As the time passes by, it would seem that cryptocurrencies are dropping more and more, making a lot of investors panic. The crypto market situation has been bad throughout the year. Week after week, month after month, the bad news was piling up, and the prices kept dropping. Traders and investors keep asking themselves why is Bitcoin going down?
Of course, there was good news as well, but it would seem that the good simply wasn’t enough to outweigh the bad. Then, in August of this year, things finally started looking up. The prices were surging once more, a lot of positive development came, new projects, partnerships, and more. The investors’ confidence started coming back, and we even saw an increase in interest in cryptocurrencies.
However, the positive development soon ended, and now Bitcoin and its altcoins are in another free fall. The prices are going down once more, as the market returns to its bearish nature. A lot of investors are wondering why that is? Why is Bitcoin going down, especially after everything seemingly fell into place back in August? There are actually several reasons why this is happening right now, and while nobody can do much to fix it by themselves, it is still useful to understand what is going on.
Why is Bitcoin going down?
Bitcoin has gone down numerous times this year, and for various reasons. Whether it was oversold, or it experienced negative news, or something else entirely — these things have been known to influence its price. While Bitcoin is only one of the hundreds, possibly thousands, of cryptocurrencies, it is still a representative of the industry. As such, whatever happens to BTC, usually happens to altcoins as well.
This summer, Bitcoin went up and down multiple times, with its price oscillating between $6,300 and $8,400. Its crashes have been mostly associated with the Bitcoin ETF requests that various companies filed. So far, the US SEC rejected them all, which demonstrated their lack of trust in Bitcoin.
A lot of experts claim that it is still too early to think about the ETFs and that this is something best left for 2019. However, there is also a lot of those who believe that the time is right. Obviously, the SEC does not share their opinion, and so far, it has either rejected Bitcoin ETF requests, or it has postponed the decision. In both instances, they damaged the market, as the investors’ confidence in BTC wavered.
This is mostly what caused the Bitcoin crash back in July. When it comes to August of this year, it was pretty kind to cryptos, and it even had a small bull run that led prices up for the first time since May 2018. However, as August came to an end, and September took over, a new period for cryptos came as well.
September market crash
It all started about a week ago, on September 5th, when an old crypto wallet that has been dormant for four years started to grow active again. The wallet was filled with BTC, and it started splitting the coins into smaller groups, which it then proceeded to send to various exchanges. Nobody knew who the wallet’s owner was, and different theories soon piled up.
But, why is Bitcoin going down? Well, as mentioned, the wallet was full of BTC, and it contained around 111,000 coins, This was an equivalent to over $800 million according to BTC’s price at the time. The investors feared that, if that many coins return to the circulation, BTC’s price will go down either way. So, many of them cashed out, and the price dropped anyway.
Then, only days later, Goldman Sachs announced its decision to postpone opening crypto trading desks. Instead, they would focus on other projects, until better regulations arrive and reduce the risks for institutional investors. This has hit the market hard, as many believed that cryptos entering the Wall Street would be the real game-changer for digital currencies. Now, it would appear that it still won’t happen.
These days, many believe that the price was manipulated on purpose and that whoever made the BTC dump, had some insight in Goldman’s trading desk plans. The fact is that the SEC claimed that BTC is still too easily manipulated and that it is not yet time to approve ETFs. According to recent events, it appears that they were right.
For the latest cryptocurrency news, join our Telegram!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Ethereum Flippening Bitcoin In 5 Years?
The dominance of Bitcoin (BTC) in the crypto markets due to the bear market, currently stands at 55.2%. Ethereum’s dominance is a distant second at 10.8% of the total cryptocurrency market capitalization. This is despite the fact that the value of ETH is still shaky with many traders postulating that it could get worse for the digital asset before it gets better. Ethereum’s decline has been blamed on three factors outlined below:
- Congestion issues on the network
- ICOs cashing out the ETH raised in the ICO boom of last December to late February this year
- Traders shorting ETH due to the above two reasons
Ethereum Flippening Bitcoin?
