Why is bitcoin going down
There are many speculators out there each coming out with their own theory as to why bitcoin is going down, and I am one of them. Some believe that bitcoin’s downtrend is due to:
- Dell is selling their first bitcoins.
- The whales (big Bitcoin holders) are selling.
- Investors think Bitcoin is still in Bubble territory.
- There is no real reason to go up, and crypto in general doesn’t seem to like stability, so it either goes up or down.
- A lot of people have their summer vacations right now. People who hold BTC sell some to get money for travel and vacations.
- Sales of Etherium. Around 19 million Ether has been sold for 2000 Ether per Bitcoin. That is 9500 Bitcoin being sold in a couple of days.
- Miners are selling and no new investments are being made.
Other’s are anticipating a new phase of “The Real Bitcoin Economy”. According to CCN:
If my analysis is correct, we are beginning to see a structural downward trend, and this trend is good, because it shows that the Bitcoin economy is becoming real, with less speculation and more use as a currency for every day’s life. This is the first phase of the real Bitcoin economy.
Coindesk has pointed out a different theory that states that Moore’s law is responsible for bitcoin’s downfall.
The problem for bitcoin miners is the fact that overinvestment is starting to create an unsustainable trend. Demand, caused by ever higher difficulty, is outstripping development. Ideally miners would need chips capable of breaking Moore’s Law and then some.
My theory as to why bitcoin’s price is falling is because the big hype/bubble has burst and we are just waiting for the market to stabilize and for bitcoin to fall to a set price. Bitcoin’s bubble is very similar to the dot com bubble. To prove that lets compare a chart of the dot com bubble with that of bitcoin price.
Dot Com Bubble Chart
We can see many similarities between the two graphs. We see a high peak followed by a rapid decline followed by a rebound. While history does not repeat itself it still follows similar patterns. At this point it is obvious that the bitcoin bubble has burst and we are just waiting for a rebound. Those who are brave enough to trade in this bearish market might just get lucky enough to catch bitcoin at the bottom.
Some trading strategies for you bullish traders are to slowly buy in increments on the way down when you feel that a rebound is coming soon, don’t ever put all your eggs in one basket but scared money doesn’t make no money as Young Jeezy said himself:
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