Bitcoin Prices Are Falling Again. The Cause?

[marinakofoleva]

There are several reasons. One reason, there is no permanence in the storage of bitcoins and any cryptocurrency. Exchanges cannot provide a reliable system for storing bitcoins. That is why the price falls. The second reason, as follows from the first, there is no influx of new investors.

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[jhongzjhong]

I do believe that this price falling was made by those whales, they played the market price to fall down the price and of course, people that small bitcoin holders easy to panic and to sold-out their bitcoin hold. There's an article that I read says those whales are having a big share on bitcoin so they are easy to manipulate the price of bitcoin. Well, simple if you have a strong feeling to hold your bitcoin, you must ride the whale until the price was back.

[LeGaulois]

The article looks like someone trying to find something negative to say about Bitcoin and so uses Tether as an argument for what seems to be more a propaganda than a case study. And if it was really the case then all altcoins wouldn't have followed the same Bitcoin path, despite the fact people usually say altcoins values depend on Bitcoin value

[Harlot]

Last 2 days ago I read a news that the recent price drop that Bitcoin experienced was caused by the hacked of a Korean Exchange, Coinrail, which cost them to lose 40,000,000$ in cryptocurrencies. So which is which? What is the real news that cause Bitcoin to go down. We often relate news after the price action at happened as we are like detective connecting the dots of a past event, but where are the people now who are predicting the future price action with news that will surely affect it? The answer is none, as it isn't is effective as linking the news after the price action has already happened.

[bitcad4u]

Whatever it be the cause of bitcoin price fall.I will choose to inverse at dip.The people who had  invested at the dip ,gain a lot of profit.For this you have to choose the easy things.You have to buy more as much possible at the dip and sell at the maximum raise.

[darkangel11]

There are several reasons. One reason, there is no permanence in the storage of bitcoins and any cryptocurrency. Exchanges cannot provide a reliable system for storing bitcoins. That is why the price falls. The second reason, as follows from the first, there is no influx of new investors.

Because exchanges were never meant to store coins. They are there to allow people to buy and sell, and once the orders are filled one should move the funds out of there ASAP. People are trying to speculate too much, forgetting that trading is actually much more risky than holding. Once you give away the control of your keys, and that's what you're doing when your money is sent to an exchange, you are at their mercy.

[Surge_Dev]

The  rate depends on the supply-demand ratio, and the most notable price jumps are provoked by the owners of solid assets. As a result of their actions, there is a sharp increase in the number of people who want to buy a crypto currency or sell it as soon as possible. With the increase in demand, the bitcoin rate also rises, if the demand falls below the usual level, the rate of the crypto currency is lowered.

[supercanada1]

Bitcoin fell 2% early on Wednesday, dropping as low as $6,385. Other than one brief period in early February, when the cryptocurrency dipped below $6,000, today marks the lowest point for Bitcoin in 2018.

The latest Bitcoin crash appears to be a reaction to the release of a new study by University of Texas-Austin researchers indicating that Bitcoin prices were manipulated last year—when Bitcoin soared from $800 to nearly $20,000.

The New York Times report on the study explained that a “concentrated campaign of price manipulation may have accounted for at least half of the increase in the price of Bitcoin and other big cryptocurrencies last year.”

The research, conducted by University of Texas finance professor John M. Griffin and graduate student Amin Shams, presents evidence that another cryptocurrency called Tether was used to purchase Bitcoin after market downturns, thereby propping up Bitcoin prices.

“Tether seems to be used both to stabilize and manipulate Bitcoin prices,” the researchers say in the study.

Tether was created by a crypto exchange called Bitfinex, whose executives strongly denies the claims. “Bitfinex nor Tether is, or has ever, engaged in any sort of market or price manipulation. Tether issuances cannot be used to prop up the price of Bitcoin or any other coin/token on Bitfinex,” Bitfinex CEO J.L. van der Velde said in a message sent to Business Insider.

The University of Texas researchers tracked millions of cryptocurrency transactions last year, and say that the “patterns cannot be explained by investor demand proxies” and instead seemed to arise through the strategic use of Tether.

What’s more, this scenario brings with it the possibility of huge profits for Tether creators, the study states: “If Bitcoin prices increase, then the founders can cash out the acquired Bitcoins into dollars, likely at a slower pace and on an opaque channel that has less price impact than their initial buying behavior. If the Tether issuers wish to legitimize Tether and avoid scrutiny, they can convert some of their cryptocurrencies to U.S. dollars and retrospectively provide dollar reserves for Tether.”

