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.
VanEck cancelled their ETF after only 4 BTC worth of blocks sold.— Bryce "Lidenbrock" Weiner (@BryceWeiner) September 23, 2019
So far Bakkt has doubled that to a whopping 8 BTC.
Institutional money... ain't excited.
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.
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.