Why is the price of BTC dropping?

[jaberwock]

I wouldn't worry so much about the current bitcoin price. Right now BTC is at 39,000 USD, which seems quite healthy in my opinion given the current state of the world. You are comparing the price to the ATHs from last year, but the world has changed since. We are facing a major conflict with the Russia-Ukraine war, also inflation rates are rising compared to last year. Even before the Ukraine war the bitcoin price was lower than it is today. No reason to panic as long bitcoins manages to withstand all that downward pressure. In Europe for example the Russia sanctions are going to hurt the economies. Already now we see a double of the fuel prices in two weeks. This is going to increase inflation even more. It's just a matter for the world to go back to normality and for bitcoins to rise again.

Unfortunately people see every little thing as a chance to go up, and every big thing to see it go down. That is one of the main reasons why people are shocked to see the price go down most of the time. War obviously impacted it badly, but we saw it go up during war as well, which is a proof that we should not be really someone who gets in panic mode, or care about FUDs or FOMOs and just stick to a plan.

I know it is not really that easy, but it is also not so impossible neither. It can be done and we can definitely do it. All we have to do is do not care when ti is 39k, and do not care when it is 42k, if we keep guessing the direction and when it will stop going that direction all the time, it will hurt us.

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[stadus]

I wouldn't worry so much about the current bitcoin price. Right now BTC is at 39,000 USD, which seems quite healthy in my opinion given the current state of the world. You are comparing the price to the ATHs from last year, but the world has changed since. We are facing a major conflict with the Russia-Ukraine war, also inflation rates are rising compared to last year. Even before the Ukraine war the bitcoin price was lower than it is today. No reason to panic as long bitcoins manages to withstand all that downward pressure. In Europe for example the Russia sanctions are going to hurt the economies. Already now we see a double of the fuel prices in two weeks. This is going to increase inflation even more. It's just a matter for the world to go back to normality and for bitcoins to rise again.

Unfortunately people see every little thing as a chance to go up, and every big thing to see it go down. That is one of the main reasons why people are shocked to see the price go down most of the time. War obviously impacted it badly, but we saw it go up during war as well, which is a proof that we should not be really someone who gets in panic mode, or care about FUDs or FOMOs and just stick to a plan.

I know it is not really that easy, but it is also not so impossible neither. It can be done and we can definitely do it. All we have to do is do not care when ti is 39k, and do not care when it is 42k, if we keep guessing the direction and when it will stop going that direction all the time, it will hurt us.

Just don't often check the market so you won't panic. Expect that as this war continues, inflation too will be more uncontrolled, which makes the crypto market too doom to decrease its market value. Just stay calm and hold your bitcoin. When the market gets normal, everything will fall into its right place and we can see bitcoin price to increase again.

[goldkingcoiner]

A lot of this has to do with Russia's sanctions, I would think. For example the energy prices go up, making electricity becomes a bit pricier due to the fact that many of our energy production facilities still rely heavily on old fossil fuels. Since old fossil fuel prices are going up, so is the electricity for mining. The other sanctions have some complex effect on the crypto economy as well. Furthermore, Russia has been hinting at disconnecting itself from the internet, so we might see some FUD coming from that. Especially if the Russian miners get scared.

[Natalim]

Seeming decline in the price of Bitcoin is becoming a cause for alarm, because investors and intending ones will be skeptical, preferring to wait to see if there will be a balance.

Not anymore. People know that this sometimes happens and if you are already here for many years, you can really be experiencing this. The price fluctuates very often due to its volatile nature.

Although, the values of risky assets like the BTC tend to take a downward slope in the wake of the Federal Reserve making policy changes to more fiscally conservative. Also, measures enacted by the federal that are designed to control inflation have had a negative impact on the price of BTC.
 More so, as Bitcoin matures and becomes more accepted and adopted, the price is increasingly correlated with the prices of traditional assets like stocks.

Most of the time people have been affected by the things they heard like Restrictions, banning, and other sorts of criticism. They are too emotional and probably still doubtful about Bitcoin. I'm not going to wonder why this happens to them but for those who understand the situation, they still calm and hold their crypto assets.

