Why does bitcoin crash occasionally?

[GetOutOfMyLife]

That crashes are not sporadic or occasional.
I know that we all desire bitcoin to be higher and higher, but there are a lot of decreasing factors an people who play down.
And it's clear, that market depend on news, and I hear only bad news last time (from India and China mostly).

The problem with the news, is that it tends to focus on the negative aspects, bad news spreads faster than good news, and that is a problem when it comes to bitcoin and other promising altcoins.

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[BountyX]

Have you ever heard the word "market"? This refers to a context of buyers and sellers, the buyers are convinced that the best thing to do is to buy, the sellers are convinced that the best thing to do is to sell. You wouldn't ask this question when the buyers ("the bulls") are in control and the price explodes to the upside. Well, when the seller ("the bears") get in control, the opposite happens. In cryptos, the swings are very extreme - that's it. But of course, big whales manipulate the market too. This happens in every market.

[GetOutOfMyLife]

And now we see bitcoin recovering again from this crash? Is it due to the Korean new tax rules, or something else entirely?

[adifariz]

das einzige Bitcoin-Dienstprogramm. Viele nutzen es als Wertaufbewahrungsmittel oder als spekulative Anlage. Und für diese Transaktion sind die Kosten nicht so wichtig.
Natürlich, da dies ein unregulierter Markt ist, Manipulation mit FUD (mit Nachrichten, mit hoch glaubwürdigem Spam oder Negativismus in Foren)

[Mersterious]

So, as many of you are painfully aware, bitcoin crashed around 30% over a couple of days, reportedly due to regulatory pressures in Asia, and a potential ban in China due to energy wastage and tax evasion risks etc. Reports suggest that China contributes as much as 70% of the worldwide hashing power

[Xester]

Have you ever heard the word "market"? This refers to a context of buyers and sellers, the buyers are convinced that the best thing to do is to buy, the sellers are convinced that the best thing to do is to sell. You wouldn't ask this question when the buyers ("the bulls") are in control and the price explodes to the upside. Well, when the seller ("the bears") get in control, the opposite happens. In cryptos, the swings are very extreme - that's it. But of course, big whales manipulate the market too. This happens in every market.

Very true.  Bitcoin can be manipulated by these big players.  I am thinking right now if the Chinese government is one of these big players.  They always ban bitcoin.  By doing this kind of announcement, people will panic and se their bitcoins.  Price will go down and they will be able to buy coins.  

[Vibr56]

All coins crash for numerous reasons ranging from normal pullbacks, to deep corrections resulting from negative market sentiment or bad news.... Eitherway, they are all part of Bitcoin's overall growth and success.

[Rosilito]

Maybe an unexpected wide selling panic but I do not think that this is kind of an intentional activities. Since bitcoin is decentralized the biggest company or group could make an intentional crash. This crashes could possibly the root of recent news that south korea bans bitcoin and about Japan's and China's regulatory woop such news probably drive people in panic for them to buy and sell bitcoin to get the hell out of such crashes.

[GetOutOfMyLife]

All coins crash for numerous reasons ranging from normal pullbacks, to deep corrections resulting from negative market sentiment or bad news.... Eitherway, they are all part of Bitcoin's overall growth and success.

A 40% pullback seems excessive even in the midst of the negative news as of late. There may be some deeper manipulation going on.

[redhondaxrm125]

So, as many of you are painfully aware, bitcoin crashed around 30% over a couple of days, reportedly due to regulatory pressures in Asia, and a potential ban in China due to energy wastage and tax evasion risks etc. Reports suggest that China contributes as much as 70% of the worldwide hashing power, and yet we only saw a 30% drop.

Source: Report: PBoC Quashes Bitcoin Mining Ban Rumor in China

Furthermore, we saw 30%+ drops in other cryptos, even unminable, non-decentralized ones. So, conspiracy theorists, why do you think bitcoin really suffers these sporadic crashes, could it be large-scale market manipulation? Or is it simply FUD leading to a wide-spread panic selling?

well, to be honest i really cannot tell for sure what in the crap's name is truly responsible for all these price drops or corrections(as what others call it) that has been happening the all the crypto currencies present. because obviously no one knows what the truth really is(except for those people behind the market manipulations if there are really market manipulators). the  percentage of all the reasons being thought of are completely equal to each other since they all can really be true or completely false. in fact, all these things might be the reasons behind every price drops for all we know.

having said all these, i really think that your guesses and other people's guesses are only as accurate or inaccurate as my guess.

[fulmetal08larz]

It is totally normal in this market cycle that during the first quarter of the year, people will take profit from what they have invested in the past year/s. It just seems like its crashing because of the FUDs that are spreading across the social media and mainstream news but those who knows and truly understands bitcoin and its technology, they won't get affected of this spreading disease to cause panic selling.

[Thadeous]

There are opinions that cryptocurrency fluctuations are closely related to CME futures expiration dates.
CME began trading the first Bitcoin futures at the beginning of December.
The first contract expired about a week ago and the initial one will expire 26th of Jan.
So let's see what will happen with crypto market tomorrow.

[gamechain]

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.

Bitcoin itself may be a very new thing, excessive investment may be bitcoin bubble, which led to misconfiguration of capital.

[GetOutOfMyLife]

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.

Bitcoin itself may be a very new thing, excessive investment may be bitcoin bubble, which led to misconfiguration of capital.

Doesn't really seem excessive, less than 0.1% of the world is invested in crypto as of now, there is still massive room for growth. I don't think it was the sudden growth that caused this.

[BountyX]

Have you ever heard the word "market"? This refers to a context of buyers and sellers, the buyers are convinced that the best thing to do is to buy, the sellers are convinced that the best thing to do is to sell. You wouldn't ask this question when the buyers ("the bulls") are in control and the price explodes to the upside. Well, when the seller ("the bears") get in control, the opposite happens. In cryptos, the swings are very extreme - that's it. But of course, big whales manipulate the market too. This happens in every market.

Very true.  Bitcoin can be manipulated by these big players.  I am thinking right now if the Chinese government is one of these big players.  They always ban bitcoin.  By doing this kind of announcement, people will panic and se their bitcoins.  Price will go down and they will be able to buy coins.  

Chinese Government could be one of the players, and wall street sharks for sure is another one. They control also the mainstream media and when the mainstream media starts a campaign against bitcoin, you can bet that someone there is buying the dips

[Emerge]

I dont even call it crash. One year ago at this time bitcoin worth 900$, i say this because i am a long term investor.

[reymartH]

Regulation can’t stop Bitcoin, but it can stop liquidity entering Bitcoin. If large scale institutional money is restricted from entering cryptocurrencies, then Bitcoin will eventually reach a peak and that will cause a selloff.

[flashmark]

According to my understanding BTC crash due to FUD. Whales/Market manipulators distributing fake news to dump the price. Then they buy in the dip and people who feared about the dump sell their BTC with loss.

[francesyrus]

After bitcoin hit its all time high at almost $18000 last December 15, 2017 some price correction happens. Now bitcoin back to its normal state seeing dumps and pumps for the past weeks. And the whales are now playing it right now thats why you are seeing some crashed on bitcoin and other cryto currency in the market.

[Abigale123]

In fact, this is a normal phenomenon, BTC to be adjusted, I believe the next it will grow up