Bitcoin's Drop Below $8,000: 5 Key Reasons Explained
5 Reasons Bitcoin (BTC) Price Has Dropped Below $8,000
The leading digital asset once again showed a significant crash of a few hundred dollars, failing to maintain the $8,000 price point.
Bitcoin (BTC) seems unable to hold onto the $8,000 level, crashing for the second time in a couple of weeks. The leading digital currency wiped out some of its recent gains over the past day, returning to the $7,600 range.
While Bitcoin price is inherently volatile, this time there were several factors working to bring the price down:
- VanEck ETF Delayed: The U.S. SEC choosing to delay the decision on the exchange-traded fund was viewed as the more favorable outcome. Now, there is yet another period of discussions and clarification before the next decision deadline, and the lack of a positive trigger has caused the momentum to slow down and BTC price to slide.
- Non-Organic Growth: It is also possible that the climb of BTC last weekend was excessive. BTC also slid from the $8,000 range down to $7,300 last Thursday, only to make a fast recovery to above $8,200 within hours. But the past week has seen increased volatility, with a pattern of fast price spikes followed by crashes. Those periods of heightened activity may be indicative of a concerted effort to manipulate the price.
- Overdue Pullback: BTC has been steadily climbing in the past month, bouncing off the $4,000 level. In the past, BTC prices have regularly cycled through 30% losses, as traders note. https://twitter.com/Josh_Rager/status/1131039202286755845 BTC stability has been an anomaly lately, and rapid climbs combined with crashes have happened, even if the general trend for BTC was up. During the fall of 2017, just months before the absolute peak, BTC crashed deeply following negative news on China’s bans of trading and ICOs.
- Altcoin Outflows: This is a minor factor since BTC is currently dominating 57% of the entire market cap of digital assets. Ethereum (ETH) is rising in dominance, leading to at least some BTC selling. But this is a longer-term trend, and a side factor for the current price drop.
BTC prices are still unpredictable, and there are still fears BTC may revisit lower levels for a dramatic crash. BTC has shown it is still capable of $1,000 days, but they can be both, up or down.