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Bitcoin Price Collapse: Possible Reasons

  • Yuri Molchan
    📰 News

    As Bitcoin struggles to stay above $8,000, here are the most probable reasons for its collapse on Tuesday, which led many to believe that the market is no longer bullish

Bitcoin Price Collapse: Possible Reasons
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Contents

After the Bitcoin price recorded a drop by 15 percent on Tuesday, two days after that it went 8 percent lower. Overall, after the first decrease, the BTC price dropped another 10 percent by today.

At press-time, the major cryptocurrency is trading slightly above $8,000.

Meanwhile, experts and community members on Crypto Twitter offer their reasons of the BTC price collapse. U.Today has brought them together in one article for you.

Overhyped launch of Bitcoin futures on Bakkt

The community looked forward to the launch of physically settled Bitcoin futures on Bakkt and many hoped it would make Bitcoin price surge. Many crypto experts on Twitter frequently mentioned Bakkt as a potential price driver, along with the upcoming BTC halving in May 2020.

However, as reported earlier by U.Today, the first day of trading on Bakkt resulted only in as little as 13 BTC-volume. This coincided with the first losses of Bitcoin price, as per Forbes.

However, Bitcoin bull, a CNBC analyst Brian Kelly believes in the long-term potential of BTC trading on Bakkt. John McAfee also reckons that in the long run Bakkt could attract the attention and money of institutional investors.

Libra’s launch slowdown

Since the social media behemoth Facebook spread the word about planned launch of its Libra-fiat-backed cryptocurrency in 2020, the Bitcoin price was steadily rising on expectations and also since the example of Facebook attracted other institutional investors.

However, in the course of its preparations, Libra faced multiple restrictions from regulators around the world with even Japanese central bank fearing that Libra would disrupt the country’s if not global economy.

The central bank of China (PBOC) accelerated work on its own digital currency ‘China Coin’ that it had been busy creating for about five years already.

Recently, France and Germany stated that they would not allow Libra to be developed on the UN’s territory. The French government even suggested that Europe should launch its own digital currency.

This is another possible reason for the recent Bitcoin collapse.

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Major sell-off might have driven the BTC price collapse

As reported by U.Today earlier in the week, a Redditor published a post with data from an analytical website bytetree.com. The data shows that the massive drop of the Bitcoin price took place after a user transferred $1.2 bln in Bitcoin to a crypto exchange and then sold it.

The post was accompanied with some comments of the bytetree.com team.

Experts making bullish forecasts

Despite the current red market, many experts stay positive and bullish on Bitcoin. One of them, the founder of Aluna.Social, a gamified social trading terminal, published a forecast on her Twitter page, saying that this is the last time when Bitcoin is trading below $10,000.

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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Bitcoin Price Likely to Decline to $7,800: Crypto Analyst

  • Yuri Molchan
    📰 News

    Bitcoin is to find support at $7,800 or recover to $8,300, an analyst writes, but either way ‘continuation of the ranging on either of the levels is going to occur’

Bitcoin Price Likely to Decline to $7,800: Crypto Analyst
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Over the last few days, Bitcoin has been trading below the $8,500 area. At the moment, it has recovered to $8,258 after the recent slip below the $8,100 level.

Analysts have been bullish on BTC in the long run, however, the nearest BTC price movements are expected to be bearish.

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The crypto analyst @CryptoMichNL believes that there are two paths ahead of Bitcoin at the moment. If it fails to recover to $8,300, he says on his Twitter page, then the market should be ready for the flagship coin to drop and find support at the $7,800 or $7,300 levels.

Whichever way it goes, ‘continuation of the ranging on either of the levels is going to occur’.

The analyst tweeted this forecast twice with an hour pause.

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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