After skyrocketing in value in 2017, Bitcoin and other cryptocurrencies have collapsed through much of this year. Bitcoin fell 40% during the course of one week at the end of January, and cryptos like Ethereum, Ripple, and Litecoin dropped more than 25% in a single day. The cryptocurrency crash is still happening today. Litecoin, for one, decreased to a new low for 2018 on Wednesday, hitting $97—a dip of nearly 75% off the all-time high of $379 in December.

Much like the sharp increases of 2017, the steep declines for cryptocurrencies over the past few months are hard to fully explain. Most observers chalk them up to a combination of countries cracking down on crypto exchanges and investors either seeking to cash out their profits or eat their losses. Or more people could be accepting the premise of critics like billionaire investor Warren Buffett and Nobel-winning economist Robert Shiller, who basically say that Bitcoin is a scam, or at least a bubble that’s bound to pop.

Hackers and the possibility of price manipulation seem to also be concerns for crypto investors. After a South Korean crypto exchange said it was hacked last week, Bitcoin tumbled 10%. In addition to the new University of Texas report on Bitcoin price manipulation, U.S. investigators are looking into whether several cryptocurrency exchanges have been manipulating prices, the Wall Street Journal reported last week.

In the University of Texas study’s conclusion, researchers say, “Our findings provide substantial support for the view that price manipulation may be behind substantial distortive effects in cryptocurrencies.” And they say that more regulation is needed: “These findings suggest that external capital market surveillance and monitoring may be necessary to obtain a market that is truly free.”

http://time.com/money/5310924/bitcoin-price-manipulation-tether/

I haven't yet read the study which claims a link between tether and bitcoin. My initial impressions are its a BS claim. Tether lacks the market cap to significantly affect bitcoin's price. The amount of purchasing volume necessary to manipulate the price of bitcoin up near $20k is far in excess of bitfinex or tether's net worth. If the price of bitcoin was manipulated there are far better ways of explaining it. Crypto exchanges which lack trade commissions are probably a better explanation for market manipulation as it could allow traders to buy and sell to themselves on multiple accounts on an exchange without incurring significant losses.

The last line of this article seems to contradict itself:

In the University of Texas study’s conclusion, researchers say, “Our findings provide substantial support for the view that price manipulation may be behind substantial distortive effects in cryptocurrencies.” And they say that more regulation is needed: “These findings suggest that external capital market surveillance and monitoring may be necessary to obtain a market that is truly free.”

This is what comes to mind, reading the last part.



The idea of a crypto market being "enslaved" under surveillance and monitoring, in order to achieve "freedom" could be a form of "freedom is slavery" political posturing.

If the context is correct.

The prices fall due to fall in the market demand and market demand may fall due to many reasons. It can fall when the price stability in the market is down. It can also fall when there are rumors about the technology. The demand also falls when the government implements laws and regulations against the use of technology.  One can also reduce the demand foe a crypto currency when the risk term associated to it is high thereby lowering the prices.

[Dancobit]

Yes, because the volume of Bitcoin is not much and the circulation is uneven, so the Bitcoin movement is very sensitive to the actions of the holder. When a person buys or sells Bitcoin in large quantities, then the price can instantly move extreme. If in the future Bitcoin volume increases and distribution is distributed evenly, then volatility will slack off by itself.

[Colt22]

I still can not understand why Bitcoin falls. The volume is starting to increase, suddenly it is cutting. It is followed by more and more people than last years. I'm really surprised why the rise does not happen.

It was just a fluctuation which occures at some interval now the price is again better and it is on the upward direction. I hope that in the coming months the price of bitcoin will reach to $15000 or may reach to more higher than that because it is not hard for bitcoin.

[yvesp110]

Bitcoin fell 2% early on Wednesday, dropping as low as $6,385. Other than one brief period in early February, when the cryptocurrency dipped below $6,000, today marks the lowest point for Bitcoin in 2018.

The latest Bitcoin crash appears to be a reaction to the release of a new study by University of Texas-Austin researchers indicating that Bitcoin prices were manipulated last year—when Bitcoin soared from $800 to nearly $20,000.

The New York Times report on the study explained that a “concentrated campaign of price manipulation may have accounted for at least half of the increase in the price of Bitcoin and other big cryptocurrencies last year.”