In a tweet on the 18th of September, Weiss Ratings stated that ETH will grab 50% of Bitcoin’s market share in 5 years. Doing the math, this means Ethereum flippening Bitcoin in the markets with a dominance that will be around 38%. BTC would be at half its current value, and at 27.6% of the total crypto market cap.
The full tweet from Weiss Ratings would go on to explain why this would happen:
“#Bitcoin will lose 50% of its #cryptocurrency market share to #ETH within 5 years, due to it offering more uses and being backed with superior #blockchain technology. We completely agree – unlike #BTC, which is a one-trick pony, the limit of…
Crypto News: What Happened To Bitcoin?
The crypto news of the day is what the heck happened yesterday in Bitcoin? In a matter of 2 hours, we saw the Bitcoin price go from 6320 to 6080 on Bitmex and then rocket higher to 6580. In the process, stops were cleaned out for both longs and shorts.
For all of 2018, Bitcoin has been a perfect vehicle for swing traders. The market has been playing support and resistance levels perfectly. The play has been to buy Bitcoin around the 6000 level and sell above 7000. Until this pattern changes, it’s what traders and investors need to keep doing. Yesterday’s price action, while crazy and extreme, does still support this strategy.
Why the crazy move in Bitcoin?
There are a number of thoughts as to why Bitcoin made the move that it did. They are technical related and don’t involve a fundamental reason. The first is that there are bots on Bitmex that go hunting for stops. The bot utilizes inside knowledge of where the orders are clustered. If the bot can move the market to where the stops are, it can get filled.
The second is that yesterday was the expiration of the CBOE futures contract. I am an ex-futures trader (now crypto) and know that expiration days can see some crazy moves. This is because it’s the last day to close a position on that futures contract.…
XRP Rally Lifts Bitcoin and Ethereum
It’s quite surprising to be writing this, but the XRP rally lifted Bitcoin and Ethereum off yesterday’s lows. As I wrote yesterday in covering Bitcoin, my bullish enthusiasm was dampened by Bitcoin’s $300 drop. XRP rising has given renewed hopes that the lows for the year are in and higher prices are ahead.
The most frustrating part about the XRP rally was the news put out by our competitors. We read the XRP rally was due to xRapid launching soon and also that a major Saudi Arabian bank had joined the Ripple network for international payments. I’ve been trading cryptocurrencies long enough to know that no one knows the exact reason why something happens in the market. This is a major buy spike that came out of left field.
I am certainly feeling better about Bitcoin now than I was 24 hours ago. The lack of volume and the price action felt like the market was heading lower. Today, however, we are back around the 6350 levels.
The problem is that it still not enough to make me buy more Bitcoin. We are still in the middle of the range between 6100 and 6500. This neutral zone is not an area that I want to be putting on trades. Yesterday’s jump was indeed positive, but need proof that it was not…
Ripple XRP Mega Breakout: What’s Next?
Zeex Expands Through Multiple New Partnerships
Supporting with Five Highlights, the New Generation of ColdLar Wallet Pro 3 Shocked Release
Altcoins2 weeks ago
Tron network gets a boost as crypto exchange ChangeHero lists TRX
Altcoins1 week ago
XRP could skyrocket above $50 if Ripple gets 10% of SWIFT’s business
Altcoins2 weeks ago
Latest price predictions of Ripple: Expected XRP price as 2018 ends now
Altcoins2 weeks ago
The Future of Cardano (ADA)
Altcoins2 weeks ago
Coinbase Becoming Custodian For 40 New Altcoins
Altcoins4 days ago
The Potential of TRON TRX Gaming Industry
Bitcoin2 weeks ago
New SEC Commissioner Supports Bitcoin ETF
Altcoins7 days ago
Tron (TRX) among the most promising blockchain projects out there, here’s why