Bitcoin Prices Are Falling Again. The Cause?

[alyssa85]

The price usually falls when exchanges get hacked because people KNOW that coins will be dumped by the hacker, so they try to sell ahead of that.

After a bit the market then stabalises as the hacked coins are absorbed, and life then carries on.

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[ucingucingan]

yes because there's a big mafia at work, by selling all the bitcoins they've earned from the bitcoin scam website they had made last year, and also the XPY price is down now and the cause of bitcoin is down,
There are also many HYIP sites under the guise of bitcoin investments that lead to a scam, and now it's time for scammers to sell bitcoin from their scam.

[DeadCoin]

I think there is no particular reason behind this lrice falling. Many false news spreading about bitcoin, and another thing is big investors are dumping their coins to sell at high price. Dont judge the market with current situation, just buy bitcoin at low price and hold the coin till the market will recover. Hope soon the market will recover again and the price of bitcoin will fly to moon

[cardo]

Also lots of people use Bitcoin to scam people so people have doubt in crypto and afraid on it, and some fake news that have no proofs and just only want to slander bitcoin and maybe this affects bitcoin value.

[btcblockchain]

The main reason bitcoin prices are falling down is government intervention and new rules and hacking news and news about price manipulation all these reasons bitcoins price are falling

[yslyv]

i honestly believe that the only reason that drops the price is some whales want to collect more. they give sell orders and do not let the price go up. unfortunately we all have to wait till they satisfy about the amount they collected.

[Dmitry.Vastov]

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 most problematic thing with the people are that they got worried with these little flactuation. This is very common rule of every investment that every investment undergoes a little bit flactuation and the flactuation in the bitcoin is very temporary because if we look at the average valuation of bitcoin then we can easily see that it is quite stable and also a temporary flactuation in the valuation is all because of negative publicity and wrong rumours about the bitcoin.

[noah tall]

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.

In my opinion the reason is decreasing market cap. People are withdrawing their money or converting into Altcoin due to which the price of bitcoin is decreasing day by day. Other reason is big investor’s manipulation of the market. It is also a big problem for bitcoin price. Price controlling by some investor damaged the image of bitcoin the most.

[pelipurlara]

hope after the correction is over, the market will come back. Until it only holds bitcoins and awaits price increases and there is nothing new for falling prices, as there is a spread of negative news about bitcoin. This makes people panic about bitcoin. Big whales manipulate the market. People are panicking and selling their bitcoin, making the market worse

[mimienamphine]

People analysis of the low cryptocurrency prices are of varied opinions as some associate this fall to the hacking of binance recently. People are saying that if exchanges continue to be outwitted by scammers then cryptocurrency has come to an end.The hackers will come and dump the price after getting it easily.

[tintinbongs]

The fall in the prices of the bitcoin and other digital currencies is primarily due to the two reasons. Bitcoin price was trading at $9,761.91 up 2.58 percent on Coindesk today at the time of reporting.The highest it reached today was 9,804.55. Despite these slight gains, there is still a long way to go before the virtual currency matches the highs set by it last year.  Investors are misguided in believing various online trading platforms to be SEC-registered and regulated marketplaces when they are not, SEC said. Even the Financial Services Agency (FSA) came out with a statement that domestic cryptocurrency exchanges will be suspended.

[Sergio444]

Bitcoin prices have started to fall. some days, the currency market will be unstable. Now, while investing in crypto currency market, they can achieve doubling profits with prices.

market prices are always unstable. The price of bitcoin in a minute now will be different from subsequent minute, either by increasing or decreasing. But currently, the fluctuation in the market price isn't that huge and I think it is good for trading. I have been wondering what exactly causes the instability of this market.

[btcblockchain]

Bitcoin prices are repeatedly reacting to ETF news because of ETF news they are falling again prices will increase once the market bounce back

[Wong Goblog]

It must be admitted that the biggest factor that made bitcoin fall again due to the influence of the media who always preach negative things about bitcoin, this is what makes users panic and chooses to sell bitcoin so as to make the price drop.

[BitBustah]

To put it simply: Supply is outweighing demand.  Bitcoin has an inflation rate right now of 3% right now which is still very high.  There are not enough buyers to pump up the price right now.  Wait until the next block halving if you really want to see prices soar to the sky.

Mt gox still has a lot of coins to sell off so it may take a few years to reach the 20k mark again.

[hahay]

Bitcoin prices fall again I think it's natural, because it is unlikely also will rise quickly after the market crashes so deep. To reach the point of $20K it will definitely take a long time.

[Marcelle7]

One of the causes of the decline in the majority of virtual currency is the Chinese Government's plan to tighten cryptocurrency transactions in the country. So it has a big impact in the price for now.

I do not think this is the main reason of bitcoin being dumped. China is no longer the king in crypto rather i would say that no single country can impact the price of bitcoins. The reason which i see is that ETF is delayed.

[traderethereum]

once again, the media take apart for bitcoin falling and makes people getting panic. we cannot blame media that gives a bad news because they only do their jobs. but I am sure that people will not panic in a long time because they will realize that if the news is false, they will be back to the market and will still support bitcoin again. but for people that still stay calm, they will not react with the bad news and they don't care about the news because they believe that bitcoin is strong enough to prevent the bad news.

[Ansdaoust6]

One of the causes of the decline in the majority of virtual currency is the Chinese Government's plan to tighten cryptocurrency transactions in the country. So it has a big impact in the price for now.

Previously 10 August was the date which everyone was waiting for EFT approval but now it is delayed to September. This news of delay may have caused the lack of interest in BTC for the time being and the price is dumped to about 500$ currently trying to stabilize at 7500$.

[hdueueiw432]

Bitcoin prices are down but their value is still high. I'm not sure there is an inversion here. But I want to ask if the scarcity in finding BTC has led to that?