The research, conducted by University of Texas finance professor John M. Griffin and graduate student Amin Shams, presents evidence that another cryptocurrency called Tether was used to purchase Bitcoin after market downturns, thereby propping up Bitcoin prices.

“Tether seems to be used both to stabilize and manipulate Bitcoin prices,” the researchers say in the study.

Tether was created by a crypto exchange called Bitfinex, whose executives strongly denies the claims. “Bitfinex nor Tether is, or has ever, engaged in any sort of market or price manipulation. Tether issuances cannot be used to prop up the price of Bitcoin or any other coin/token on Bitfinex,” Bitfinex CEO J.L. van der Velde said in a message sent to Business Insider.

The University of Texas researchers tracked millions of cryptocurrency transactions last year, and say that the “patterns cannot be explained by investor demand proxies” and instead seemed to arise through the strategic use of Tether.

What’s more, this scenario brings with it the possibility of huge profits for Tether creators, the study states: “If Bitcoin prices increase, then the founders can cash out the acquired Bitcoins into dollars, likely at a slower pace and on an opaque channel that has less price impact than their initial buying behavior. If the Tether issuers wish to legitimize Tether and avoid scrutiny, they can convert some of their cryptocurrencies to U.S. dollars and retrospectively provide dollar reserves for Tether.”

After skyrocketing in value in 2017, Bitcoin and other cryptocurrencies have collapsed through much of this year. Bitcoin fell 40% during the course of one week at the end of January, and cryptos like Ethereum, Ripple, and Litecoin dropped more than 25% in a single day. The cryptocurrency crash is still happening today. Litecoin, for one, decreased to a new low for 2018 on Wednesday, hitting $97—a dip of nearly 75% off the all-time high of $379 in December.

Much like the sharp increases of 2017, the steep declines for cryptocurrencies over the past few months are hard to fully explain. Most observers chalk them up to a combination of countries cracking down on crypto exchanges and investors either seeking to cash out their profits or eat their losses. Or more people could be accepting the premise of critics like billionaire investor Warren Buffett and Nobel-winning economist Robert Shiller, who basically say that Bitcoin is a scam, or at least a bubble that’s bound to pop.

Hackers and the possibility of price manipulation seem to also be concerns for crypto investors. After a South Korean crypto exchange said it was hacked last week, Bitcoin tumbled 10%. In addition to the new University of Texas report on Bitcoin price manipulation, U.S. investigators are looking into whether several cryptocurrency exchanges have been manipulating prices, the Wall Street Journal reported last week.

In the University of Texas study’s conclusion, researchers say, “Our findings provide substantial support for the view that price manipulation may be behind substantial distortive effects in cryptocurrencies.” And they say that more regulation is needed: “These findings suggest that external capital market surveillance and monitoring may be necessary to obtain a market that is truly free.”

http://time.com/money/5310924/bitcoin-price-manipulation-tether/

I haven't yet read the study which claims a link between tether and bitcoin. My initial impressions are its a BS claim. Tether lacks the market cap to significantly affect bitcoin's price. The amount of purchasing volume necessary to manipulate the price of bitcoin up near $20k is far in excess of bitfinex or tether's net worth. If the price of bitcoin was manipulated there are far better ways of explaining it. Crypto exchanges which lack trade commissions are probably a better explanation for market manipulation as it could allow traders to buy and sell to themselves on multiple accounts on an exchange without incurring significant losses.

The last line of this article seems to contradict itself:

In the University of Texas study’s conclusion, researchers say, “Our findings provide substantial support for the view that price manipulation may be behind substantial distortive effects in cryptocurrencies.” And they say that more regulation is needed: “These findings suggest that external capital market surveillance and monitoring may be necessary to obtain a market that is truly free.”

This is what comes to mind, reading the last part.



The idea of a crypto market being "enslaved" under surveillance and monitoring, in order to achieve "freedom" could be a form of "freedom is slavery" political posturing.

If the context is correct.

Look at the general factor as we say demand people are responsible for the alteration of price. We further know that the demand of people depends upon speculation. Like the developed countries speculate the market and now we will be having a good market is the upcoming days. The negative perception of people is the main problem, once they understand that how benefited Bitcoin is then the will must be investing in the market and price will rise up again.

