Why can the Bitcoin Rate Continue to Fall?
Why can the Bitcoin Rate continue to fall?
In 5 days, the first cryptocurrency fell by more than 15%. The head of analytical service CryptoQuant, Ki Young Ju, warned that the decline could intensify, and explained who it would depend on.
The bitcoin rate over the past day has decreased by 4%, to $ 35 thousand, at a minimum, dropping below $ 32.5 thousand. The first cryptocurrency has been falling in price since January 8. Then it set a new price maximum of $ 42 thousand. Then the BTC price began to fall rapidly and reached $ 31 thousand, according to data from coinmarketcap.com.
The fall in the bitcoin rate may continue, warned the head of the analytical service CryptoQuant Ki Young Ju. In his Twitter account, he named three reasons for this scenario.
Nothing has been changed since yesterday.
We might have second dumping.
— Ki Young Ju 주기영 (@ki_young_ju) January 12, 2021
The expert considers the sale of Bitcoin stocks by miners to be the first of them. As a second factor, the analyst noted that there is no fixed inflow of stablecoins, such as USDT, to exchanges. This could indicate an inflow of capital to trading platforms to buy cryptocurrency.
But on the other hand, BTC comes to exchanges, Ju said. From his point of view, this is the third reason for the imminent fall in the price of bitcoin. Over the past day, investors have sent 15 thousand coins to trading floors, the analyst said. This is probably done to sell and make a profit.
In early January, Sonny Singh, the commercial director of the cryptocurrency payment system Bitpay, warned of the risk of a sharp drop in the bitcoin rate to $ 20 thousand. This is possible if institutional investors start selling cryptocurrency in a sell-off of “unprecedented proportions,” Singh explained.
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