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Bitcoin Price Drop: Why the Price of BTC Fell Off a Cliff This Week

 Bitcoin fell off a cliff this week, and it's anybody's guess as to why. In a single hour on Wednesday, bitcoin lost more than $1,000 in value. Ouch! That's a 26 percent drop in just a single hour. If you thought bitcoin was volatile before, you ain't seen nothing yet. Experts believe that the crash this past week is due to the Asian bitcoin exchange BTC China's imminent closure of trading. It appears that investors were finally getting nervous about China's recent crackdown on cryptocurrencies — not just bitcoin but all other altcoins as well.

Bitcoin Price Drop: Why the Price of BTC Fell Off a Cliff This Week


BTC Price Drop Overview



Bitcoin has seen a significant drop in value over the last few days. On September 5, 2019, BTC was valued at $10,300. By September 10, its value had dropped to $9,800. The market cap for Bitcoin is currently at $180 billion.


The price drop is due to various factors including:


  1. China's recent crackdown on cryptocurrency exchanges and ICOs
  2. A lack of interest from investors due to the lack of liquidity in the marketplace
  3. A recent report by Goldman Sachs that predicted a continued downward trend in cryptocurrency prices


 Bitcoin is crashing, and it's all anyone can talk about.


The price of Bitcoin has been dropping since the end of 2017, when it reached its peak of nearly $20K USD per coin. Since then, the value has decreased by more than 80%, and many are wondering what's going on.


Bitcoin is a cryptocurrency that's used for peer-to-peer transactions across the globe. It was first created in 2009 by an anonymous founder (or group of founders) named Satoshi Nakamoto, who used it as a way to avoid third parties like banks and credit card companies when making payments between two people. The idea was that this would make transactions more secure—but now we're seeing why that might not always be the case!


Why Is Bitcoin Going Down?


There are multiple reasons why Bitcoin has been going down so much lately:


  1. Because of the fork.
  2. Because of the price run-up this year.
  3. Because of the news about China closing their exchanges.
  4. Because of the news about Goldman turning bearish on BTC.
  5. Because whales want to sell, and there are not enough new buyers to support them.
  6. Because many people got in because they heard bitcoin was going up, and they're getting out now because they hear it's going down.
  7. Because a lot of weak hands got in when it was going up, and they're selling now that it's going down and they don't want to take a loss.
  8. Because the top is probably in on this rally at least for now, and we could see BTC go a fair bit lower than it is now before another rally starts.
  9. Because of Mt Gox selling off coins from its bankruptcy estate.


There are several different reasons why Bitcoin prices are dropping right now, but that doesn't necessarily mean we're headed for a bear market yet.


BTC has been going down because of the following:


  1. Many investors were pulling their money out of BTC in favor of other coins.
  2. The South Korean government made it known that they are willing to crackdown on unregulated exchanges.
  3. China's government is cracking down on cryptocurrency.
  4. There is a Bitcoin Cash fork coming up soon, and many big traders are looking to lock in profits ahead of this event.
  5. BTC is still one of the most profitable investments you can make right now, but many people aren't willing to bet their whole retirement fund on crypto yet.


All in all, there have been several factors that have caused the recent price drop in BTC.


BTC Price History


Bitcoin has been a roller coaster ride in the last few months. But why is bitcoin going down?


The price of bitcoin has been steadily declining since it hit an all-time high of $20,000 in December 2017. The price of bitcoin has dropped to around $5,000 as of November 2018.


So what happened? Why is bitcoin going down? And will it keep going down?


