The economy of Bitcoin

[RIFAT001]

What is the reason for the decline in the price of cryptocurrency Bitcoin? It is unimaginable that it will suddenly decrease by 2.6 billion. If this is reduced, the price of Bitcoin can go below 30 thousand?

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[rofik28]

What is the reason for the decline in the price of cryptocurrency Bitcoin? It is unimaginable that it will suddenly decrease by 2.6 billion. If this is reduced, the price of Bitcoin can go below 30 thousand?

Doing such dumping will reduce the price of Bitcoin a lot. Will it increase a lot if you pump again?

[Spack17]

I don't think that there is a reason behind this amount of fall in Bitcoin price. It is just about the high volatility. We just don't know what can happen and when. But this kind of a fall was totally unexpected for most people I guess. Bitcoin price literally crashed in half an hour. I'm thankful that it didn't go down more. I really wouldn't like to see the price at $30k again even if it would be a good chance to accumulate. I think that the price needs to reach a new ATH as soon as possible.

[jackg]

I thought the government paid $30 to each El salvadorian citizen, I'm assuming that's what lead to the initial sell off...

An additional sell off wouldn't be a surprise to me but I doubt it'll be half - the longer we stay around this current zone though the more chance we have of just going back up.

There are 6.5 million el salvadorians with a average gdp per person of less than $5000 so...

[herurist]

I don't think that there is a reason behind this amount of fall in Bitcoin price. It is just about the high volatility. We just don't know what can happen and when. But this kind of a fall was totally unexpected for most people I guess. Bitcoin price literally crashed in half an hour. I'm thankful that it didn't go down more. I really wouldn't like to see the price at $30k again even if it would be a good chance to accumulate. I think that the price needs to reach a new ATH as soon as possible.

yes, the volatility of bitcoin is very high and it is very difficult to predict the movement of bitcoin and yesterday is one proof that it is very difficult to guess which direction btc will go, after touching the figure of $ 52900 btc like a rollercoaster free fall to $ 42900 in only a few hours.
There is $60 billion in global trading volume on various crypto exchanges around the world.
BTC is down more than 8 percent in a relatively short period of time, and many other crypto markets have also experienced significant declines against the US dollar.

I really regret this but on the other hand I am grateful because I can add assets at a fairly hefty price.

[Shenzou]

What is the reason for the decline in the price of cryptocurrency Bitcoin? It is unimaginable that it will suddenly decrease by 2.6 billion. If this is reduced, the price of Bitcoin can go below 30 thousand?

It is not always justifiable to how the market behaves and why the price fell down the way it did, but my guess is that a lot of people have waited for the day where Elsalvador officially launch bitcoin as their league tender as the news itself  up to the 7th has driven the price to more than 50k at which point a lot of people have started selling which created the snowball effect which lead to the price going down.

[blockman]

You're talking about the market cap of the whole crypto market. And if you're thinking $30k or lower, always think of any possibility whether it's a higher price or lower price. This is bitcoin to us that is very volatile and whatever has been the reason for the market crash, it always happens and is not questionable at least for those that have been in the market for quite a while. Many news is there related to the crash and you can search it to see what are those. You can use the keyword El Salvador, Coinbase, as related to Coinbase, they've been messaged by the SEC that they're about to get sued for a particular reason.

[Hydrogen]

With the inception of bitcoin futures trading, the door could be open to bitcoin and crypto becoming more influenced by short sellers who profit from prices diminishing.

One example of this could be Elon Musk claiming short sellers tried to crash the value of tesla stock, twice. Short selling can definitely have an impact on multi billion dollar markets.

There is a reason and motive behind every large market movement which experienced and knowledgeable traders can pinpoint. Large price movements are never random events.

I would guess the most recent decline occurred as a response to el salvador adopting bitcoin. Not due to el salvador dumping coins to fund citizen airdrops, but rather due to large institutions like banks dumping coins due to them not being fans of the trend.

[zanezane]

That's because there's a lot of people in this crypto space and there are people that always sells bitcoins everyday so there's always times when bitcoin goes down as those that was sold are reintroduced to the current supply and with high supply, it could equate to lower demands.

[Reid]

There are just two reasons I can think of. El Salvador or its the norm of Bitcoin which happens a lot.
$52k three days ago then dumped to $48k for profit. It's normal.
But panic came and small investors tried to sell so it drops again to where we at now.
Or, is it like someone or a group is trying to prevent the adoption of El Salvador using the volatility to create panic and make them lose confidence to it's technology.

[cabron]

The correction is very timely when El Salvador also bought 200BTC during the day while the bitcoin legal tender law took effect. This correction is just waiting to pan out I guess.  BTC price is retracing up fast after it dives from $43K too, I guess the whales took advantage of it too.

You're talking about the market cap of the whole crypto market. And if you're thinking $30k or lower, always think of any possibility whether it's a higher price or lower price. This is bitcoin to us that is very volatile and whatever has been the reason for the market crash, it always happens and is not questionable at least for those that have been in the market for quite a while. Many news is there related to the crash and you can search it to see what are those. You can use the keyword El Salvador, Coinbase, as related to Coinbase, they've been messaged by the SEC that they're about to get sued for a particular reason.

This threat to Coinbase also seems to have triggered this dip so it's adding up a fud for the market.

[CryptopreneurBrainboss]

What is the reason for the decline in the price of cryptocurrency Bitcoin? It is unimaginable that it will suddenly decrease by 2.6 billion. If this is reduced, the price of Bitcoin can go below 30 thousand?