[DoublerHunter]

A lot of this has to do with Russia's sanctions, I would think. For example the energy prices go up, making electricity becomes a bit pricier due to the fact that many of our energy production facilities still rely heavily on old fossil fuels. Since old fossil fuel prices are going up, so is the electricity for mining. The other sanctions have some complex effect on the crypto economy as well. Furthermore, Russia has been hinting at disconnecting itself from the internet, so we might see some FUD coming from that. Especially if the Russian miners get scared.

^ The war between Ukraine and Russia has definitely had an impact on the market not only in crypto, even the stock market to has been affected.
But I believed BTC price will increase soon and this very volatile we experience is very normal when someone trying to sell their BTC to convert fiat, probably Ukrainian sell their BTC that has been collected by the charity or someone big player sell their BTC to support the Ukraine war or either the Russia country. Just hold if you want to gain profit, this will back soon.

[GreatArkansas]

Seeming decline in the price of Bitcoin is becoming a cause for alarm, because investors and intending ones will be skeptical, preferring to wait to see if there will be a balance.

Not anymore. People know that this sometimes happens and if you are already here for many years, you can really be experiencing this. The price fluctuates very often due to its volatile nature.
(....)

Correct, for over the years I have been in the cryptocurrency market. It became normal, these dumps after a huge rally of the price is becoming normal, it's like a normal, it's not always up only.
For me, these declines will make Bitcoin healthy in terms of price, as times go by trading volume is increasing or the market cap of Bitcoin is increasing, it's very positive.

[franky1]

bitcoins most efficient and cheapest mining cost was
11th december 2021: 180exa network.. current gen asic 110thash 3.25kw at 4cent electric (hardware $12k /2year roi)
which translates to a bottomline mining cost of $35594.80

11th march 2022: 191exa network.. current gen asic 140thash 3kw at 4cent electric (hardware $11.6k /2year roi)
which translates to a bottomline mining cost of $28495.64

yep the bottomline value has dropped by $7k meaning those lucky enough to get the s19XP new gen batch of asics can mine cheaper and sell for profit.

in short the 'buy support' bottomline was $36k and now its becoming $29k

for the bottom line support to regain its $36k min support line. when the next gen asics become more commonly used. the hashrate has to achieve a minimum of 240exahash to stay up at a mining cost of $36k minimum

(note this is not about current PRICES.. this is about the stuff that makes up the hidden bottomline VALUE underneath the speculative price, but not seen on a market/exchange price chart, speculation of emotion and sentiment is what is added ontop of value.. in short the price is value+speculation)

the reason why the price is not say $70k (2x+ value) is because emotion/speculation is low.

[Chato1977]

snip

There was a predicted bear market around this time and a price correction, so it's not really unexpected, but the reason why BTC price is dropping is that a myriad of reasons can't cust be boiled down to a couple. The economy is a complex thing and BTC is not immune to any of them. Sure, some things have more impact than others, but everything adds up in the end.

People who don't understand economics will find it difficult to understand what's going on in the market and make the price of BTC go down.  bitcoin is a very volatile asset, it is not possible to stay at a high price forever, this happens because the market has high buy-sell transactions. 

it is not only bitcoin but all cryptocurrencies are volatile mate, everything on them cannot stay as that because dumping will happen here and there and can pump also here and there.
so best not to look to perfect investment instead be ready to what will happen to the value of your investment and profit .

[Baofeng]

Because bitcoin is highly volatile. It has no fixed price. And also,there are many factors to consider why bitcoin is fluctuating. It could be the supply and demands. When the supply is being increased, that can have a downward effect on the price. But if the demand of currency increases more than the supply, the value will go up.
The price also drop down when there is bad a news happening globally. And i think the main reason why the current bitcoin price is dropping because of the conflict between Russia and Ukraine.

That is already a giving fact, crypto is volatile and this is what traders wanted because it's either you know how to take advantage of it and make money or not.

But the basic tenant: law of supply and demand.

As for bad news, yes it could affect the price, but the market is maturing unlike before wherein every negative news equate to a massive downturn, not in 2022.

