What cause Bitcoin to drop up to 42k$?

[Twinscoin2017]

Bitcoin price is still below 200 Daily MA/moving average which means very weak. Is this the time that we can see bitcoin below 40k$ or back below 30k$ is there something wrong or negative feedbacks that cause this dropping of the price? Do you have an idea about this dropping guys?

[Poker Player]

I guess the trigger was the Evergrande crisis. Like it or not, Bitcoin is a financial asset that is susceptible to the ups and downs of non-crypto markets. People see a hint of a crisis and sell because they get scared, then as the asset prices go down because people are selling, more people get scared and sell. In turn, leveraged positions get liquidated, etc.

It's a good time to buy, if you're going long term, which is as it should be.

[Cryptoshops]

Stock markets across the world are down and the Chinese property group called Evergrande caused the Asian markets to fail and then the US and Europe markets followed suite becuase of concerns the huge property group might go bust as they are in so much debt. Crypto also tends to follow the  stock markets around the world hence the sharp decline.

[kanayaTabitha]

Bitcoin price is still below 200 Daily MA/moving average which means very weak. Is this the time that we can see bitcoin below 40k$ or back below 30k$ is there something wrong or negative feedbacks that cause this dropping of the price? Do you have an idea about this dropping guys?

Probably it's because this news. you can check it here

https://www.coinhighlight.com/2021/09/how-chinas-property-market-could-trigger-a-crypto-crash/

China's bad news is always success bring market to bleeding market days. i think it's because crypto possesion from china is big percentage so when the china community are doing mass selling, it will impact to the world wide crypto market.
Hope it will recover soon.

[zanezane]

Stock markets across the world are down and the Chinese property group called Evergrande caused the Asian markets to fail and then the US and Europe markets followed suite becuase of concerns the huge property group might go bust as they are in so much debt. Crypto also tends to follow the  stock markets around the world hence the sharp decline.

That's a bit over the top don't you think? I mean that's crazy to think that crypto follows the stock market because that means that crypto isn't as independent as we think it is because it's basing it's movement to the stock market. Probable cause for the dips in prices is probably that there's more people that's taking some profit and there's also the news of a dormant address that's started moving.

[Cryptoshops]

Stock markets across the world are down and the Chinese property group called Evergrande caused the Asian markets to fail and then the US and Europe markets followed suite becuase of concerns the huge property group might go bust as they are in so much debt. Crypto also tends to follow the  stock markets around the world hence the sharp decline.

That's a bit over the top don't you think? I mean that's crazy to think that crypto follows the stock market because that means that crypto isn't as independent as we think it is because it's basing it's movement to the stock market. Probable cause for the dips in prices is probably that there's more people that's taking some profit and there's also the news of a dormant address that's started moving.

If you look at the crypto ups and downs  throughout its history it does  follow the stock markets pretty closely Here is an Item from Forbes "Bitcoin is meant to be an uncorrelated asset and this is/was a positive. However, it is clear that right now bitcoin correlates with stocks very closely

https://www.forbes.com/sites/investor/2020/05/13/bitcoin-and-stocks-correlation-reveal-a-secret/

[DapanasFruit]

I guess the trigger was the Evergrande crisis. Like it or not, Bitcoin is a financial asset that is susceptible to the ups and downs of non-crypto markets. People see a hint of a crisis and sell because they get scared, then as the asset prices go down because people are selling, more people get scared and sell. In turn, leveraged positions get liquidated, etc. It's a good time to buy, if you're going long term, which is as it should be.

I was a little surprised when I opened CMC today seeing that Bitcoin is now hovering around $42K with more pressure that it can go down some more though getting into $30K can already be too much. Now, I searched for what can be the biggest reason and yes I also read about that Evergrande thing which is actually a China-based real estate property developer the biggest as they say in the country. What comes to my mind is what the heck has that to do with Bitcoin...if there can be a huge problem in that Chinese property developer why would Bitcoin be thrown with it as well? Should not the BTC become the beneficiary of that company's fall?  The answer is we don't know for sure.

