Why does the price of Bitcoin often experience drastic overnight drops?

[Promocodeudo]

It's normal for cryptocurrencies but not all of them that experience volatility are able to pick up. Some of them experience a dip and that's the end for them but Bitcoin is not just the best digital currency to invest your money on, it has proven it isn't just a bubble.
Other means of exchange that is traded do have their ups and downs but what'd most important is how they perform when they get back up.

Yea that's right, some of those pump and dump shit don't recover once they dip although those are not even good projects in the first place,  but is beautifully created that's why sometimes I wonder why some people complain about the price drop, price drop in Bitcoin is normal, if didn't start today and I don't think it will end anytime soon, the reason for upsurge and price dip of Bitcoin is a result of volatility, so knowing this, it means that the existence of Bitcoin so tied to this volatility, I stop it here.

[YOSHIE]

Is this a common occurrence for cryptocurrencies?
Bitcoin= sound money

If you invest in Bitcoin 0.009/BTC once a month count a year 12x you only get 0.108/BTC You buy no market effect and you sell everything also does not affect the market.

Bitcoin boom adoption in large quantities such as those done by leading companies 3000/BTC tonight Bitcoin prices can rise dramatically and hold one day off to the market on a large scale 3000/btc overnight the price of bitcoin can drop dramatically, that's how the market works.

[BitArtisan]

Yeah, overnight drops in Bitcoin are pretty common. Crypto trades 24/7, so stuff can move fast while you're sleeping. A lot of it comes down to low liquidity, big players moving funds, or leverage wipeouts triggering a chain reaction. It’s just part of the deal with Bitcoin and crypto in general. Quite volatile, but that’s also what makes it exciting.

[Zaguru12]

You supposed to mention your country time zone. Your night time may be the evening or morning in some countries.

When bitcoin fell yesterday, it was in the evening in my country. I mean when it fell below $116000 yesterday. But the price increased back in the midnight and increased more at dusk.

There are times that bitcoin will fall during the day and also overnight. So what you said is strange to me and it is not correct.

I still don’t understand what OP was on about decreasing price in the middle of night, bitcoin doesn’t have time zone it is trading 24/7 and this is the first time I have seen someone complain or talk about drops in the night,

The usual predictions I have seen in the past is about bitcoin having lower liquidity during weekend because most people do not trade much but even this claim wasn’t true in my opinion. There were weekends where heavy pumps had happened in the past.

Bitcoin is tradable 24/7 and there is no specific time about when there some certain trends of the market. Market can pump and dump anytime of the day

[promise444c5]

Overnight?.. You should know that your  night time is some people's daytime  , the market is always active and moving in both directions , the reason you don't seem to  notice that much difference in the day time is probably you check more often which is different  from your nighttime.. the price you checked before you sleep is what you would register for long hours and the difference could be surprising if you wake up if it's  dropped drastically.. Still doesn't  make too much sense though, Bitcoin price moves in both direction, yes we could have some long Dips attimes but that doesn't  mean we can't  have massive pumps (in very short interval of time, could be hours) perhaps it's  just coincidence  you experience the tops before sleeping.

[headingnorth]

Often times it is caused by longs getting liquidated. When there aren't enough shorts to cover all the long payouts,
market makers will come in to "fix" the problem, the longs get liquidated and price dumps.

The opposite happens when the short side is top heavy, market makers rush in creating a short squeeze that sends the price upward.
Which is basically why playing with leverage is a bad idea either way, but fools never learn. There is no such thing as a free lunch.

People's greed will get the best of them.

[jogoo]

Is this a common occurrence for cryptocurrencies?
Bitcoin= sound money

Yes, it's common for any currency or asset that is essentially tradable in a free market, no central authority to approve anything, which operates 24 hours a day, 7 days a week, irreversible (can't later change your mind on a purchase or sale), can be traded in small fractions, immediate transfer to new owner, and tradable from anywhere in the world using your digital device. If you could trade gold, real estate, etc. in the same way as bitcoins as described, their prices would be equally volatile.

[Leahized]

Yeah, overnight drops in Bitcoin are pretty common. Crypto trades 24/7, so stuff can move fast while you're sleeping. A lot of it comes down to low liquidity, big players moving funds, or leverage wipeouts triggering a chain reaction. It’s just part of the deal with Bitcoin and crypto in general. Quite volatile, but that’s also what makes it exciting.

