Was Bitcoin’s Drop in Early 2018 Predictable?
Although Bitcoin was notorious for not being affected by normal market manipulations from the very beginning, the color of the business has changed a bit lately.. Although the sharp decline that the ancestor of cryptocurrencies experienced at the beginning of the new year brought a serious chaos in the market, many crypto money experts tried to explain that this is perfectly normal with examples from the past years.
In particular. The main premise of the experts who support this view is that it coincides with the new year according to the Kamer calendar, which is an important date especially for Chinese users and investors.. It is a well-known fact that at this time of the year, Chinese users withdraw Bitcoins from their accounts, pay significant sums to their loved ones and receive gifts, and some investors think that Bitcoin makes a bottom every year at this time of year.
At the same time. The Chinese don’t just buy gifts.. It is stated that the Chinese, who spend significant amounts of money for holiday expenses at this time of the year, have therefore issued Bitcoin from their hands.. Just like Christmas time for Christians, the beginning of January is an important date for the Chinese.
Blame the Moon
Mid-December was literally perfect for Bitcoin investors. Bitcoin broke the all-time record and reached the $20,000 band and things were going very well.. However, whatever happened, things turned upside down with the start of the new year. At the beginning of January, the value of this cryptocurrency had even dropped below $10k. Speaking on the subject, Alexander Wallin, CEO of the famous trade sharing platform Sprinkle Bit, expressed his views as follows:
“It is a coincidence that Bitcoin falls these days every year. It would be a big mistake to. Everyone knows what it’s all about. a routine process. Also, according to the Lunar calendar, during the New Year’s Eve, the Chinese turned their cryptocurrencies into cash, bought gifts for their loved ones, and made payments for their holiday plans.. The Chinese, who have made their holiday plans as of February 16, consider the beginning of January appropriate for the reservations of their destinations, and this is another factor contributing to the decline in the market.” talking about the effect of. As it is known, China is the center of the crypto money market and holds most of the volume with other Asian countries.
Strange Effects Are Experienced
Whether Bitcoin is open to manipulations is a very serious debate. subject. According to some opinions, Bitcoin is less susceptible to manipulation compared to other traditional stockbroking businesses.. However, some experts argue the opposite and agree that a currency should have a stable value.
As proof of the first view, let’s consider the North Korea and the United States crisis in December.. After the crisis between the President of the United States, Donald Trump and North Korean leader Kim Jong Un, which went to a showdown over the nuclear bomb, the global stock markets reacted badly to the event, and almost % It was depreciated by 1. However, at that time, Bitcoin managed to stand firm. in fact, on the contrary, it increased its price.
However, according to some theories and ideas, Bitcoin is quite manipulative.. Experts, who argue that the volatility in the price of something that is considered as the footprints of the financial revolution in the world and shown as the currency of the future, is not right, use this as evidence against Bitcoin.
However, nevertheless, in the last 4 years. It can be said that the year-on-year declines in Bitcoin have now become chronic.. It may be the right choice to postpone this a little bit, at least in the periods when sales are planned.. Let’s see what this time next year will show us?
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