[virasog]

snip

There was a predicted bear market around this time and a price correction, so it's not really unexpected, but the reason why BTC price is dropping is that a myriad of reasons can't cust be boiled down to a couple. The economy is a complex thing and BTC is not immune to any of them. Sure, some things have more impact than others, but everything adds up in the end.

People who don't understand economics will find it difficult to understand what's going on in the market and make the price of BTC go down.  bitcoin is a very volatile asset, it is not possible to stay at a high price forever, this happens because the market has high buy-sell transactions. 

Those who are concerned about the bitcoin price drop are the ones who will most likely sell in panic. They fail to look at the bigger picture. In the long run, the bitcoin will make new all time highs but in order to get advantage of that, it is very important that we do not get dis-hearten by the small dumps in bitcoin. The dump can lost for 3 month,, 6 months or even more so that weak hands are shaken out of the market. Only the strong hands will earn maximum benefit.

[Sebas.tian]

bitcoin is falling today, it will rise tomorrow, if we take the dynamics of the growth and fall of bitcoin over 10 years, then everything suggests that bitcoin is growing, these are all corrections in the short term, sooner or later bitcoin will win back and return to its bullish values, the main thing is not to panic ahead of time.

Yes, bitcoin is growing compare to when the bitcoin price was $0.008 and people were very happy, that the price is good for people to make something reasonable from their week or monthly investment. Bitcoin price has dropped to $40k few days ago that is making people to panic because of the slow pumping they are receiving from the bitcoin exchange market which is not giving them hope if the price will reach $100k before the end of next month.
Bitcoin price is about to hit $100k according to some researchers who took their time to go round the market to see the signs the crypto market is developing .

[xzone]

A lot of this has to do with Russia's sanctions, I would think. For example the energy prices go up, making electricity becomes a bit pricier due to the fact that many of our energy production facilities still rely heavily on old fossil fuels. Since old fossil fuel prices are going up, so is the electricity for mining. The other sanctions have some complex effect on the crypto economy as well. Furthermore, Russia has been hinting at disconnecting itself from the internet, so we might see some FUD coming from that. Especially if the Russian miners get scared.

I don't think you need to think about it that much. Yes, there is a war right now and the effects of this war are reflected in the entire financial order. The prices of both bitcoin and other things are heavily impacted. But bitcoin was already in a downtrend, if not for the war right now it would be falling because of something else.
When the war is over, the market will definitely go up again

[bitzizzix]

It seems that the decline that occurred due to the influence of the existing conflict, and geopolitical uncertainty also made investors nervous, especially as Russia's attack on Ukraine continued.
and meanwhile, talks between diplomats stalled, as the two sides did not reach an agreement on a ceasefire.
and it shows a lack of trust and doubt among traders and investors, and hopefully this conflict will end soon so as not to impact investors because of their worries, but don't worry this is only temporary because in the long term everything will be fine and recover. Therefore Hodl the best choice.

[LogitechMouse]

tl;dr

A wall of words. Somebody from here as well taught me that at least when you are posting many words, at least make some double spaces into it so that it will be readable and pleasing in the reader's eyes.

Now with regards to BTC dropping, there is only one answer for that. It isn't the events that is happening right now but its the sentiment of the investors.
We know that the market is heavily driven by the sentiments of the investors. We've seen negative news already like China banning ICO's in 2017 where it is hype but what happened? The market rose at that time and Bitcoin went up to $20,000. Now the Ukraine-Russia war is happening which is a negative news as well and the price of the market went down because they see it as a negative that's why they sold their holdings.

Sentiments or emotions of the investors is the main reason why the market is moving and it isn't only applied in the crypto market but in the stock market as well.

[acroman08]

OP posted about an article created on January 26 2022. so, the article has nothing to do with the current price drop of BTC.

@OP, next time you should find a more updated article and not a month old(or two) article.

Bitcoin's price go up and down literally all the time that it's boggles my mind why people always sort of gets shocked quite a bit when volatile moves happen.

probably new investors. people who have invested in bitcoin for more than a year(maybe less) would probably get used to the constant upward and downward slope of BTC's price.