There are several reasons why this happened:


  1. Bitcoin was never meant to be a currency; it was designed as a payment system. When the price of bitcoin spiked, people began using their bitcoins like dollars or euros, which drove up demand and caused the price to rise even further. As its value grew higher and higher, more people began investing in bitcoin—and when they did so, they drove up demand even further. At one point there were even stories about people who had bought bitcoins for $100 back when they were worth only pennies being able to sell them for millions!
  2. Bitcoin is the world's first cryptocurrency, a form of electronic cash.
  3. It was invented by an unknown person or group of people using the name Satoshi Nakamoto and released as open-source software in 2009.
  4. Bitcoin has been a roller coaster ride in the last few months.
  5. In February, one bitcoin cost $12,000, then it went up to nearly $20,000 by early December.
  6. A lot of us may be looking for reasons for this crash.
  7. Here are 7 reasons why bitcoin is currently going down.
  8. Overstock's CEO made headlines recently with his decision to sell the majority of his stock in his own company and invest into bitcoin instead.
  9. The value of the tokens issued by ICOs has significantly decreased in recent months.
  10. The South Korea government announced plans this week to more heavily regulate the cryptocurrency market within its borders.
  11. There is now no doubt that the crypto market has entered bear territory after some big names have stated that the cryptocurrency market is about to crash even further.


Price Crash Ingredients


Bitcoin has been a roller coaster ride in the last few months. But why is bitcoin going down? Why did the price of bitcoin drop so much?


As you may know, bitcoin has been on a downward trend for the last couple of months. Is this just another one of those times when people are panicking about a supposed "crash" and selling their coins, or is there something more to it? Is there some kind of fundamental reason for this drop that we should be worried about?


The answer is yes: there's definitely something going on with bitcoin. But don't worry! It's not as bad as you'd think. In fact, it's actually pretty good news for everyone who invests in cryptocurrencies like bitcoin!


So what happened? Why did the price crash so badly? Well, there are two main reasons why:


  1. People panicked and sold their coins because they were worried about what might happen next and wanted to get out before things got worse. This kind of behavior creates a self-fulfilling prophecy—when everyone sells their coins at once, it lowers demand and therefore makes prices go down even further than they normally would have gone. This creates more panic among investors who might feel like they're missing out on profits
  2. The first reason is that the price had been going up too fast. In December it was only £16,000.
  3. The second reason is crypto has come under attack from governments and banks.
  4. The third reason is that many of the big investors have taken their cash out of bitcoin and bought Ethereum instead.
  5. The fourth reason is that there's a lot of uncertainty about what will happen to bitcoin in the future.


There are many reasons why Bitcoin prices crashed in the last few months.


BTC Price Forecast


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1) The Mt Gox Scandal.


Mt Gox was once one of the largest cryptocurrency exchanges in the world. It handled over 70% of all Bitcoin transactions at its peak. In February 2014 Mt Gox suddenly shut down and filed for bankruptcy protection after a massive $460 million USD theft from their exchange. This scandal shook confidence in Bitcoin and ultimately lead to a sharp decline in its value over time.


2) The Hard Fork Debate


In August 2017 there was a controversial hard fork debate surrounding Bitcoin Cash (BCH). This debate divided the community into two camps: those who supported BCH and those against it. The supporters argued that BCH would offer more efficient scaling solutions than BTC while those against it believed it would only cause confusion among users and increase transaction fees on both chains due to network congestion caused.


It's likely that the price of bitcoin will recover, but it's hard to predict how long that will take


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First of all is that the Chinese government started to crack down on cryptocurrency exchanges and also made it illegal for citizens to participate in ICOs (Initial Coin Offerings). This led to a sharp decline in trading volumes and an increase in volatility.


Secondly there have been issues with the blockchain technology which is used by most cryptocurrencies. A bug was found in Ethereum's smart contract system which allowed hackers to steal millions of dollars worth of Ether tokens from multiple ICOs (Initial Coin Offerings). In order to prevent further attacks like this one many exchanges including Coinbase suspended deposits and withdrawals for several days while they worked on fixing their systems.



The price of Bitcoin fell off a cliff this week, dropping to a value of $360 USD per BTC, the lowest it's been since this time last year. While there's no exact reason for the drop (not yet, at least), there are a few factors that are likely at play. First and foremost, China probably had a significant impact on the decline in value. Earlier this month, the People's Bank of China announced that they were barring financial institutions from dealing with Bitcoin exchanges. So long as China isn't using Bitcoin as a form of currency, it's not hurting them. However, many people argue that this development is what caused the crash.

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