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.
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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.
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Why Chinese New Year Affects Bitcoin (BTC)
Bitcoin (BTC) lost about $100 in value in the last week, and, while reasons behind the drop in crypto prices can often be hidden and unclear — this time, that is not the case. The reason for this drop is believed to be the celebration of the Chinese New Year.
The New Year celebration was over more than a month ago for most of the modern world. However, things are a bit different in China. This is a country which is considered to be one of the oldest ones in the world, with a long and complex history. The country’s traditions are fascinating to many around the world, as so many of them are different from western culture. One of these traditions is the Chinese New Year.
The New Year celebrations in China start on January 28th, which was a week ago. The New Year itself is today, February 5th, although the celebrations and festivities are going to last until February 19th. For the people of China, and all those around the world who follow the country’s tradition, this is the time to relax, take a break, and perhaps travel and visit friends and family. But, what does it have to do with Bitcoin?
China and Bitcoin
Those who are new to the world of cryptocurrencies have likely already heard many stories about China banning Bitcoin trading and…
EO.Finance Launches Highest Paying Crypto Referral Program of 2019
The EO Referral Program, already touted to be a significant addition to the ecosystem has been launched, and more details can finally be revealed. Offering 30% of transaction fees for each referral, it is expected to be the highest paying crypto referral program of 2019.
Each user will receive their own unique invite link, which can be shared with friends or via social media, in order to start earning 30% of the companies fees for every transaction made by someone who registered using their unique link. Furthermore, receive 5% of the fees for each new referral introduced by your own referral, increasing earning potential and adding even more benefits to an already feature-packed ecosystem. The fact the ecosystem supports credit and debit card transactions, as well as more than 40 cryptocurrencies means it will be even easier for you to start earning from your referrals.
The EO Referral Program will also extend to EO.Trade following launch, meaning it will be possible to earn from a single referrals transactions across multiple products within the EO ecosystem. It is important to note that the figure of 30% is significantly more than most competitors offer.
Payment will be made in the same currency as was purchased or exchanged. Withdrawal of the profits earned via the program can be made instantly, meaning you can earn immediately from your referral.…
Is Bitcoin (BTC) Ready for Another Surge?
It is no secret that Bitcoin (BTC) has had a rough 2018. The coin has dropped by over 80% from its all-time high in a matter of months, it experienced two market crashes, a constantly bearish market, and even troubles within its own ecosystem. Crypto investors spent the entire year hoping for a surge that never arrived, and since BTC is the most influential coin within the crypto space, its behavior usually dictates the pace for other coins as well.
Then, the year finally ended, and investors believed they could finally start anew, hoping to see BTC perform better in 2019. While Bitcoin is certainly performing better than in 2018, the current state of things is still far away from a rally. However, there is a possibility that this might change in the future.
Projects that could have sparked the next rally
As mentioned, crypto investors around the world were hoping to see a new price surge with the arrival of the new year. So far, this has not happened, and while there were several events believed to be able to boost BTC value, several complications prevent them from occurring.
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