[Mhd-Bobbi]

Bitcoin fell 2% early on Wednesday, dropping as low as $6,385. Other than one brief period in early February, when the cryptocurrency dipped below $6,000, today marks the lowest point for Bitcoin in 2018.

The latest Bitcoin crash appears to be a reaction to the release of a new study by University of Texas-Austin researchers indicating that Bitcoin prices were manipulated last year—when Bitcoin soared from $800 to nearly $20,000.

The New York Times report on the study explained that a “concentrated campaign of price manipulation may have accounted for at least half of the increase in the price of Bitcoin and other big cryptocurrencies last year.”

The research, conducted by University of Texas finance professor John M. Griffin and graduate student Amin Shams, presents evidence that another cryptocurrency called Tether was used to purchase Bitcoin after market downturns, thereby propping up Bitcoin prices.

“Tether seems to be used both to stabilize and manipulate Bitcoin prices,” the researchers say in the study.

Tether was created by a crypto exchange called Bitfinex, whose executives strongly denies the claims. “Bitfinex nor Tether is, or has ever, engaged in any sort of market or price manipulation. Tether issuances cannot be used to prop up the price of Bitcoin or any other coin/token on Bitfinex,” Bitfinex CEO J.L. van der Velde said in a message sent to Business Insider.

The University of Texas researchers tracked millions of cryptocurrency transactions last year, and say that the “patterns cannot be explained by investor demand proxies” and instead seemed to arise through the strategic use of Tether.

What’s more, this scenario brings with it the possibility of huge profits for Tether creators, the study states: “If Bitcoin prices increase, then the founders can cash out the acquired Bitcoins into dollars, likely at a slower pace and on an opaque channel that has less price impact than their initial buying behavior. If the Tether issuers wish to legitimize Tether and avoid scrutiny, they can convert some of their cryptocurrencies to U.S. dollars and retrospectively provide dollar reserves for Tether.”

After skyrocketing in value in 2017, Bitcoin and other cryptocurrencies have collapsed through much of this year. Bitcoin fell 40% during the course of one week at the end of January, and cryptos like Ethereum, Ripple, and Litecoin dropped more than 25% in a single day. The cryptocurrency crash is still happening today. Litecoin, for one, decreased to a new low for 2018 on Wednesday, hitting $97—a dip of nearly 75% off the all-time high of $379 in December.

Much like the sharp increases of 2017, the steep declines for cryptocurrencies over the past few months are hard to fully explain. Most observers chalk them up to a combination of countries cracking down on crypto exchanges and investors either seeking to cash out their profits or eat their losses. Or more people could be accepting the premise of critics like billionaire investor Warren Buffett and Nobel-winning economist Robert Shiller, who basically say that Bitcoin is a scam, or at least a bubble that’s bound to pop.

Hackers and the possibility of price manipulation seem to also be concerns for crypto investors. After a South Korean crypto exchange said it was hacked last week, Bitcoin tumbled 10%. In addition to the new University of Texas report on Bitcoin price manipulation, U.S. investigators are looking into whether several cryptocurrency exchanges have been manipulating prices, the Wall Street Journal reported last week.

In the University of Texas study’s conclusion, researchers say, “Our findings provide substantial support for the view that price manipulation may be behind substantial distortive effects in cryptocurrencies.” And they say that more regulation is needed: “These findings suggest that external capital market surveillance and monitoring may be necessary to obtain a market that is truly free.”

http://time.com/money/5310924/bitcoin-price-manipulation-tether/

I haven't yet read the study which claims a link between tether and bitcoin. My initial impressions are its a BS claim. Tether lacks the market cap to significantly affect bitcoin's price. The amount of purchasing volume necessary to manipulate the price of bitcoin up near $20k is far in excess of bitfinex or tether's net worth. If the price of bitcoin was manipulated there are far better ways of explaining it. Crypto exchanges which lack trade commissions are probably a better explanation for market manipulation as it could allow traders to buy and sell to themselves on multiple accounts on an exchange without incurring significant losses.

The last line of this article seems to contradict itself:

In the University of Texas study’s conclusion, researchers say, “Our findings provide substantial support for the view that price manipulation may be behind substantial distortive effects in cryptocurrencies.” And they say that more regulation is needed: “These findings suggest that external capital market surveillance and monitoring may be necessary to obtain a market that is truly free.”

This is what comes to mind, reading the last part.