[UKprod]

Like the replies mention, many predict that this is a result of the Evergrande Crisis. However, having said this, Bitcoin market is very volatile and to a lot of extent immature. It needs a lot of time before it can come into maintstream. Until then you could expect it to crash like this. However, this might just be the right time to invest in Bitcoins since there is a dip right now.

[Reatim]

I guess the trigger was the Evergrande crisis. Like it or not, Bitcoin is a financial asset that is susceptible to the ups and downs of non-crypto markets. People see a hint of a crisis and sell because they get scared, then as the asset prices go down because people are selling, more people get scared and sell. In turn, leveraged positions get liquidated, etc.

Yup and this is a Domino effect , once some holder sells their coin and when the market shows dropping then others will follow and this makes the market shows the volatility , but others took advantage as they are buying when dip is happening like now.

It's a good time to buy, if you're going long term, which is as it should be.

Sad that all my funds are inside my folio, all my stocks USDT was converted when the price of bitcoin goes down to 30k level.

Hope i will find source of funds before this market strikes back,

[electronicash]

Like the replies mention, many predict that this is a result of the Evergrande Crisis. However, having said this, Bitcoin market is very volatile and to a lot of extent immature. It needs a lot of time before it can come into maintstream. Until then you could expect it to crash like this. However, this might just be the right time to invest in Bitcoins since there is a dip right now.

that is what they are saying. evergrande was compared to Lehman Brothers collapse but it's no way near to that knowing that CCP could intervene to the company before it will ever happen. but this is evergrande collapse is likely done deliberately to bring markets down, the CCP didn't intervene. it's affecting investors and dragging the crypto market as well.

maybe they really need to cripple all markets just sanctioning everyone along with AUS.

[rhodelmabanal]

Bitcoin price is still below 200 Daily MA/moving average which means very weak. Is this the time that we can see bitcoin below 40k$ or back below 30k$ is there something wrong or negative feedbacks that cause this dropping of the price? Do you have an idea about this dropping guys?

i heared a news an hour ago that
this particular drop was caused by a combination of factors that may have made this drop more severe, Noble theorizes, from excitement about low-quality coins, to negative remarks from Elon Musk, to China's latest crack down on crypto services. I hope this will help you guys understand why btc price drop down to 42k$.

[pooya87]

Fear Uncertainty and Doubt.

People sometimes ignore the power that the propaganda has, I will try to write something about the events of past 2 years when price is in 6 digits territory. But for now I stick to saying that there has been a lot of effort that only started recently trying to turn bitcoin into an "asset" that is also linked to every asset they are involved in so that when their assets fail and dump the fleeing money doesn't go to bitcoin as "safe haven".
They have been successful to some extend as we can see today and we saw at least 3 more times that bitcoin reacted to other markets while there has never been any kind of connection whatsoever.

The good news is that since there really isn't any connection the propaganda has been backfiring. We saw in 2020 that a lot of money came into bitcoin as bitcoin recovered while their assets (mainly stocks) were still struggling and people realized the drop was a market manipulation.

[oktana]

Stock markets across the world are down and the Chinese property group called Evergrande caused the Asian markets to fail and then the US and Europe markets followed suite becuase of concerns the huge property group might go bust as they are in so much debt. Crypto also tends to follow the  stock markets around the world hence the sharp decline.

That's a bit over the top don't you think? I mean that's crazy to think that crypto follows the stock market because that means that crypto isn't as independent as we think it is because it's basing it's movement to the stock market. Probable cause for the dips in prices is probably that there's more people that's taking some profit and there's also the news of a dormant address that's started moving.

Even though Bitcoin and the stock market are different, there's a connection that holds both of them. They are both in the economy section, yet, many stock investors hold Bitcoin as an asset too. There should be many if you want to list. It's like the central bank of a country having financial crisis, and because people have both fiat and Bitcoin, you'll see how Bitcoin price will go up because they want to convert their remaining fiat to Bitcoin.

