What Causes the Sharp Decline in Bitcoin (Reasons for Bitcoin Crash)
What causes the sharp decline in Bitcoin? Why is this happening and what impact
What causes the sharp decline in Bitcoin? Why is this happening and what impact does it have on investors? What are the reasons behind the significant drop in Bitcoin prices?
There is a belief in the cryptocurrency field that “if we assume a country is considering implementing new sanctions to prevent the country from using digital assets or blockchain technology for innovation and promoting economic development, it will be subject to scrutiny by regulatory agencies and law enforcement.” However, this does not mean that the price of Bitcoin will be completely excluded in the end. “People are forced to protect themselves from potential market manipulation by selling all their cryptocurrencies they hold,” says an industry insider. “They have no choice.” However, with increasing uncertainty about the US presidential election, Bitcoin has started to decline. Recent events suggest that some people are worried that the government’s unwillingness to admit its mistakes is reasonable and could potentially cause a financial system collapse – therefore, many other factors could lead to further decline in Bitcoin.
According to CoinMarketCap data, as of the week ending August 10, the BTC/USD trading volume reached a historical high of about $356 million, exceeding the January level. At the same time, in late June, the ETH/USD trading volume was only $110 million. (Cryptopotato)
Reasons for the Bitcoin Crash
According to Bitcoinist data, the Bitcoin crash last week led to market uncertainty. As of Wednesday morning, the price of Bitcoin dropped below $30,000, experiencing a surge of more than 15% in the past 24 hours, similar to previous occurrences.
Analysts point out that despite the current price trend of Bitcoin being different from the bear market period in 2018, investors are concerned about a potential significant pullback in the future. Additionally, due to pressure from US regulatory agencies and the instability of global financial markets, some investors are moving their funds to exchanges or other platforms to avoid higher-risk cryptocurrencies, thus causing panic selling and mass liquidation, which triggered this rebound.
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