Bitcoin drops in value and here is why

There is a saying that the higher the risk, the higher the reward. Many still go by this rule and try to get the most out of their investment. One of the more trending investments in the current day and age is ofcourse Cryptocurrency and with it brings its equal share of losses and profits as everything. It can be highly beneficial and has been ever since its induction in the financial systems back in 2010 and as seen with the number one Crypto Bitcoin (BTC), can take people from zero to becoming millionaires. Some people say that BTC peaked back in 2017 when it almost crossed $20,000 by reaching its all time high of $19,700. Others quote that Bitcoin will grow rapidly reaching new heights up to $50,000 in the next couple of years. Even though this is just speculation at this point, there is no denying the fact that Bitcoin is unpredictable and has monopolized the crypto market in the last decade. With day traders and long term HODLers affected the most by the price, the slightest Dip can send the masses into shock and with BTC bulls currently trying to keep the price above $10k, there is a chance BTC might decrease even more.

We have seen a lot of selling that caused BTC to fall below $10,000 this week. This was the first time since July that Bitcoin has dropped below the mark. While the bulls have been holding on desperately to the 5 figure mark, there is now fear, uncertainty and doubt in the market with experts stating that the value will drop even further in the next few days. Talking about volatility, just three weeks ago, BTC reached a yearly high of $12,500 and it looked like it would stay there but consolidated for price in the $11.5k range instead. While people expected a downtrend to come after the rise, such a sharp dip was still unprecedented. This fall was so massive that the supports at $11,000, $10,500 & $10,200 could not hold on and even traded at $9,995 before jumping up above $10k.

While experts have correlated this Bitcoin dip with the Stock market & gold, we can confirm one thing that the data from the last two days holds correct. With NASDAQ and S&P500 matching the graph of Bitcoin, there are two major factors that triggered the fall in price. One would be that miners sold off large volumes of BTC in a very short period and the second would be that the US Dollar index started to recover from a key multi year support area. Keeping in mind that if BTC went down, then so did the other cryptocurrencies. Ethereum, Litecoin, Dash and other major cryptocurrencies also took to the trend and followed in suit of Bitcoin with $ETH going below its $400 level. But there were exceptions to this trend. Protocol’s governance token YFI which holds a value way above Bitcoin fell but corrected soon after the dip and is still going strong. As well as Justin Sun’s TRON (TRX) which had a 40% growth in the span of that time. This is something that the TRX cryptocurrency had not seen since 2018 and it looks to capitalize on this new dip by the others. In other news, TRON is the best performing crypto in the top 100 coins by market cap. That is definitely saying something.

 
It’s not all bad news for Bitcoin though as this decrease in price might lead to more buying from those who felt that the price was too much. Same goes for other coins that have had huge dips since this could potentially be the opportunity some traders were looking for. What are your thoughts on the price dip? Did it have anything to do with the stock market? What factors were involved? Which is the best coin to invest in? Leave your thoughts below in the comments and we will definitely feature you on our platform! Also, do remember to check out our exchange, it’s pretty good!