What's happening With Bitcoin?

[AnotherAlt]

I know almost all veteran members understand what's happening in the market. But, newbies like me still trying to figure out what's happening and the possible reason why it's happening. Now, People sharing their thought as if BTC is the only currency that is going down now. Every currency going down right except stable coins (We don't see the stable coins going down like Terra UST).

The key point Reason for the Market Crash is Fear and Inflation.

Here is an article worth reading from financial express.

Cryptocurrency markets have crashed to a new low of this year today (13th June, 2022). The global market cap has shrunk below $1 trillion to $977 billion, around 12 % fall since yesterday. The global cryptocurrency market cap has fallen by around $1 trillion this year while almost every top coin is now worth half or even less than their all-time highs.

The immediate trigger for the crypto crash appears to be a massive sell-off by investors amid heightened inflation fears and pausing of withdrawal by crypto lending service Celsius. Investors are also continuing to stay away from riskier assets, which is reflecting in the stock markets as well.

“The crypto market has been under pressure from the Federal Reserve, hiking the interest rates to combat inflation over the past few months. Bitcoin, Ethereum, and most cryptocurrencies suffered losses over the weekend after a broad sell-off following the data showing US inflation hitting a 40-year high,” said  Edul Patel Co-Founder and CEO of crypto investment platform Mudrex.

“As investors seem to have panicked, the number of crypto liquidations has been high since Friday. Bitcoin and Ethereum plummeted as much as 7% each and are currently trading at their lowest at US$25,000 and US$1,300. The bearish trend may likely continue in the next coming days,” he added.

While altcoins have historically underperformed Bitcoin, this time they have an added pressure of potential regulatory roadblocks. A report by CoinDesk quoted an expert as saying that only a small number of altcoins are likely to survive such market movements.

Shivam Thakral, CEO of crypto exchange BuyUcoin said that the rising food, gas, and energy prices are putting tremendous pressure on the crypto market as Bitcoin and Ether have witnessed double-digit losses in the past 24 hours.

“After the consumer price index reported the highest inflation since 1981, financial markets across the globe have seen a sharp downturn,” said Thakral.

“The market is expected to remain choppy in the coming weeks and countries around the globe continue to report high inflation numbers. The current dip in the crypto prices allows investors to buy crypto at 2021 prices and we expect the seasoned investors to take advantage of the dip,” he added.

According to Darshan Bathija, CEO of crypto exchange Vauld, most investors worry that unless inflation numbers start dropping soon, the US Fed may have to tighten reigns by increasing interest rates at a faster pace than anticipated.

Source: https://www.financialexpress.com/digital-currency/crypto-crash-reason-6-13-why-is-crypto-crashing-today/2558313/

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[Amph]

Ignores all the dumps focus only on the pumps

[BitcoinHodler]

in my experience the only reason for the current drop is only fear and nothing else.
we had price not being able to go above $70k a couple of months ago and then it fell down. ever since then it hasn't been able to reverse back up and people became convinced that the drop is the repetition of previous drops such as the one we had in 2018 so it should be long and big like that one. with the world economy mainly in US and Europe crashing hard we have an additional fear in bitcoin world.
the result of all of this is the crash we are seeing.

[kryptqnick]

I must say, I didn't expect Bitcoin to drop so low. I thought that it was becoming more stable, losing a lower percentage of its value than it used to before. It seems that I was wrong, as it already lost around two thirds (compared to ATH), and it's unclear if the bottom is $20k (maybe it can go even lower, who knows anymore). I'm a bit concerned, and I don't think inflation is a reasonable explanation. Why would inflation lead people away from Bitcoin, not toward it? After all, Bitcoin is resistant to inflation by design (to hyperinflation, that is, as the number of coins is growing, but slowly)! So it's some sort of ridiculous panic selling. I hope the panic will be over, and more people will start seeing it as an opportunity to buy.

