Why has Bitcoin dropped for some time now. Does this mean that it is just a few whales that cause the bitcoin market to be fluctuating so much?

in #crypto4 years ago

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Someone asked this question and i think it's only right i shared with you guys some facts and answers you might agree with. Well if you must know, no whales manipulating Bitcoin. Whales are people who control millions or networks of millions. But with Bitcoin we’re talking about a couple of hundred of billions. Whales usually only end up impacting low capitalization coins with less than 100 million market cap.

One of the catalyst to the sudden 50% decline in price of Bitcoin within a span of 8hours was the 9.99% drop of the Dow Jones industrial average. The United States stock market experienced it worst sell off as panic over the Corona Virus pandemic increased.

A better question is what happened few years back that made it rise meteorically. So… Well what happened was that Bitcoin was finally starting to make it into the big scene after quite some time of dormancy especially after previous hacks and lack of success. Now, with new exchanges and platforms around people were able to sign up and bring new money. This worked fine until about September, when the price had gone up dramatically. However, the media caught wind of this price increase and it drove a frenzy of investing which meant that thousands of investors were signing up to the exchanges every day. That was enough to drive the price up. However, new know-your-customer requirements made it too difficult for new people to sign up quickly so new money started drying up and with no new money people lost interest. First, that loss of interest started going into other areas, that is, alt-coins. So there was a huge alt-coin pump. But then that was just money going from Bitcoin to alts so not much new money was coming in so the market got tired and people started quitting and that got spiraled. The current situation is that the people who are holding are holding hard but no new money is coming in, so there’s stagnation. It is also likely that there are some quitting and some new people coming in. The quitters will be gone for a while, the new people are going to hold until they make some kind of profit. The exchanges will eventually catch up to backlogs of sign ups. Also, new use-cases and applications are going to appear so applications will become more obvious. This will come sooner than people think as there is a lot of competition to be the first on the market because billions are at stake.

That is short term. But longer term, as real usability becomes more widespread Blockchain valuation will go into trillions and that will come with more growth, more bubbles and explosions and more drama. However, we will see some transformational changes as time goes on.
Expect the unexpected When it come to cryptcurrency