Why is bitcoin falling? Opinions of analysts about the sharp decline

Bitcoin price dropped from $17,000 on average to $11,500 today. Analysts attributed this huge decline to the extraordinary increase in Bitcoin price over the past month.

Still 60 percent on a monthly basis

Bitcoin was at $8000 these days last month.. At the time of the news, it is trading at $ 12600.. On a monthly basis, there is an increase of 60 percent.

Reasons for optimism

With its strong network effect and the support of leading financial institutions, Bitcoin is still in the best position to enter the traditional financial market.

In addition to the fact that the world’s largest futures exchanges such as CBOE and CME have started trading Bitcoin futures, Goldman Sachs is also preparing to open a Bitcoin and digital currencies trading desk.

Sachs’ Michael DuVally he said:

“We are exploring how we can best serve customers to respond to their interest in digital currencies.”

In the short term, cryptocurrency analysts, including Crypto Rand, are looking to increase investors’ interest in volume. suggested that they be wary of Bitcoin’s price trend due to the lack of. Crypto Rand emphasized that as of now, investors are not buying from the bottom.

ShapeShift CEO Erik Voorhes made another point after the decline.. Voorhes said that in Bitcoin, transaction fees are starting to cost more than money transfers via bank:

“Dear Bitcoiners, when will you realize how problematic these transaction fees are? Average fees more than $40 per transaction. It was $4 a year ago. One year ago 0.4$. Faster than price, growing exponentially. We spent $4800 to move 15 BTC in a single transaction.”

Several analysts say that due to the rapid increase in transaction fees, Bitcoin’s dominance among cryptocurrencies has been shifted to other digital currencies with lower fees and better scalability features.

The effect of FUD

Some analysts consider FUD (Fear, uncertainty and doubt) to be one of the main reasons for the price drop.

Social trading platform Mati Greenspan, senior market analyst at eToro, said, “It is now clear that the entire crypto market is advancing at a rapid pace.. However, recently, FUD has captured the market.” He said.

We are shifting from a Bitcoin-centered market to an altcoin-centered market

Finally, the Cryptobud Youtube channel, whose comments on cryptocurrencies we value, thinks about this sharp decline in its latest video:

“There is a shift from a bitcoin-centric market to an altcoin-centric market. It won’t be short and it’s not an accident. In addition, panic sales during the fall of Bitcoin also have an effect on the price decline.. But these declines are normal, the constant rise of everything abnormal. This is not possible and everything will not go up all the time.

I think this is a money transfer game as you all know.. Money has recently switched from Bitcoin to Bitcoin Cash. When we look at the history of Bitcoin Cash, we see unexpected rises and falls.. There’s obviously been a lot of trading going on here.. Of course, this money will return somewhere, but it can be Bitcoin or altcoins.

After Bitcoin’s decline so much, the price will definitely rise to the level of 20 thousand dollars.. This drop has given the market a breath of fresh air.. If it stayed around $20,000, it wouldn’t have changed much.. This drop will make it easier for people to buy Bitcoin.

From now on, Bitcoin will increase, but altcoins will increase more and reach an incredible level, I can say that. ”

CCN, Forbes, Cryptobud