The prices of Bitcoin and most of the cryptocurrencies today keep going down and different opinions and speculations regarding the reason behind it are all over the internet. Since you are here reading this, I suppose you are also wondering about the possible reasons on why the price keeps on going downwards. Hence, after reading this, I hope the information will help you decide on what would be your plan on the cryptocurrencies you hold or if you are planning to purchase one right now.
- Many people have lost their confidence on Bitcoin and cryptocurrencies in general.
If you are going to enter the crypto industry, most especially trading, you must be really courageous and great in making a decision. You have to expect that you and other people can build doubts because it has not been long enough since this technology entered the market.
If you could remember, just a few months ago, people had gone crazy because the price of Bitcoins and most cryptocurrencies are continually going higher. Predictions about it reaching an All Time High (ATH) was the talk of the town. However, the movement of prices did not go the way they wanted and people were disappointed. At first, many crypto enthusiasts thought that the prices will only slip a bit, but months passed and prices are declining even reaching lower than $8,000. Because of this, many have completely lost their confidence to the technology and criticisms are thrown towards the whole crypto industry.
- People are dumping their cryptocurrencies
According to many reports, one of the main and biggest reasons why Bitcoin’s price was extremely low and has not been going up since then is because a group of people had purposely dumped a really huge amount of Bitcoin; and this act is still affecting the price of Bitcoin until today.
As a general rule, whenever a large number of Bitcoin is being sold on the market, it will drag Bitcoin’s price down since the sell pressure increases.
- Bad Media
Media is very crucial in determining the fate of industries in the market. You can even say that it can make the business or it can break it. Unfortunately, at present, the crypto industry is one of the most criticized technology.
Because the prices of Bitcoin and other cryptocurrencies are volatile, it is very easy to create assumptions and speculations about what could happen next to it. And since this technology is very new, most of the information we can get is mostly coming from the media. Whether be it on the news or our different social media platforms.
Since most of us rely heavily on what we can read or see, it can be concluded that negative news or feedback about crypto will lead to more people being discouraged to purchase or invest in Bitcoin and other cryptocurrencies.
- People are HODLing their Bitcoins
The low price of Bitcoins and most cryptocurrencies has been stagnantly low, and another reason for this is that if others dumped their cryptos, some were strategizing by putting theirs on hold. This is because in 2020, the halving season is expected to raise the prices of the Bitcoins and almost all of the cryptocurrencies in the market even. These people are indeed just waiting for the right timing because for the moment money continues to melt Bitcoin or should we say Geld melt Bitcoin.