Bitcoin continued its catastrophic November, and the price per night fell to a level unprecedented since May of this year. Although this is little consolation, it never hurts to study the potential causes after the accident, so without further ado ...
1. BitMEX - dumping in the market
Yes, we said that before ... One of the companies that makes a profit depending on the market is BitMEX. The liquidated positions on the futures exchange result in huge fees charged, which BitMEX does not hesitate to return directly to the market.
According to the analyst Alexa Kruger, BitMEX currently charges a commission of up to 7% of the total issue. A large percentage of this is sold back to the market.
Thus, those who accept bets with a high share of borrowed funds, potentially harm the entire market. Unfortunately, the lack of volume on BitMEX also plays a role.
2. Shaken confidence after falling to $ 7k
Whenever a significant drop in the price of BTC occurs, for example, on the eve of the weekend, up to 7 thousand dollars, many investors lose confidence. Concerned about further losses, they jump from the ship and accelerate the decline in assets.
This shaking off weak hands is not a big deal for long-term HODLers or those who want to increase their bitcoin portfolios.
3. Bitcoin does not always respond to macro variables
The US Federal Reserve continued to pursue a policy of mitigation and adaptation. Unfortunately, Bitcoin does not always respond to such macro variables.
And again, Kruger indicated:
This is such an illiquid / fragmented market that in the absence of a massive influx of new customers, several actions determine the direction. Micro, not macro.
4. Bitcoin whale stocks before halving
In a market that is readily influenced by the actions of a few, we cannot discount the possibility that Bitcoin whales are putting downward pressure on the price to stock up BTC before an event called halving.
The general opinion is that this will lead to a significant (and possibly constant) increase in prices, so it is quite reasonable to keep as many cryptocurrencies as possible.
Of course, this applies not only to whales.
Why do you think the price of bitcoins is now falling so much? Add your thoughts below!