The idea of a crypto market being "enslaved" under surveillance and monitoring, in order to achieve "freedom" could be a form of "freedom is slavery" political posturing.

If the context is correct.

why bitcoin prices fall. What caused it?
I think. because there's a big mafia playing, selling all the bitcoin they get from the bitcoin scam site they made last year, and also the fall of XPY prices is now also the cause of bitcoin decline, and many HYIP sites under the guise of bitcoin investment leading to fraud, and it's time for fraudsters to sell bitcoins from their scams.
so, in the heart of the answer, bitcoin prices go down because of the "cheat" coin action that promotes homemade coins and makes huge profits and then runs away.

[3acaga]

Hello, the more you and everyone else will come up with topics like this yours, the more people will have panic-caused by such topics and other news on the Internet.
P.S. Come to your senses and stop panicking by spreading ridiculous predictions about the bitcoin course ...

[bocyaj]

To be honest .I don't know why people worry about the current price loss.Being a wise trader ,you have inverse in bitcoin for your future.
After this month,we don't it is possible to buy bitcoin at this 6500$,we should waste the opportunity to inverse at low price.

[jackky]

The bitcoin rate fell again after the statement of the South Korean crypto exchange that it was subjected to a cyberattack. Technically, and especially fundamentally, there are reasons today for quotes to continue to decline. The current pause will be used by "bears" to consolidate efforts and pressure on the bitcoin rate to new minimum values.

As far as I know, Korea is one of the strongest developing nations on the internet. I do not think that Korea's exchange is easily attacked by hackers. Maybe this is a fake news

[reflector]

To be honest .I don't know why people worry about the current price loss.Being a wise trader ,you have inverse in bitcoin for your future.
After this month,we don't it is possible to buy bitcoin at this 6500$,we should waste the opportunity to inverse at low price.

We will never about the price changes but you should confirm what is the reason for the price dumped of the any crpto currencies for usaing mate. Wheever the market is falling first you need to check the potential bump expectation of concern coins bro.
This is a least value you gonna see on the crypto currency market will be recovered and big blocked in the price chart bro.

[Activitycoin]

The bitcoin rate fell again after the statement of the South Korean crypto exchange that it was subjected to a cyberattack. Technically, and especially fundamentally, there are reasons today for quotes to continue to decline. The current pause will be used by "bears" to consolidate efforts and pressure on the bitcoin rate to new minimum values.

As far as I know, Korea is one of the strongest developing nations on the internet. I do not think that Korea's exchange is easily attacked by hackers. Maybe this is a fake news

Korea is one the well developed country for sure then why people are saying it being a victim of hacking, but one more reality is hacking does not mean that if a country is well developed so it will never get hack, so carelessness causes hacking, for the dropping price of bitcoin I am sure only the panic sellers are the real reason, when more people sell bitcoin at the lowest price them price automatically falls so it happens most of time because of panic seller who are clever enough they panic a lot, price falls for high availability, then they buy again at lowest price so never panic.

[Altero]

I still can not understand why Bitcoin falls. The volume is starting to increase, suddenly it is cutting. It is followed by more and more people than last years. I'm really surprised why the rise does not happen.

We can hardly predict the trend of our market today due a lot of factors affecting just like FUDs, whales manipulations, banning crypto in some places and hacks in some exchanges sites. As we notice also that, when bitcoin became so popular the more it become volatile. That's why, we never expect that, of what happen in previous years will also be happen in the coming days but it surely there is pump of prices along the way.

[ladydark]

There seems no specific reason to say but I suspect that it might be due to the dumping of bitcoins by huge whales.

[Slow death]

I still can not understand why Bitcoin falls. The volume is starting to increase

as he said:

The prices fall due to fall in the market demand and market demand may fall due to many reasons. It can fall when the price stability in the market is down. It can also fall when there are rumors about the technology. The demand also falls when the government implements laws and regulations against the use of technology.  One can also reduce the demand foe a crypto currency when the risk term associated to it is high thereby lowering the prices.

@hsyncl

see:

India’s RBI Eyeing Own Crypto Is Sign of Potential Ban Reversal, Says Ripple Chief


Vietnam’s Finance Ministry Proposes Temporary Ban on Crypto Mining Hardware Imports


things like that are reducing demand

There seems no specific reason to say but I suspect that it might be due to the dumping of bitcoins by huge whales.

regulations are the cause of demand reduction