[dimonstration]

in my experience the only reason for the current drop is only fear and nothing else.
we had price not being able to go above $70k a couple of months ago and then it fell down. ever since then it hasn't been able to reverse back up and people became convinced that the drop is the repetition of previous drops such as the one we had in 2018 so it should be long and big like that one. with the world economy mainly in US and Europe crashing hard we have an additional fear in bitcoin world.
the result of all of this is the crash we are seeing.

Ofc, Only fear is what makes an asset dump because no one will sell unless they fear speculate on what will be the outcome of the market. We can't blame those sellers because the majority of them are just buying Bitcoin for profit alone and not like us that believes on it's future use case on the future of finances.

Fiat is the root of all this problem in the economy. Maybe someday people will realize how cool Bitcoin is.

[CryptSafe]

What's happening now is no big deal. It has happened before and will continue to happen that is why it is called volatility. As a smart investor this is the right time to buy more and fill up your bag while waiting for the bull run. People panic selling would cry later.

[Henrobakkara]

I must say, I didn't expect Bitcoin to drop so low. I thought that it was becoming more stable, losing a lower percentage of its value than it used to before. It seems that I was wrong, as it already lost around two thirds (compared to ATH), and it's unclear if the bottom is $20k (maybe it can go even lower, who knows anymore). I'm a bit concerned, and I don't think inflation is a reasonable explanation. Why would inflation lead people away from Bitcoin, not toward it? After all, Bitcoin is resistant to inflation by design (to hyperinflation, that is, as the number of coins is growing, but slowly)! So it's some sort of ridiculous panic selling. I hope the panic will be over, and more people will start seeing it as an opportunity to buy.

Let's think about this for a minute. I understand everything you are saying but for all the people who panic selling there must be opposite people happily Buying their Bitcoin up because it is not been sold into thin air. As I said, I understand why people will feel the way they do about the market but if Bitcoin could go from $20k to about $3k and was also able to come back from that to above $60k, this is just another phase but the recovery could take time no question.   

[Rruchi man]

I must say, I didn't expect Bitcoin to drop so low. I thought that it was becoming more stable, losing a lower percentage of its value than it used to before.

It's a very difficult time for Hodlers of bitcoin, and more difficult for those who bought the dip a few weeks before and are new to crypto, thinking that was the lowest the prices could get. Many plans have changed as a result of this further dip, for some a setback, for others who are both financially stable and confident an opportunity to buy more. We have to be prepared mentally for situations like this, just as we can't predict the how high the value of bitcoin can be, likewise the dump, we must as much as possible avoid to join the panic because in panic do people make wrong investment decisions.

[franky1]

Ignores all the dumps focus only on the pumps

         pump
   pump  /\
      /\   /   \/
    /   \/    dump
  \/   dump


SELL
HOLD
BUY

buy the dip, sell the hype

[cheezcarls]

I think one of the key reasons regarding BTC’s dump is due to Celsius blocking all redemptions resulting for the whales to play mind games with us by simply selling some of their BTCs and let others panic sell before they could buy again at their targeted prices. However, that might not only be the reason. There are many reasons why BTC is pumping and dumping without warning, but all I know is that it’s here to stay and may recover hopefully by the Q4 of this year or so.

[Redones]

This is the normal. Bitcoin is by nature volatile, and this what will open door in front of investor to take advantages of the reduced and the potential raise of price.

