Bitcoin Prices Are Falling Again. The Cause?

[Red Fish]

Just keep in the mind, that Bitcoin market is large, but mainly in some countries, like USA. Therefore main market players can buy or sale, and price can go up or down. Plus if new mining farms coming in, they can also make price lower.

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[joelou]

Yeah as we can see the price of bitcoin now is falling again i think Because of not having enough funds behind them to influence the market in such a significant way.then now makes people getting panic and sell their holdings.

[Ferris419]

When the bitcoin reaches 8500$. It is hoped that it will continue to increase as soon as ETF is approved. But prices fell sharply when ETF was postponed. I personally think that ETF will not be passed. But somehow the market will go up as in 2017

[loveinberlin]

I am not an economist but to my mind, there is more than just one cause. I think that btc prices are falling down but this doesn't mean that this is forever, the market isn't stable because the demand and supply affect it

[baricuri]

It is hard for anyone to know the exact cause, but in summary, the withdrawal of too much BTC on the market will reduce the btc price and almost all other coins are falling, not just BTC

[jaysabi]

It is hard for anyone to know the exact cause, but in summary, the withdrawal of too much BTC on the market will reduce the btc price and almost all other coins are falling, not just BTC

Yeah but all other coins are falling because bitcoin is falling, not that they happen to be falling at the same time. Because of how their market caps and average price are computed, when Bitcoin falls, all the alts fall too. The average price on coinmarketcap is computed by taking the volume-weighted average of all markets, and the biggest market for most coins is BTC. So when BTC price is rising or falling, the average dollar value of trades in those BTC-to-alt markets rises or falls at the same time, which makes the average price rise or fall. That's why you see most of the alts trading in the same direction at the same time as BTC, it's because so much of their price is determined by BTC's price. It's not a coincidence.

[jademacoy]

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.

Simply they manipulate market price to maximize the optimal market price increase in the near future where they are planning to beat the 2017 highest market price for bitcoin. In this way they should go down first just like emptying the glass of water and fill another huge volume.

[Agapelove]

The latest fall of bitcoin happened last Wednesday and it was due to the postponement of the decision of US Securities and Exchange Commission regarding the denial or approval of bitcoin ETF (Exchange-Traded Funds) product. Most traders believe this ETF would be beneficial.

[Epimetheus]

Bitcoin falling price is due to many reasons. Like its irregularities in its production and distribution by miners. Some other related reasons are its ban in many country. Recently indian government ban bitcoin trading in their country and this thing directly affects the price of bitcoin. Another reason behind recent falling price of bitcoin is postpone of the decision of bitcoin exchange trading fraud by us government. Some time the negative news spread by different news media becoming the reason behind its falling price.

[zwiggel]

The reason that bitcoin prices are falling is because investors are losing interest in the currency. Poor liquidity plus the emergence of new currency bills have made bitcoin less noticeable. The large amount of bitcoin sold is also causing the bitcoin price to drop.

[Oasisman]

Bitcoin falling price is due to many reasons. Like its irregularities in its production and distribution by miners. Some other related reasons are its ban in many country. Recently indian government ban bitcoin trading in their country and this thing directly affects the price of bitcoin. Another reason behind recent falling price of bitcoin is postpone of the decision of bitcoin exchange trading fraud by us government. Some time the negative news spread by different news media becoming the reason behind its falling price.

I agree with all the grounds for Bitcoin to drop that you mentioned, but not sure with the last one. We know media is a powerful tool to brainwash the people and twist the story from a different perspective, but its totally different in cryptospace where whales have been controlling almost all of the coins in the market. These people dont rely on media, since they themselves knew what was happening in the market. Only those small-time investors will probably be fooled by negative news, and that alone cannot hurt the prices in the market.

[hibiscus]

Bitcoin prices are falling again,there will be some market related reasons are there for the above .Every body knows that the bitcoin market is volatile and it can move upward or downward.If there is more sellers in the market than buyers its price will be going down and if the buyers are more than the sellers its price will be increasing.The current market fall is related to America's ETF   postponement on coming September and after that the market will be recovering positively.
      

[pungopete468]

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?

The current factor is due to the delay of bitcoin etf which makes the price of bitcoin now declines in price. and if later the decision has come out there will likely be changes. between increase or decrease

[Rechargers]

Don't panic. 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. Good luck.

[taeewo]

We can't just point pin point some things that is causing the decline of btc, it might just be causing by the manipulation from whales or FUD.

[Morgann]

Yeah as we can see the price of bitcoin now is falling again i think Because of not having enough funds behind them to influence the market in such a significant way.then now makes people getting panic and sell their holdings.

Dropping of prices in the market is not a problem because you can invest a huge amount while the market price is low so all you need to do is be patient at the current market price.

[shadowduck]

The main reason for the fall of bitcoin is to attract new people, because for the old price, few people would buy bitcoin.