There may be many reasons behind the decline in Bitcoin overnight, but one of the main reasons for the present is to issue Trump's tariffs. Although it did not flow in the beginning, a large amount of Bitcoin is flowing over 24 hours and the price has dropped. Another reason is that the top Bitcoin holders in the world are the most Bitcoin transactions in the world and I think it also plays a bad situation for Market. Moreover, the market had a huge impact for Bitcoin's extra instability and proceeded towards the fall. Because when Bitcoin pumps more and more, those donations are not stable most of the time and down overnight.

[WhoYouCantKill]

Sure, drastic overnight drops is possible in Bitcoin and other cryptocurrencies. The market is 24/7, it is highly speculating and less liquid than traditional assets, making it more vulnerable to unplanned swings. A big sell-off from a large holder, emergency news or alarm sale can trigger fast drops.
It's volatility does not suggest Bitcoin is not sound money, it reflect its early stage adoption and the heartfelt character of traders. As the market grows and more long-term holders take over, the price swings may become less extreme.

[Oluwa-btc]

You complained about the overnight drop in Bitcoin price. Would you also complain when Bitcoin skyrockets overnight? The overnight decrease and increase in Bitcoin price are normal to see. You shouldn't begin to feel bad or complain bitterly about such when the market is volatile(fluctuates up and down). Don't you know about such happenings before starting your investment journey in Bitcoin?

Bitcoin has no closing bell besides,the market psychology is never the same.It's normal for Bitcoin to experience several market fluctuations and factors like the general financial instability trigger the market overnight and cause Bitcoin to drop.Everything happens faster without Caution.

[TheUltraElite]

Stock markets have fixed timings but crypto markets do not have so, anything happening throughout the world will influence the bitcoin market, one nuance that you get used to once you have been watching the market for years.

I really dont find it anything problematic, let the price rise and fall, you should be more interested whether it is reaching your buy/sell point. So just place orders on your exchange and leave it till it get completed. It might happen overnight, it might not.

You cant just take all the stress and still sleep soundly. Let the market be.

[Akbarkoe]

Significant declines are certainly commonplace for us Bitcoin holders, but if there's a decline, it means something is happening on a global economic scale, affecting the price. Even when the Fed raises interest rates, the Bitcoin market usually experiences a decline.

It's honestly not normal, but we accept it because it's how we've profited from Bitcoin so far. Without a decline, there's no backlash and it's not reaching an all-time high.

[Agbe]

This is due to volatility Bitcoin is as an asset is volatile plus some external factors can affects crypto currency especially Bitcoin but this should not be a problem to anyone who has tracked the historical price movement of Bitcoin so far Bitcoin always hit a all time high when ever it drops in price this is why most Bitcoin enthusiast will say that Volatility helps in price correction this means that the volatile nature of Bitcoin actually has a positive effect on the overall price of Bitcoin

[GeorgeJohn]

Is this a common occurrence for cryptocurrencies?
Bitcoin= sound money

Right from time, bitcoin price is something I know very that haven't be stable  for period of one year, the price is rotational almost every time, and it take more advantage by revolving to the positive point of it, I know that if bitcoin price falls maybe it's on a correctional value, so I know very well that bitcoin price never be stable, it's goes up and down, which I don't really need or wants, so if you wants to invest on bitcoin do not because of the price falling at all cost and you take a decision not to invest in Bitcoin, the increase in bitcoin is not equivalent to the decrease, any falls of bitcoin is advantages to people, and we have in mind that bitcoin will continue to be increasing

[Mpamaegbu]

It's normal for investors to take profit once they hit their targets, whether as collective action or as single whales. Whenever that happens, price must drop. It doesn't matter whether it's Bitcoin or not. Since Bitcoin is the rave of the moment, eyes are on it and every dip is easily caught. Now, here's where it gets interesting. Not every dump in price is caused by genuine drop in demand but by the manipulative activities of whales and market manipulators. That's why we ought to pay attention to the season we're in. Anyone who sells now because there's a dump in Bitcoin price doesn't understand what's happening. They've been played by whales.

