Catalyst for recent bitcoin dump

[xSkylarx]

I wonder what really triggered the price of bitcoin to dump this hard. From its ATH of $65k to $30k, that is already more than 50% dump. I don't think Elon Musk is the only one responsible for this because I often read people only blaming him. It's like ghost month came earlier than we expected.

And also, if institutions and many people are buying this dip then who are these people selling their bitcoin all the way down to earlier's dump. If these people are new to crypto and are panic selling, can it really drive the price this low?

[Kemarit]

I wonder what really triggered the price of bitcoin to dump this hard. From its ATH of $65k to $30k, that is already more than 50% dump. I don't think Elon Musk is the only one responsible for this because I often read people only blaming him. It's like ghost month came earlier than we expected.

And also, if institutions and many people are buying this dip then who are these people selling their bitcoin all the way down to earlier's dump. If these people are new to crypto and are panic selling, can it really drive the price this low?

The Elon Musk tweet might have really affected the price. Remember he used to be a supporter of bitcoin, but recently he went full nuts and becoming anti-bitcoin and that might have an impact to most bitcoin investors and then we have selling pressures, newbies panic, so we go on a capitulation 50% or more, and we could call this a crash.

Maybe others are selling because they are afraid that the price could even go further down. And will probably try to re-invest when the market settles down.

[Coin_trader]

Simple answer, FUD. Multiple bads news against Bitcoin plus a bearish chart signal piles up to form this massive dump. Most of the holders become fearful because all this price action happened within this year only. Everyone is awar what happened during 2017 so everyone is very cautious about dump.

[electronicash]

its like the investors forgot that Visa and Paypal had been allowing crypto so the fud is still stronger than what catalyst we have.

it had already dumped. it could actually dip to $20k if it continues to fud about electricity and China ban even though the ban is the same as what they were saying years ago. but if everyone expects this dump to happen because the price had already reached its very top, it's expected to happen. what you can't expect is when exactly can it go up again. June is probably a good month for BTC.

[hatshepsut93]

Well, a lot of things have triggered the dump - China FUD, Elon FUD, recent US regulation FUD, but those things are not the main reason behind the crash. We've seen similar news having little effect in the past.

What happened is just a speculative market cycle. People were buying BTC because they hoped to see something like the 2017 or 2013 boom, when the price was doubling within months or even weeks. "BTC to $150k, BTC to $300k" - these were the goals. But as you can see from the chart, at around $60,000 range the buying was slowing. So, investors decided that the bull market has lost its momentum and it's better to take profit and wait and see what happens next.

Just like the price goes up because of hopes of higher price, it can also go down because of fear of lower price, so the continued selling just fueled more selling. The news helped this sentiment, but they alone can't be responsible for such a big crash.

IMO the era of huge bull runs is over, because when everyone expects that the market will reach some high point and then crash, it would never reach that point, no one wants to be the bigger fool. This time the price started at $10k and topped at $64,500, the next time the difference between start and top would be even lower - maybe 300-400% or less. This is what maturation looks like.

[Darker45]

It is always a combination. But Elon might have indeed triggered it. I'm more than sure things would have been a lot different today had Elon not made that infamous decision.

Anyway, even before Elon released the statement that Tesla does not anymore accept Bitcoin, there was already a correction. It was long overdue, but I guess the overall sentiment was still bullish.

It was only when Tesla's news started spreading around that the price started to spiral down. However, I suppose the severe dumping was not caused solely by Elon. It was largely caused by the spaghetti hands who are reacting emotionally to the news.

[Lorence.xD]

Well, a lot of things have triggered the dump - China FUD, Elon FUD, recent US regulation FUD, but those things are not the main reason behind the crash. We've seen similar news having little effect in the past.

I think the China FUD is going to be the biggest reason for this recent price dump, they have the biggest customer base so banning the services there is definitely going to hurt the market for a short time but the bitcoins will be bought back again in the long run and the prices will recover and continue its climb to another ATH.

[iTradeChips]

IMO the era of huge bull runs is over, because when everyone expects that the market will reach some high point and then crash, it would never reach that point, no one wants to be the bigger fool. This time the price started at $10k and topped at $64,500, the next time the difference between start and top would be even lower - maybe 300-400% or less. This is what maturation looks like.

I feel that in the near future, if you are right. There would be no longer huge ATH. Maybe there would be gradual increases and sudden downs followed by gradual increases again, not what we saw in the past few months where the hype fueled the coin upward. Those who bought at the highs will have to wait for their Bitcoins to give them their profit or risk selling at a loss. Those who are trading with the alts will have the most difficult time as well, in my opinion every alt will be affected by what happened and all of us traders and investors will be more careful trading in the dips (unless you are bold and knows a lot about technical analysis).

[meanwords]

I think this dump is inevitable. The Growth to $50k was just too much and it stays above that for a very long time. Even if Elon Musk did something different, it will still happen. It's just that Elon Musk was holding this dip for a long time. Now that Elon Musk stops supporting Bitcoin, it started to happen.

But hey, lots of cheap coins on the market so I ain't complaining.

