thing happening every hour in the coin market ). Dump and Pump the price of any cryptocurrency is the main way to make profit of trader, buy in low then sell in high. You should know this one. Almost people just want Bitcoin price increase all the time but if this thing happen I think there are no profit left for trader cause when Bitcoin price only increase it'll make almost other altcoins price dumped

And specially if we talk about bitcoin it is very normal for bitcoin, Actually bitcoin is a new emerging currency and people are continuously increase because people all the time entering in the world of bitcoin and so the demand of bitcoin is increasing. some time when there is any bad new about bitcoin like in previous days when China bane ICOs it effect the price of bitcoin and so we saw some dump. But after some time people give support to bitcoin and again the price recover. So we can expect ups and down in the price of bitcoin.

[khaled0111]

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.

What you said is not in contradiction with the supply and demand theory. When people start to panic and start to worry about what will happen to Bitcoin just because they heard JP Morgan saying that Bitcoin is a fraud or because they fear to loose after the hardfork, they just start selling at low price to minimise their lost. But when every thing is OK, they just hold and do not sell what they have wich make the price rise.

[soy]

A mix of new investors attracted by the increasing media coverage and a shift from alt to btc for snapshot. That said, he has a great chance of correcting the snap immediately, even before, the bitcoin gold does not have good press with investors...

[maokoto]

In my around 3 year experience with bitcoin, it has always gone down significantly when bad news have appeared:

That's what happened recently with the china issue. I find it harder to predict when will it go up fast. But bad news, even FUD, make it go down.

[cryptomato]

it is very easy mate. actually all the markets work in the same way, stock exchange - forex - commodities. it is just the balance of supply and demand. if supply is more than demand, price drops. why demand goes lower? with more of acceptance of btc comes from different organizations increases the demand and other way around.

[princesocapuyo]

The reason why Bitcoin price might drop is only because of some fake news in the media or an attack on the network like another forkcoin that it has to deal with.

[colossus]

You can't exclude socio-psychological factor from price's ups-and-downs. People may hear something or read something and sell their currency immediately. And that has strong correlation with an overall price

[chichan13]

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

for me why bitcoin price drops it is because of Combination of market manipulation and panic sell As we all know, the cryptocurrency market has no regulation. Hence, it is no surprise that some of the big digital market currency players tend to manipulate the markets. They do so for their own profit.

[Markzuckertion]

The reason why bitcoin price drops is because people are took profit from the pump, then people are buy it again at the low price. This is alaways repeat.

[Redanim]

The exchange rate of such currency as bitcoin is formed due to active demand, as it is with other currency assets. But since bitcoins have low overall capitalization, bitcoin rate is heavily influenced by mass hype and big players.

[Wexnident]

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

Bitcoin's market value surely is dependent on the demand that it is having from the market. So the factor that makes its market value to fall is probably a change of its demand in the market. The law of supply and demand is also applicable with this. Such that as the demand increases, its marker value is getting more expensive.