[jossiel]

Bitcoin price is still below 200 Daily MA/moving average which means very weak. Is this the time that we can see bitcoin below 40k$ or back below 30k$ is there something wrong or negative feedbacks that cause this dropping of the price? Do you have an idea about this dropping guys?

World market is down.

And here goes again the correlation of bitcoin and the crypto market that sometimes happening. Although in reality there's no straight connection of bitcoin and stocks but I've seen it a few times that it did.

[rodskee]

The natural thing, because it was a correction I didn't hear any bad news but bitcoin dropped to $42k, I think with the high price of bitcoin it had an impact on the correction as well.

Correction? lol this only happens if there is a Big pump but what we have now? stabling at 45-48k this whole week and now we are having correction? seems like not ethical to believe.
maybe we are now in a good position because the market is recovering now , and looking for some grow back in the next 7 days.

[pooya87]

World market is down.

And here goes again the correlation of bitcoin and the crypto market that sometimes happening. Although in reality there's no straight connection of bitcoin and stocks but I've seen it a few times that it did.

No, you have never seen this correlation ever. What you saw was the propaganda I talked about above in the media and didn't follow it yourself and didn't do any research.

Last time we had this propaganda was during the pandemic when COVID broke out. Bitcoin got dumped because the propaganda had convinced everyone that bitcoin is linked to other assets and as they were dumping then bitcoin should have dumped also. But it backfired as bitcoin was done dumping and it reversed back up while everything else continued dumping. While bitcoin went up 100% above its pre-dump price, those other assets were still trying to recover a tiny portion of what they had lost. This little fact attracted a lot of money from those assets and is one of the reasons why bitcoin price is currently 1306% above its bottom price at the peak of propaganda while many of those other assets are not even at their pre-dump prices, most of stocks have gained very little after the recovery and so on.

Now you tell me again where exactly did you see this correlation multiple times?!!

[OgNasty]

Bitcoin price is still below 200 Daily MA/moving average which means very weak. Is this the time that we can see bitcoin below 40k$ or back below 30k$ is there something wrong or negative feedbacks that cause this dropping of the price? Do you have an idea about this dropping guys?

Just traders doing what traders do.  You couldn't expect a clean golden cross without some profit taking to setup for the next leg.  While these signals are great, they are usually preyed upon for quick and easy profits.  That doesn't mean they are invalid signals, just that there's always got to be room for the traders to make money, or at least to try.  If we got down below $30K I would agree that something horrible has happened.  For now, we should just chalk it up to typical volatility. 

[marine4u]

that is what they are saying. evergrande was compared to Lehman Brothers collapse but it's no way near to that knowing that CCP could intervene to the company before it will ever happen.

I suspect that there is a reason for a panic situation that could affect the bitcoin price as the Evergrande debt pump and the effects surrounding its FUD could begin when the Federal Reserve meeting happenning. If they plan to ease their central bank bond purchases, that would be another divergence that could yield a major bull run for bitcoin. currently, bitcoin daily MA is still around 200 and very weak showing that the state is not yet positive, but the accumulation is growing.

[buwaytress]

I'm still loyal to that 200MA. Yes, was expecting a bounce, but it's more often than not a keen and consistent line that price shouldn't stray too far from, and that bounce has to be coming.
 
I did say yesterday I'd be worried if we do go sub-40k and stay there a week, but volumes aren't enough to sustain the bears even at this stage so it's at best temporary exhaustion until Q4 comes around the corner.

[Lucius]

Just when one thinks we have got rid of China they reappear and cause panic, only this time not directly with something to do with cryptocurrencies, but with obviously a very big impact on the real estate and stock markets due to the collapse of one of their large companies. Given that there is evidence that they knew the company was in trouble at least since 2012, the question is why did they let the debts pile up?

Maybe because, as always, they will use this situation to buy on foreign markets at a discount, a strategy that obviously works very well for them.