Bitcoin (BTC): 5 raisons de sa chute de prix
After two weeks of recovery and positions above $8,000, news and moods weighed down on Bitcoin to take it back toward the $7,500 level. What are the reasons?
Bitcoin (BTC) slid again, gradually declining over the past 24 hours toward $7,500. Even during the recent bull run which saw BTC near $8,500 again, the price seemed shaky, and predictions saw the asset return once again to the $7,200 level. BTC fell to $7587.86 at noon time UTC on Tuesday.
Some bearish attitudes reemerged, but here are five reasons for the most recent price slide:
- HitBTC announcing “hardware problems”: The recent lockdown on the HitBTC exchange caused immediate jitters, though the BTC market did not react immediately. BTC is already too liquid to react to separate news, but the event must have taken its toll on general moods in the crypto world. HitBTC announced it had resolved the issue, and later warned of another planned maintenance shutdown, but the BTC slide expanded on Tuesday.
- Bitcoin ETF license: The Winklevoss Bitcoin ETF was denied license by the US Securities and Exchange Commission (SEC). This move, while somewhat predictable, led to re-evaluation of the probability that the CBOE ETF, scheduled for a decision on August 10, would pass muster. https://twitter.com/iamjosephyoung/status/1023432299990331392 The ETF was seen as immediately causing a price surge, and helped the markets move in the past weeks - hence, the looming potential disapproval is making the mood slide.
- South Korean taxation of crypto exchanges: Recently, rumors surfaced of South Korea potentially building legislation to rescind the tax benefits of crypto exchanges. This news of a worsened regulatory climate often serves to bring down confidence in Bitcoin. The news just adds to the downside based on the looming ETF refusal.
- Hidden trading anomaly: Altogether, Bitcoin trading volumes have hovered around $4 to $5 billion in 24 hours. However, a closer look reveals a stunning anomaly: on BitForex, 24-hour volumes exceed $6.9 billion in the past day. CoinMarketCap has excluded the volumes, and the huge disparity may be causing concerns of manipulation. Still, the price on BitForex is similar to that on other exchanges. BitMex, one of the few exchanges offering BTC derivatives, reveals volumes above $6.7 billion, also excluded from the statistics. The strange moves, possibly revealing faked or inflated volumes, is also contributing to a loss of trust in crypto trading.
- Tethered again: Bitcoin’s trading profile has changed as the tides turned, revealing that funds were flowing back from altcoins into Bitcoin, and also into Tether (USDT). Indicators for that movement of funds include the dominance of Bitcoin in terms of market capitalization, extending to 48%. Additionally, USDT trading now takes up more than 21% of the entire crypto market volume. At the same time, trading against the Japanese Yen, which is usually around 50% of all trades based on CryptoCompare data, has been shrinking, going down even below 13%.
While Bitcoin has had relatively stable periods of predictable price movements, large peaks and drops happening within hours are still possible, caused by a variety of factors related to trading speculation, including bot activity, panic, or outright attempts at price fixing. The latest downturn resembles the daily drops in past weeks, which took BTC down to as low as $5,800.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.
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