Two theories here, first involving the market going opposite direction of popular opinions due to whale manipulations. It was the first day of Bitcoin been a legal tender in El Salvador so while everyone would be expecting a pump, the whales seize the opportunity to cause some tensions in the market by manipulating it and use the opportunity to get some discount coins but since the actual cause of the market crash can't be read we could only speculated.

Second theory involves retail investors/traders speculating on a possible dip in the market through sell off by citizens of El Salvador as the news of the government airdropping $30 in bitcoins to citizens who sign up for its national digital wallet takes effect as Bitcoin became a legal tender. It's no coincidental as on the day of this happening, the market crashes, it just had to happen as the sentiment around the market would had been there's going to be a selloff from airdroppers instead this will result from the retail investors/traders trying to secure profits or cut losses for late comers.

[blockman]

You're talking about the market cap of the whole crypto market. And if you're thinking $30k or lower, always think of any possibility whether it's a higher price or lower price. This is bitcoin to us that is very volatile and whatever has been the reason for the market crash, it always happens and is not questionable at least for those that have been in the market for quite a while. Many news is there related to the crash and you can search it to see what are those. You can use the keyword El Salvador, Coinbase, as related to Coinbase, they've been messaged by the SEC that they're about to get sued for a particular reason.

This threat to Coinbase also seems to have triggered this dip so it's adding up a fud for the market.

Yeah, likely. When there is some negative news like this. The market always reacts that fast. I think that the market has stabilized again and after just a couple of days or a week, we're going to see it again in an increasing manner.

Same thing as it goes up, the number of people in this case is selling their bitcoin to take profit, I don't think that there's anything to worry about when it comes to this kind of dumps because it will go back up at the end of the day or the month, it's an appreciating asset after all.

There's nothing to worry about but those who have bought at the top again thinking that the increase will continue up to $55k-$60k, they're thinking of how they shall recover if they're only new to the market.

[verita1]

If OP maintains that thought, he could at some point panic and sell his bitcoin.
Staying calm is a rule of thumb, then study the circumstances of the sudden drop and move on. The crypto space has not been stopped by the falls of bitcoin, on the contrary, the opportunities to better develop technology are growing every day.

Bitcoin is advancing by leaps and bounds. An example of them is the news that I read recently.
The BBVA bank will offer its clients the investment service in bitcoin starting at 10K in Latin America.

https://www.bbva.com/es/bbva-suiza-lanza-new-gen-la-cuenta-digital-que-facilita-las-inversiones-en-los-sectores-con-mayor-impacto-en-el-futuro/

[LUCKMCFLY]

What is the reason for the decline in the price of cryptocurrency Bitcoin? It is unimaginable that it will suddenly decrease by 2.6 billion. If this is reduced, the price of Bitcoin can go below 30 thousand?

The reasons why the price of BTC goes down can be many, in fact there is always a news that comes out when the important movements of BTC occur, the reason why it continues to fall or rise may also be because of the whales, because of the emotions of the people and for some fundamentals.

That the price of BTC can go down if it is very possible, everything is in the possibilities, sometimes the btc falls due to mere market speculation, not only due to news or some event, it may be due to speculative action of the market. For now $ 30k I do not see it close, but it cannot be ruled out, it may occur due to the high volatility, but knowing how to read the volume it is possible to realize that there is something difficult to happen.

[Ausgewielt]

I think the possibility of bitcoin price fall bellow 30k is very small. In my opinion, actually we are close to bullish market trend. The extreme volatility of bitcoin price is commonly happen. I have been investing in bitcoin since few years ago and I realize that it is like a psychological game, don't let anything what happens in the price chart makes you emotional and afraid. Just keep on your investment plan, strategy and calculation. Actually I think this condition is good because the bigger volatility of bitcoin means that traders are very enthusiast for trading.

[palle11]

What is the reason for the decline in the price of cryptocurrency Bitcoin? It is unimaginable that it will suddenly decrease by 2.6 billion. If this is reduced, the price of Bitcoin can go below 30 thousand?

I don't think the reasons for the fall were really adequate or excusable to say the least but the volatility was high and requiring some kind of correction. I won't be surprise with the $30,000 because of this recent drop could have gone any length down and there are some speculation for more drop.

But this kind of a fall was totally unexpected for most people I guess. Bitcoin price literally crashed in half an hour.

No it was not totally unforseen. Technically, the technical analysis could show moving average, RSI and some others on over bought level and usually such times you can expect some corrections and I think that was what happened.

[Alisha-k]

It's just the law of supply and demand. Outside news this is one of the strongest determinant of any commodities value over any period of time. Put it this way how much the last bidder is willing to offer and how many bidders are willing to buy at that very price or even higher will determine the direction of any commodity. I don't know if this is helpful

[Hippocrypto]

There's a lot of reasons to consider with the current decline of btc price, it could be a huge amount bought by a whales that's why more holders selling their assets.
Volatility of crypto market was also triggered by this recent trend, that's why possible panic holders also affected emotionally so we experienced faster price downturn.
We should be careful on this situation, because fud usually starts to eradicate when price continues to drop.

[magnum1010]

What is the reason for the decline in the price of cryptocurrency Bitcoin? It is unimaginable that it will suddenly decrease by 2.6 billion. If this is reduced, the price of Bitcoin can go below 30 thousand?

This market is very volatile and even such a giant Bitcoin is not an exception. Actually, the market was too overheated so we were to expect this declining. We can see Bitcoin under 30 000$, but we should remember that even then this mainstream currency will definitely recover as it is not just a useless dummy. It is used as means of payment in different countries and companies, so we can trust this currency.