[Vatimins]

     In the case of lods ng term holders, not selling and being calm is a good advice. But for midterm holders, they should have sold already nov-december last year. It was pretty obvious that the cycle is ablut to lead us to a bearish time even if the Ukraine-Russia issue did not happen. Although I am optimistic in bitcoin, my holdings are not part of my daily expenses so I can just hold them even when dumps happen. If you watch the chart, bitcoin has not escaped the 40k range since January and now, there aren't even any liquidation wicks on 30k below. But hey, i don't really see it going as low as 30k, just that it gives us a glimpse of what the market is right now.

[Leviathan.007]

I should ask another question, why do people expect to see the bitcoin price is rising all the time? no matter if you are talking about bitcoin, the stock market, or any other market in the world, the price and price action is mostly acting the same way, you cannot expect to see the price being bullish all the time, it should take a rest and do some correction, these corrections are sometimes based on the short time frames and during these times the price won't drop too much, but some othertimes this can take sometimes and reach lower levels which is very much normal and necessary for the market.

[jaberwock]

A lot of this has to do with Russia's sanctions, I would think. For example the energy prices go up, making electricity becomes a bit pricier due to the fact that many of our energy production facilities still rely heavily on old fossil fuels. Since old fossil fuel prices are going up, so is the electricity for mining. The other sanctions have some complex effect on the crypto economy as well. Furthermore, Russia has been hinting at disconnecting itself from the internet, so we might see some FUD coming from that. Especially if the Russian miners get scared.

I don't think you need to think about it that much. Yes, there is a war right now and the effects of this war are reflected in the entire financial order. The prices of both bitcoin and other things are heavily impacted. But bitcoin was already in a downtrend, if not for the war right now it would be falling because of something else.
When the war is over, the market will definitely go up again

I thought btc goes down for some reason? Then why would we need to wait for the war to be over before btc recovers? it's fine to think about the wars because it is still fresh from us and I think it is still ongoing but what is bad is when we overthink it, that will only make you crazy in the long run and it can badly affect your decision of selling and buying.

If energy or the electricity price goes up, what is its connect to bitcoin price? That will only affect those who mine cryptos, if they are mining the traditional way and not using a renewable energies. If Russia ban the net, that can affect the price but it will eventually recover when many have successfully bought after it.

[Abiky]

When price goes up too quickly, everyone starts to celebrate. And when the price drops, everybody wants to know what's the reason why.

Well, no one has the right information why the market is dropping but you can have that speculation that it's all due to the supply and demand plus the news that are rotating the whole market.

And recently, there was a quick price increase for bitcoin so this was expected that there's a reversal too.

Most people quickly panic after a "bloodbath" in market prices because they think Bitcoin is always meant to rise in price. But you and I know that's not the way it works. The market is just driven by speculation, as anything big or small can directly affect Bitcoin's price in terms of Fiat. Newcomers only get into Bitcoin with the hopes of getting rich quick. They don't care about the technology, since they're only blinded by greed.

Let me tell you that no one can predict with certainty if Bitcoin will go higher in price within the long term or all the other way around. There are many reasons why the price of BTC is dropping. It can be the Russia-Ukraine war, the new COVID variants, or simply negative criticism from a popular figure like Elon Musk. What matters is not the price per coin but rather its usefulness. I've said this many times already. As long as Bitcoin fulfills its purpose as a censorship-resistant kind of money anyone can use worldwide, nothing else matters. Just my opinion

[South Park]

The answer is: no-one knows.
Or in other words: there is no one single reason. You may easily explain why price of oil goes up or down, or why price of shares of company X goes down or up. BTC is closer to FOREX trading - and there sometimes miracles happens.

As simple as that, when there is a very strong drop in the price then most of the time we can find some reason behind the drop, however when the drops are on the small side then that is just noise and we must not give too much attention to them as there is not really a single reason behind that movement, the most simple explanation is that either the demand or the supply available in exchanges changed and this caused the drop, so it is better to not waste too much of our time thinking about something like that.