Why Bitcoin has Fallen in Price by $ 2600 in a few hours?
Table of Contents
Why Bitcoin has fallen in price by $ 2600 in a few hours? Two reasons.
The BTC price could not set a new maximum and rapidly dropped below $ 17 thousand. There is a risk that the cryptocurrency will fall in price by another 30%
Over the past day, the bitcoin rate fell 15%, to the current $ 16.4 thousand. The daily trading volume decreased slightly – to $ 51 billion. The share of BTC increased to 63.2%.
The First Reason
There may be two reasons for the rapid decline in the price of bitcoin. One of them was named by the head of the CryptoQuant analytical service, Ki Young Joo. The influx of coins to exchanges has skyrocketed over the past few hours, he said on his Twitter account. At the same time, BTC reserves are transferred by large holders, Joo stressed.
However, the market is still dominated by buyers, as evidenced by an analysis of the Bitcoin network indicators, he added. Therefore, Joo is confident that the rate of the first cryptocurrency will update its historic maximum of $ 20,000 in the next few days.
All Exchanges Inflow Mean increased a few hours ago.
It indicates that whales, relatively speaking, deposited $BTC to exchanges.
But long-term on-chain indicators say the buying pressure prevails. I still think we can break 20k in a few days.
— Ki Young Ju 주기영 (@ki_young_ju) November 26, 2020
The Second Reason
Another reason for the decline in the crypto market could be a message from the head of one of the largest exchanges Coinbase Brian Armstrong. In a Twitter account, he said that he had heard rumors about a possible increase in the regulation of the cryptocurrency market by the US government.
Last week we heard rumors that the U.S. Treasury and Secretary Mnuchin were planning to rush out some new regulation regarding self-hosted crypto wallets before the end of his term. I'm concerned that this would have unintended side effects, and wanted to share those concerns.
— Brian Armstrong (@brian_armstrong) November 25, 2020
Armstrong said the government has received a proposal to tighten control over personal OTC wallets, such as browser extensions or on-device apps. Armstrong suggests that Coinbase and other platforms will be required to identify the owners of such wallets before allowing funds to be withdrawn to them if such regulation is adopted.
Such controls will kill the growing use of cryptocurrencies and force US users to use foreign, unregulated crypto companies, Armstrong said. Bitcoin price began to decline within two hours after this message.
3 reasons why Bitcoin could drop to $ 12,000
Brian Kelly, CEO of BKCM LLC, warned about the risk of a decline in the price of BTC yesterday. According to his forecasts, the coin rate may fall to $ 12 thousand. There are three reasons for this:
- a sudden rise in the price of altcoins;
- a significant number of open long positions;
- a significant influx of new users into the industry.
Disclaimer: Bitxmi News is a news portal and does not provide any financial advice. Bitxmi's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Bitxmi News won't be responsible for any loss of funds.