Reason for bitcon flash drop.

[Coin_trader]

A financial derivative(like the ETF mentioned above) cannot bring the Bitcoin price down.
Bitcoin futures are just placing a bet about the future Bitcoin price.That doesn't mean that the BTC futures have any direct influence over the price.Having lots of Bitcoin shorting creates some expectations that the future Bitcoin price might be lower than the current BTC price,but that doesn't mean that those expectations will become reality.
The current BTC price drop is caused mostly by the hodlers and traders selling their BTC and taking the profits.This means that they don't think that bull run will continue towards 70K USD,so they are selling now,before the price drops.

Technically speaking you're right and agree to your statement 100%. But there's always a reason behind this flash crash. I don't believe in coincidence since this flash crash or pump always everytime a bitcoin option contracts are closed to expire.

This is just my theory and might be happening, Some group of whales bet on ETF while holding Bitcoin at the same time, They will manipulate the price of Bitcoin by giving a buy/sell pressure on exchange which will result for exchange triggering to sell-off as a reaction. They timing it so that they can gain on there ETF during its closing. Doing this kind of manipulation is safe for them since crypto exchange is not fully regulated and there's no way to verify that they are the one doing this manipulation. This is the common scenario on a volatile crypto market so no one will gonna suspect on this kind of dirty job.

[taufik123]

there will be no barrier that is really a barrier to bitcoin success.
Remember when the bitcoin price was around $3000, Bitcoin was heavily criticized as a scam investment and would go down to worthless.
Some speculations are deliberately made to lower the price of bitcoin.
the decline this time was even insignificant and bitcoin still found its bounce.
Bitcoin will hit a new ATH again and any barrier will be broken by bitcoin.

[mindrust]

They manage to keep gold's price low for decades. If they want this for bitcoin, they can probably do it. But in this particular situation, I think it was more of a fat finger thing. I believe some dude wanted his lambo so he cashed out huge amounts or some other big whale wanted to destroy longs. It used to happen a lot more.

[isaac_clarke22]

"Plunges" is kind of an exaggerated word. Right now is just went back up to 60k+, so are we now calling it surge immediately? It is Bitcoin just being Bitcoin, aside from the ETF as others mentioned above. It is not even something worth discussing right now.
The price moves and the news goes crazy over it.

[Finestream]

"Plunges" is kind of an exaggerated word. Right now is just went back up to 60k+, so are we now calling it surge immediately? It is Bitcoin just being Bitcoin, aside from the ETF as others mentioned above. It is not even something worth discussing right now.
The price moves and the news goes crazy over it.

Expect that in every price increase or price drop for bitcoin, it has its corresponding reason to discuss which i think is not needed though since we all know that bitcoin price will be in an upward trend. And with this previous bitcoin flash drop, i think if it caused by some investors who start cashing out their profits, well its just normal. The market will surely react once there are sudden selling of coins. But i don't agree why an ETF causes bitcoin to crash. On thing i am certain, bitcoin will never be affected that much and will always come up with its price surging.

[Fatunad]

"Plunges" is kind of an exaggerated word. Right now is just went back up to 60k+, so are we now calling it surge immediately? It is Bitcoin just being Bitcoin, aside from the ETF as others mentioned above. It is not even something worth discussing right now.
The price moves and the news goes crazy over it.

Expect that in every price increase or price drop for bitcoin, it has its corresponding reason to discuss which i think is not needed though since we all know that bitcoin price will be in an upward trend. And with this previous bitcoin flash drop, i think if it caused by some investors who start cashing out their profits, well its just normal. The market will surely react once there are sudden selling of coins. But i don't agree why an ETF causes bitcoin to crash. On thing i am certain, bitcoin will never be affected that much and will always come up with its price surging.

Im aint already surprised on how things do works or on how this market behaves because everything is really totally random and there's no way that you could really be able to find out some reason on whats happening behind the curtains because the price could move on its own without really any basis
or you couldnt really tell but rather it would be more worth if you do mind on how to get in or buyback with cheaper bitcoin because that opportunity
doesnt really come in a while specially if theres some huge correction.

[BuNga_cute]

"Plunges" is kind of an exaggerated word. Right now is just went back up to 60k+, so are we now calling it surge immediately? It is Bitcoin just being Bitcoin, aside from the ETF as others mentioned above. It is not even something worth discussing right now.
The price moves and the news goes crazy over it.

Expect that in every price increase or price drop for bitcoin, it has its corresponding reason to discuss which i think is not needed though since we all know that bitcoin price will be in an upward trend. And with this previous bitcoin flash drop, i think if it caused by some investors who start cashing out their profits, well its just normal. The market will surely react once there are sudden selling of coins. But i don't agree why an ETF causes bitcoin to crash. On thing i am certain, bitcoin will never be affected that much and will always come up with its price surging.

Im aint already surprised on how things do works or on how this market behaves because everything is really totally random and there's no way that you could really be able to find out some reason on whats happening behind the curtains because the price could move on its own without really any basis
or you couldnt really tell but rather it would be more worth if you do mind on how to get in or buyback with cheaper bitcoin because that opportunity
doesnt really come in a while specially if theres some huge correction.

