Three Reasons Why Bitcoin Price Has Collapsed at Around $8,000
We’ve seen Bitcoin suffering tremendously this week, struggling to stay above $8,000. But with everything happening in the crypto world, the BTC should have thrived. So what are the reasons behind this drop?
Bitcoin (BTC) drops by 15% on September 24, and then 18% more
The BTC price dropped on Tuesday by 15%, and then on Thursday it dropped by 8%. By today, it further dropped by 10%. As of the time of writing, the BTC is trading at around $8,100.
Why is the BTC price falling? Here are the opinions of the analysts and experts that explained on Twitter some of the reasons of the collapse.
Bitcoin Futures Launch on Bakkt Was Overhyped
With the launch of Bitcoin futures on Bakkt, people believed Bitcoin price would go up. Even crypto experts agreed that Bakkt would drive the price up, but on the first day of the launch, Bakkt only saw a small BTC volume – 13!
Bitcoin Bull and analyst with the CNBC, Brian Kelly, stated that even though it had a slow start, the potential of BTC trading on Bakkt will be seen in the long run. The same thoughts were echoed by John McAfee.
The Slow Libra Launch
Facebook announced they’re launching their own cryptocurrency in 2020, Libra. BTC would take advantage of cryptocurrency attracting more institutional investors, so the launch would have been beneficial. However, Libra faced plenty of restrictions, starting with the Japanese central bank, the Chinese central bank and even France and Germany. The last two countries stated they would not allow Libra on the UN’s territory.
China is working on their own digital coin ‘China Coin,’ and France even suggested Europe should have its own digital currency as well.
These factors could have made the Bitcoin price go down.
User Sells $1.2 bln in Bitcoin
According to a Redditor’s post, the analytical website bytetree.com noticed the massive drop of price when a user transferred $1.2 bln in Bitcoin and sold it through a crypto exchange.
Experts Stay Bullish on Bitcoin
Although the current situation of Bitcoin is not great at all, experts are positive and remain bullish on Bitcoin. The founder of Aluna.Social forecasted on her Twitter page that the Bitcoin price will no longer trade below $10,000 in the near future.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.