Why does bitcoin crash occasionally?

[knien]

I think that the amount of new traders entering the market is one of the main reasons for the FUD sell chain reaction after each and every negative mainstream media message. They still have to develop strong hands.  

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[DoublerHunter]

Bitcoin doesn't crash occasionally, it just crash depending on the circumstances that is currently happening in the market of bitcoin and because of the FUDs right now that we have for bitcoin, it creates fear for the other people especially those who are newbies in this cryptocurrency world and that creates panic selling situation that decrease the price a lot.

[MilkBi]

Market fluctuations will have bad or good news to bring to people and make them bitter about the bitcoin market, in addition there are many other contributing factors to increase or decrease the value of bitcoin as market manipulation , speculation / storage of great value ..., There are many reasons and it also happens in different forms of investment and you should pay attention to how to improve the system. What they do may have a bitcoin market opportunity.

[bengca84135120]

The rise and fall of BTC is normal behavior!
Because the price of BTC is determined by the market, although the value of encrypted currency is now affected by demand and trading volume!
Many people don't understand the technology of bitcoin, and the purpose of their purchase is to make money, so sometimes they choose to sell when they fall, causing the price to fall!

[joebrook]

I think the price reduction of bitcoin is a normal phenomenon, it is a very normal adjustment.
A lot of people saw a lot of falls, and they said they broke, I don't think so, I think of it as a correction, so it's better to go up.

The rate at which bitcoin speedily raced to the $19K mark was really very alarming and am sure though investors where happy, there were also afraid of it as well, because it was simply very much unbelievable. Bad news and rumors as well price corrections are the reasons why the price constantly falls.

[anti-scam]

Whales manipulation
Fear and panic sell
Fake news
etc...

There should be an agency that filters information about bitcoin, so anyone can not make false information and do fud.
China has done it several times and succeeded in making bitcoin holders panicked. this may be one of the strategies to gain profits in a sneaky way.

[FourByfour]

The theory could be a truth since it happened suddenly to all known crypto currency , but we cannot change the fact that it also happened in past which is seem to be normal to everyone.

[xuv500]

The rise and fall of BTC is normal behavior!
Because the price of BTC is determined by the market, although the value of encrypted currency is now affected by demand and trading volume!
Many people don't understand the technology of bitcoin, and the purpose of their purchase is to make money, so sometimes they choose to sell when they fall, causing the price to fall!

Perfect. I go with the above answer. Adding to this there is some correction happens in bitcoin as part of their activity to strengthen their base to make bitcoin further bullish. This activity sometimes lower the price but that's part of the cryptocurrency health check kind of thing. Do not panic when price goes down and you cannot actually say that it is a crash, it's just a warm up activity for a bullish future.

[greenclub09]

the crash of bitcoin sometimes happens crash unpredictably due to the first reason is big amount of bitcoin held by some big whales on the world, so they can control the market whenever they want, secondly using the unstable from the world such as bitcoin banning in Korea or China, bitcoin can be drop more than before.

[mOgliE]

Hi,

I think both can be explanatory.

I mean, the Asian bitcoin community is large so whether it is a manipulation from the Chinese government, or an over-reaction of the involved market once the news is out... Both lead to the exact same result. So actually, it is hard to say... and quite uninteresting because both phenomenon are completely out of reach of individuals.


Then, regarding the bitcoin generally, I would say that there are so many factors and so many people involved here, that it is completely impossible to build any accurate model.

[kdiag]

The rise and fall of the btc occurred constantly, the Whales use influence on the course, as well as the upcoming Chinese holidays on the eve...
Everything will soon normalize and the market will grow after february.

[aizen10]

like what you said OP "it simply FUD leading to a wide-spread panic selling" because 5% of bitcoin holders/investors are newbie in this industry so it is very normal that this newbie sell all of their bitcoin when they see that they are losing money by the dip which is not recommend to do as a trader. and in addition, bitcoin investors are switching to altcoin just to make more profits after a massive effect of bitcoin dip to altcoins. this is just all my opinion.

[Xester]

The rise and fall of the btc occurred constantly, the Whales use influence on the course, as well as the upcoming Chinese holidays on the eve...
Everything will soon normalize and the market will grow after february.

Chinese are always part of the bitcoin crash.  They always announced that they are banning bitcoin.  Also the crash was a result of the big players.  They hold big amount of bitcoin and they can control or manipulate the price of it in favor of them.  Always in favor of them.

[BitcoinHodler]

maybe we need to change the meaning of "crash" first before starting to talk about bitcoin. i mean there is nothing else like bitcoin (at least not that many other markets) so the comparison is impossible. what we call big drop most of the times is simply daily fluctuations of price. for example the $1000 that goes up and down these days!

and the same way the "crash" is a simple market correction most of the times and then it is followed by the large number of newbies panic selling.

[BrBoy]

Anything below 8k will be catastrophic. But, I believe if it goes to 8k, it will be there for a split second and then BAM! the much needed correction is done and she will bounce up so fast you can then truly call it the lighting network.

There's a lot of anticipation to buy at 8k though so will be hard to catch - I'll be happy if I can grab some below 9500.

Don't worry fellas, like Htl says, this correction is healthy and needed for further growth.

[Kittygalore]

Although bitcoin couldn't be manipulated by any private sector, its value can be. This is called Market Manipulation. A group of people will decide wether this productnwill increase in price or it would be decreased. Then bam, they have now manipulated the market based on their own hypotheses and inferrences.

[CryptikEnigma]

We touched the second bottom, 8-9k is too unrealistic, 10340 was a low on bittrex today so now im waiting for a rebound.. im happy my buy order at 10500 was filled!

[unsquidly]

There are two major reasons which I know of through the price crash of BTC occurs and they are
* News and FRUD
* Corrections

[GetOutOfMyLife]

A lot of people mentioning FUD, but who are the people driving this? What are their motives? Are the whales somehow collaborating to crash the market so they can buy back in lower?

[Yamifoud]

Although bitcoin couldn't be manipulated by any private sector, its value can be. This is called Market Manipulation. A group of people will decide wether this productnwill increase in price or it would be decreased. Then bam, they have now manipulated the market based on their own hypotheses and inferrences.

To much people involve in here, and with that Market Manipulation it seems to be true. It really affect the entire crypto, as they continue doing this, it makes people moving out from crypto which is not good. We make this market grow not by killing it, maybe we should keep helping each others to make this new form currency to succeed.