[batang_bitcoin]

Is this a common occurrence for cryptocurrencies?
Bitcoin= sound money

Yes.
Bitcoin sound money and these drops overnight are very normal happenings in the market. And whenever it drops a lot, you'd see the domino fall because the altcoins market are also following. So the reason for this is simple, Bitcoin is highly volatile and that's why it moves a lot from time to time but sometimes, it doesn't move at all for a couple of days. But when it does, expect that it's only two of it, either up or down.

[GreatArkansas]

Is this a common occurrence for cryptocurrencies?
Bitcoin= sound money

Yes.
Bitcoin sound money and these drops overnight are very normal happenings in the market. And whenever it drops a lot, you'd see the domino fall because the altcoins market are also following. So the reason for this is simple, Bitcoin is highly volatile and that's why it moves a lot from time to time but sometimes, it doesn't move at all for a couple of days. But when it does, expect that it's only two of it, either up or down.

That's how the market works, and I believe it is also common in cryptocurrency for many reasons. First, for me, the reason is having 24/7 availability to trade; unlike the stock market, there are only specific trading hours you can trade.
Another thing is that the Bitcoin market cap, market cap could still be a factor, especiallya  few years back, where we can see strong volatility comparedto  these days. I'm curious what will happen to the volatility if market cap of Bitcoin will multiply in the future.

[TravelMug]

Is this a common occurrence for cryptocurrencies?
Bitcoin= sound money

Yes.
Bitcoin sound money and these drops overnight are very normal happenings in the market. And whenever it drops a lot, you'd see the domino fall because the altcoins market are also following. So the reason for this is simple, Bitcoin is highly volatile and that's why it moves a lot from time to time but sometimes, it doesn't move at all for a couple of days. But when it does, expect that it's only two of it, either up or down.

That's how the market works, and I believe it is also common in cryptocurrency for many reasons. First, for me, the reason is having 24/7 availability to trade; unlike the stock market, there are only specific trading hours you can trade.
Another thing is that the Bitcoin market cap, market cap could still be a factor, especiallya  few years back, where we can see strong volatility comparedto  these days. I'm curious what will happen to the volatility if market cap of Bitcoin will multiply in the future.

I agree, when this kind of market is open 24/7/365 then there will be a lot of volatility. As no one sleeps here, when the others side of the world is resting, then us are awake an continue to trade and so it's a continues flow of money, billions of dollars are traded. We have heard that there is this argument that market cap is not that important. But we all know that it's like a trigger for the market. Whether price of Bitcoin is going down or up. So for me it is still considered a gauge as how dominant Bitcoin is and will remain like that. And if the question that why Bitcoin drops overnight, then wait for how Bitcoin goes as well. And that is very evident in the bull run that we have right now. Although there is a slight drop, we are still very confident that we will make a huge run and go to another all time high in the following months.

[fuguebtc]

Is this a common occurrence for cryptocurrencies?

I don't know if you are new to this market or not but based on your account it looks like you are new to the forum.


It can be said that your question is the kind of basic knowledge that any investor needs to know before entering the market. So if you don't understand why the price is dropping so much and you are not ready for that, you are not ready to invest in bitcoin.

As many others have explained, Bitcoin is a financial market and is considered the riskiest market because of its high volatility. If we want to earn high profits and get rich quick, the price we have to pay is high volatility and high risk. You can't expect bitcoin price to skyrocket and give you huge profits, and it will never be dumped. So if you are someone who doesn't like roller coasters and doesn't like high volatility then bitcoin and cryptocurrencies are not for you.

[JimboToronto]

Bitcoin price pumps and dips anytime of the day and not only overnight. I feel that your timezone is why you feel that it's always in the middle hours of the night. However, volatility is the nature of cryptocurrency and fundamental analysis and investors sentiment can come up anytime and thay will affect the market.

I don't think this is what the OP probably meant. This is a common expression in some countries. "Overnight" means very quickly or suddenly, and it doesn't mean it only happens over night.

Bingo. I think what we're dealing with here is an issue of English being a second language and a misunderstanding of a common English language idiom.

This misunderstanding is repeated  throughout the thread by people who don't realize it has nothing to do with day or night.