[GeorgeJohn]

I must say, I didn't expect Bitcoin to drop so low. I thought that it was becoming more stable, losing a lower percentage of its value than it used to before. It seems that I was wrong, as it already lost around two thirds (compared to ATH), and it's unclear if the bottom is $20k (maybe it can go even lower, who knows anymore). I'm a bit concerned, and I don't think inflation is a reasonable explanation. Why would inflation lead people away from Bitcoin, not toward it? After all, Bitcoin is resistant to inflation by design (to hyperinflation, that is, as the number of coins is growing, but slowly)! So it's some sort of ridiculous panic selling. I hope the panic will be over, and more people will start seeing it as an opportunity to buy.

any bitcoiner directly known that bitcoin price or regulations is not constant and it doesn't stick to one particular values.and i want you to know that it's obvious that the price of Bitcoin and price of any other coins is not same with bitcoin price, and anything that makes bitcoin price going down will affect every other cryptocurrencies. Those who panic when they experience bearish market is people who is not acquainted with the price regulations of cryptocurrencies. Because it's obvious that Bitcoin don't have a specific price

[Roidz]

This is the normal. Bitcoin is by nature volatile, and this what will open door in front of investor to take advantages of the reduce price and the potential raise of price.

In trading and investing, indeed what is happening now looks quite normal, but of course there is a reason when make for the significant decline in bitcoin like today, the price of bitcoin even very fell in just 24 hours and to be honest if what is happening now makes I am a little afraid of the future of bitcoin, seeing the decline that continues to occur due to the many negative issues circulating makes me think if maybe bitcoin has now entered the Crypto Winter phase again

[jaberwock]

What's happening now is no big deal. It has happened before and will continue to happen that is why it is called volatility. As a smart investor this is the right time to buy more and fill up your bag while waiting for the bull run. People panic selling would cry later.

For you maybe because you have less worries but for some it is a big deal since they expected that the price won't drop like this. They want bitcoin to recover now so that they can sell and pay the money that they loan for buying more bitcoins at the last dip. Volatility is the up and down of the price in a short duration and the gap is small only but what we are witnessing now is more than it, it is now called a dump or a bear because the price gets stable at the lowest points.

There is no need to panic sell if it's only about btc since like you said this wasn't the first and this isn't also going to be the last but better if we practice ourselves to get used of this situation.

[mayax]

it's going down... it is a normal process. the cash is value not BTC.
the smart ones withdrew the shits to cash.

[GeorgeJohn]

it's going down... it is a normal process. the cash is value not BTC.
the smart ones withdrew the shits to cash.

that's what i have been emphasising on since, bitcoin price always experience downfall.so when such occur people thought that bitcoin will not resurrect any longer. And from my conception i know vividly that it's wrong part of newly investors understanding cryptocurrency regulations and speculation. Falling of bitcoin makes it to be stronger and fit. And it's very plain and obvious that without experiencing degradation of price, it's bond and market profiting will not be valued to the society.

[sheenshane]

If someone will remember in the year 2018, which was the last quarter of the year Bitcoin had sharply down and almost reach $3k.
Everyone freaking out at that moment and I saw it seems the same in this situation now that someone freak out about the price knowing that it's pretty normal to the Bitcoin price movement.  That's how the volatility will work.

If you're a holder, just extend your patience and if you're an investor, it's the right time to invest.
Buying with DCA way during this massive dump would be the best choice.

[passwordnow]

We're inside the cycle. Inflation do come and it's also part of it and that's because people will find a way to hedge against it and the perfect asset for it is bitcoin.

Buying with DCA way during this massive dump would be the best choice.

I agree and whether DCA or not, as long as you take the moment to buy on this very dip, you're just doing the right thing. It's a wise choice to buy when you've seen that we're likely at the bottom.

[Oceat]

This is a normal and common thing to happen during bear market since it's due to fear and weak hands to hodl in this kind of price. Mostly of them are cashing out already after seeing the price hits $25k then now here we are staring at the $22k and if more fear and dump's going to happen then it's not impossible to see a below $20k price.

But I hope the support is strong enough to hold at $20k besides if it's going down then buy the dip it's all a win-win situation anyway, you just have to know how to work things out.

[worle1bm]

Been in this market for long and have seen this many times and there are lot of    factors responsible for the same at this time but we all know this phase will also recover soon and prices going up.We are in bear cycle and we witness these big dumps in few years mixed up with lot of things like the LUNA crash at this time which affected it badly but for long run it's no worries.