[GreatArkansas]

Well, a lot of things have triggered the dump - China FUD, Elon FUD, recent US regulation FUD, but those things are not the main reason behind the crash. We've seen similar news having little effect in the past.

I think the China FUD is going to be the biggest reason for this recent price dump, they have the biggest customer base so banning the services there is definitely going to hurt the market for a short time but the bitcoins will be bought back again in the long run and the prices will recover and continue its climb to another ATH.

In short, we can add this China FUD, China banning Bitcoin is always expected, they always banning Bitcoin for almost every year, nothing is new.

What is on my mind are the retail investors, they got triggered all of those FUD, and they got a weak hands and solf off. They are afraid, that's why we saw a very huge red wicks.

If you observed the outflows of Bitcoin on some exchanges are starting to rise again, a lot of people included huge institutions buying the dips.

[Lorence.xD]

~

What is on my mind are the retail investors, they got triggered all of those FUD, and they got a weak hands and solf off. They are afraid, that's why we saw a very huge red wicks.

They will learn their lessons, I am pretty sure about that, everyone has their first times, I didn't have the same reaction as these newbies when I was one since a lot of my friends taught me that this is just a temporary thing happening so I did get lucky there.

[btc78]

I wonder what really triggered the price of bitcoin to dump this hard. From its ATH of $65k to $30k, that is already more than 50% dump. I don't think Elon Musk is the only one responsible for this because I often read people only blaming him. It's like ghost month came earlier than we expected.

And also, if institutions and many people are buying this dip then who are these people selling their bitcoin all the way down to earlier's dump. If these people are new to crypto and are panic selling, can it really drive the price this low?

same question having in My mind But lucky me that i did not saw the 30 fall late night because if does maybe i panicked and sell all my coins.

Now that i checked is that value climbs back to 40k and also i have to buy now and to get ready for another Pump .

[crwth]

Most whales took some profits, and they have already bought at the dip. I mean, they have a lot of control and power. Additionally, institutional investors have been investing more, and I think it's that time of the year that some people do get profits. I think it could've gone lower. What saved it, I think is the tweet by Elon Musk saying that Tesla has diamond hands. It just increased in price. That's a lot of power for sure.

[Xinarae*]

~

What is on my mind are the retail investors, they got triggered all of those FUD, and they got a weak hands and solf off. They are afraid, that's why we saw a very huge red wicks.

They will learn their lessons, I am pretty sure about that, everyone has their first times, I didn't have the same reaction as these newbies when I was one since a lot of my friends taught me that this is just a temporary thing happening so I did get lucky there.

In fact it is very difficult to give accurate information about the market and do not always understand the huge difference between pump dumps. But when the pump did those who sold made huge profits. Therefore one has to be careful about the market before investing.

[pooya87]

The  "catalyst" is of course the combination of Elon Musk FUD and some other FUD about China banning bitcoin among other things. However, that only started the drop below $55k the rest is due to market manipulators trying to capitalize on the existing fear in the market to empty weak hands' pockets.
Otherwise despite what some people believe a random FUD alone is not responsible for such a big market crash.

[Lorence.xD]

~

In fact it is very difficult to give accurate information about the market and do not always understand the huge difference between pump dumps. But when the pump did those who sold made huge profits. Therefore one has to be careful about the market before investing.

Of course it is difficult to give an accurate information for the market because if it is that easy then we would all be rich by now. I think that being careful when investing should be a given and it isn't needed to be said, I think that anything that has relation to money or finance, we should automatically be careful about it because in this capitalistic world we live in, money makes the difference.

[lifeforcepools]

There was no specific catalyst, it was the sum of the factors

[hatshepsut93]

I think the China FUD is going to be the biggest reason for this recent price dump, they have the biggest customer base so banning the services there is definitely going to hurt the market for a short time but the bitcoins will be bought back again in the long run and the prices will recover and continue its climb to another ATH.

China FUD is fundamentally the most irrelevant one, because nothing really happened, China simply reminded that they have banned their financial service from dealing with crypto. They didn't impose any new restrictions. And they did it because Bitcoin was already crashing, and just like before, anytime there's a huge volatility, China reminds their financial services to stay away from crypto.

[tranthidung]

The main catalyst is the lack of serious correction since 2020. The next few weekly candles will make things clearer. I am keen on a sideway time after this massive bloodbath.

How do people can think Bitcoin will rise up forever without significant Big Red Candles (weekly)? They only talk about Big Green Candles.

Any coincidence for 2017 and 2021 markets?

Bloodbaths in the middle of bull run are preparations for the second part of Bitcoin parabola. The next bull phase of Bitcoin would be began in August and blossom might be seen since November.  

[Wexnident]

I think the most obvious one here would be the Musk tweet, though it isn't the only one. Like it or hate it, Musk has quite the influence towards the behavior of some investors, and when those investors move, others would also eventually follow cause of FOMO. Though the dump shouldn't also be reasoned out only cause of Elon, a correction was bound to follow after the ATH way back then, and the price has only continuously fell down slowly after that. There was also all kinds of FUD now after musk tweet, so that's also a plus for a reason.