Why the Bitcoin is falling
Today this question sparks minds of many Crypto traders and Bitcoin holders. In less a time span of less than 6 hours, it’s lost over $2000 value, crashing from $19,000 towards $17,000.
One of the key factors at play is the new crypto economy Cold War that have officially started yesterday after the US National Security Director announced that “Digital Yuan is a Threat to US National Security” and called SEC to regulate Chinese activities on the crypto market.
The market reacted to the last will of Trump’s administration to regulate (control) cryptocurrencies. On that notice, just a few days ago the Treasury Secretary Steven Mnuchin called to regulate the private crypto wallets before the end of he’s term.
This idea raised serious concerns among crypto holders, and considered to be harmful for the crypto market in general. Some experts even called it as “Giving China an upper hand” in the battle for the high-tech crypto market.
“All Exchanges Inflow Mean increased a few hours ago,” says the CEO of data analytics platform CryptoQuant. “It indicates that whales, relatively speaking, deposited BTC to exchanges. But long-term on-chain indicators say the buying pressure prevails. I still think we can break 20k in a few days.”While the uncertainty for the future of Crypto in the United States rises, some big holders of BTC dumped significant amounts of Crypto on the exchanges.
While many analysts predicted for it to reach $20,000 in this month, my prognosis was more conservative and based on real market dynamics. Based on the dynamics we can observe right now, the Bitcoin price is slowly recovering from the enormous dip and in a few days we will be back in the game.
Other cryptos will move after the Bitcoin dynamics and will recover. Some will do it sooner, some later.
For instance, the project Kusama which I noticed recently raised +3,7% today despite bearish market conditions.
The XRP on the other hand suffered the most with a -25% bleed.