It is very difficult to find out the real reason for the movement of Bitcoin, because Bitcoin moves very fast and just happens. That is why
the risk of investing in Bitcoin is very high, because it is very difficult to predict Bitcoin price movements. Instead of worrying about why
the price of Bitcoin is going down, we should be able to move quickly to buy Bitcoin,  because of how deep the price of Bitcoin has fallen.
If we are able to be patient holding Bitcoin, then making a profit is only a matter of time. That's why I always buy more Bitcoin when there is
a correction.

[JakobFugger]

Bitcoin price is always a stress test. At certain times some barrier breaks and many need to change the forecast. There will always be big falls and big rises in the opening or closing times of some big market. Bitcoin works 24 for 7, but markets that put usd in or take it out don't work. So, of course, several factors lead to these sudden changes, but if they occur at the time of opening or closing of a large global market, they cannot be attributed to a single fact, but rather to a readjustment of the target price.

[arwin100]

According to this article Bitcoin price plunge wipes hundreds of billions from global cryptocurrency markets
, the dropped was may cause by long term investors trying to cash out for profit, but one thing that coincides with the timing is the Direxion Bitcoin Strategy Bear ETF which is betting against the success of bitcon.

Here's the exact text from the article.

What caused the drop in Bitcoin price?

The crash is partly driven by long-term holders selling at a high to take home profits, according to blockchain data. That’s typical following a price spike.

But it also coincided with financial company Direxion filing for a new bitcoin exchange traded fund (ETF) that would bet against the future price of the crypto.

It will be called the Direxion Bitcoin Strategy Bear ETF, according to its filing with America’s Securities and Exchange Commission.

Is this a hindrance to the success of bitcoin in the future?

How and why?

That article is right since not everyone will still hold once the profit is there and sometimes the word new ATH is one of the best time for whales to take their profit that's why after that level achieve the sudden drop happen and we need to be mindful on that since correction always happen and its good to ride with the whales to buy again to earn on next pull up.

Maybe for now that rejection on ETF is the hindrance since it can cause negative effect to the bitcoin but don't get afraid on it since its temporary and for sure people will forget about it.

[Zanab247]

The reason for bitcoin flash drop is because the year is very approaching that many investors are everywhere to get their own profits before the end of the year.
This season always cause bitcoin price to decrease in the market because there are many traders who really understood this season very well, that the price of bitcoin will soon increase higher in this month of November, it is better for them to hold for the price to increase higher before release them for sale. Before the end of this week bitcoin price will hit $70k despite the decrease many long term investors are going through  now in the market. This price drop will not last more than 3 days before the price will increase higher for bitcoin users to achieve their profits.

[panukurap]

Seeing the results that have been achieved in previous marriages made me dare to make someone's decision to marry her. This is a big responsibility and not playing games. Therefore I will not interfere with the two of each other. The house is also tight and liked by  many people because it is easy to find and doesn't make us all get lost in the forest. Honestly, this is the first invitation after a long time, I'm also happy to be a happy family.

[uneng]

This is an important point from the article:

At the end of 2020, the biggest 10,000 bitcoin holders held around 27 per cent of the total 18.6 million coins in circulation.

This makes Bitcoin susceptible to “systemic risk”, researchers at the National Bureau of Economic Research wrote.

As we can see there are few people holding too many coins. That means these individuals have too much power in crypto market to cause big fluctuations like the most recent one which pushed bitcoin down to 58,000$. But the good news is that after each crash, the power these investors have decreases considerably, as they are selling coins to someone else (probably new investors). On long run bitcoins will be splitted among more hands, so the volatility is going to decrease and sharp crashes will be less likely to happen.

[24Kt]

The reason for bitcoin flash drop is because the year is very approaching that many investors are everywhere to get their own profits before the end of the year.
This season always cause bitcoin price to decrease in the market because there are many traders who really understood this season very well, that the price of bitcoin will soon increase higher in this month of November, it is better for them to hold for the price to increase higher before release them for sale. Before the end of this week bitcoin price will hit $70k despite the decrease many long term investors are going through  now in the market. This price drop will not last more than 3 days before the price will increase higher for bitcoin users to achieve their profits.

You are like very sure here that bitcoin will achieve the $70k this week. But, everyone is free to speculate so let us see if this prediction will happen very soon. But these 'flash' drops do happen many times, with reason or no reason, as these are already part of the trading market. It is up to the trader how he will take advantage of those price changes. Also, in every rise or drop, there are several reasons why it happens, I can't attribute it to only one factor. They are combination of major and minor events in the market.

[Fortify]

According to this article Bitcoin price plunge wipes hundreds of billions from global cryptocurrency markets
, the dropped was may cause by long term investors trying to cash out for profit, but one thing that coincides with the timing is the Direxion Bitcoin Strategy Bear ETF which is betting against the success of bitcon.

Here's the exact text from the article.

What caused the drop in Bitcoin price?

The crash is partly driven by long-term holders selling at a high to take home profits, according to blockchain data. That’s typical following a price spike.

