7 Reasons for the sharp drop in the Bitcoin price after the extraordinary rise

69 views 9:12 am 0 Comments August 7, 2023

 There are 7 reasons for the sharp decline in the Bitcoin price and other cryptocurrencies during the past week. Last week, Bitcoin lost more than $ 7,000. After having seen a record increase in recent weeks approached him from the level of 20 thousand dollars. this article is on our site E-helper Team.

Bitcoin price

The reasons for the sharp decline in the Bitcoin price

1 – The festive season

Because of the approaching end of the year and the festive season.  which is reflected in the fall of all financial markets. As it is a period for investors to profit and liquidate their portfolios. This is what happened with Bitcoin.

2 – Bubble obsession

Bubble obsession” is the term used by all opponents of Bitcoin and cryptocurrency. Which created a kind of confusion about the future of cryptocurrency and Bitcoin specifically. Wherever this name appears on the scene, markets begin to be confused.

3 – Great breakthroughs

The great breakthroughs that have been exposed to some of the large sites of Bitcoin trading platforms. Which has created a state of permanent concern among cryptocurrency traders. The site, “Nice Hash”, works in the field of mining Bitcoin. A recent 7-minute breakout resulted in losses of $ 70 million.

4 – Legal Situation

Cryptocurrencies in general still have difficulty finding a legal and legislative framework for work. Coinciding with statements on the currency leads to a sense of fear and caution in the trader. In a CNN report last Friday, the network pointed out that a South Korean currency trading platform was forced to close last week after being attacked by pirates in a few months.
These incidents raised questions about the reliability of cryptocurrency markets not regulated by governments or central banks, the network said.

Despite some of the above, some argue that Bitcoin takes a break. Even if the decline is significant after the activity that occurred during 2017.
Bitcoin rose from under $ 1,000 at the beginning of the year to $ 20,000 on Sunday. Amidst record big jumps and record numbers during the year.

5 – Whales market

According to a recent report by Bloomberg, 1,000 investors in the market own 40% of the currency. Allowing them to change things and instill fear and anxiety to drive investors to sell as quickly as possible.

6 – Subtract Bitcoin Cash in The platform “Coin Base”

The introduction of the currency of Bitcoin Cash on the platform “coin base” – a currency other than Bitcoin. This caused some confusion in the cryptocurrency market. Especially with the top of the site for several hours and stop selling and buying it. Leading to a lot of negative speculation about the digital currency.

7 – The time cycle for Bitcoin Between up and down

The time cycle that occurs every 3 months, which the Wall Street Journal has talked about.




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