But it also coincided with financial company Direxion filing for a new bitcoin exchange traded fund (ETF) that would bet against the future price of the crypto.

It will be called the Direxion Bitcoin Strategy Bear ETF, according to its filing with America’s Securities and Exchange Commission.

Is this a hindrance to the success of bitcoin in the future?

How and why?

I'm not sure it will have any effect on the price of Bitcoin long term, but it definitely seems like mass market manipulation if a hedge fund was involved. The fact that the price recovered as fast as it dropped indicates that there is either a massive pool of buyers ready to snap back up to around the current price or that the whole trade was an illusion designed to provoke mass selling. If it was the latter then we need to find out the exchanges that were involved because it would seem that they are part of the reason and possibly trying to defraud the market by forcing the price down - so they can buy back in at a cheaper price.

[yhiaali3]

ETF cannot be a hindrance to the success of Bitcoin in the future, it is possible of course to have negative effects on Bitcoin and cause Bitcoin some stumbles but of course this will not lead to the collapse of Bitcoin, Bitcoin is much stronger than that, you can see how the price fell to 30k and then It came back and crossed 67K in a few months, this is an indication of the strength of Bitcoin, in addition to that, Bitcoin is not based on speculation only, but Bitcoin is a usable currency and has a big project that was created to solve the big problems that exist in the banking financial system, so I don't see that there is anything that can Being a hindrance to Bitcoin right now.

[Wysi]

ETF cannot be a hindrance to the success of Bitcoin in the future, it is possible of course to have negative effects on Bitcoin and cause Bitcoin some stumbles but of course this will not lead to the collapse of Bitcoin, Bitcoin is much stronger than that, you can see how the price fell to 30k and then It came back and crossed 67K in a few months, this is an indication of the strength of Bitcoin, in addition to that, Bitcoin is not based on speculation only, but Bitcoin is a usable currency and has a big project that was created to solve the big problems that exist in the banking financial system, so I don't see that there is anything that can Being a hindrance to Bitcoin right now.

Yes bitcoin cannot be manipulated by NFT or even any other minor events and moreover the only possibilities of bitcoin dump would be some strict action from government of China or USA and that too it would be temporary dump and it would bounce back like we have experienced in the past.

[nibor]

A Bear Bitcoin ETF would not be such a bad bet.

As assuming it tracked bitcoins using the CME futures there is a 10-20% per year roll benefit.

Meaning that the ETF return would not be the same a -BTC price but would be -BTC price +15% per year.

So as long a Bitcoin went up by less than 15% a year you would make money. So you are betting Bitcoin will below $100k in 3 years time.

A brave bet but not an unreasonable one.

Dec13->Dec17 it went from $1000 to $700

[fiulpro]

According to this article Bitcoin price plunge wipes hundreds of billions from global cryptocurrency markets
, the dropped was may cause by long term investors trying to cash out for profit, but one thing that coincides with the timing is the Direxion Bitcoin Strategy Bear ETF which is betting against the success of bitcon.

Here's the exact text from the article.

What caused the drop in Bitcoin price?

The crash is partly driven by long-term holders selling at a high to take home profits, according to blockchain data. That’s typical following a price spike.

But it also coincided with financial company Direxion filing for a new bitcoin exchange traded fund (ETF) that would bet against the future price of the crypto.

It will be called the Direxion Bitcoin Strategy Bear ETF, according to its filing with America’s Securities and Exchange Commission.

Is this a hindrance to the success of bitcoin in the future?

How and why?

This was posted on October 29.
Today : November 2nd we are actually seeing a positive growth, like right now if you analyze the market I think it's not bad for the overall health of Bitcoins.

That's just how investments work, when the price rises people usually sell their holdings for some money and when the price goes down it's usually balance by other, new investors, therefore if we are talking about this situation here, it's not at all a bad one, it's pretty normal.

As you can clearly see that the price bounced back up and soon enough we might see bitcoins hitting heights in 2022.

Plus people are rolling their investments in futures as well. The companies also sell something like micro futures as I have heard.

It's nothing to be worried about, it's a healthy market chart.

[sirminesalot]

"Plunges" is kind of an exaggerated word. Right now is just went back up to 60k+, so are we now calling it surge immediately? It is Bitcoin just being Bitcoin, aside from the ETF as others mentioned above. It is not even something worth discussing right now.
The price moves and the news goes crazy over it.

I agree it's too much if using that word for just a usual correction, the price is already recovering right now and the bull run seems not over yet.
The media is always making bad news whenever the price of bitcoin going down a bit and starts link the unrealted problems to the price decrease.
We should be cling firmly about the market and it won't down that easy with such a little or unrelated news.

[isaac_clarke22]

~

Hold your horses there, buddy. Don't be too hasty buying one. You already said that it is very difficult to predict it, so why not wait for a bit for more dips, before deciding to buy? Just hold if it does not seem to be that worth the buy for you. I ain't buying one for now.

~

In the usual social media platforms, Bitcoin just went down by 1k and every crypto news are now claiming to be crypto experts.