At a time when a lot of people expected Bitcoin to surge in price, the world’s leading cryptocurrency heads in the opposite direction. A market that offered so much potential towards the upside has practically turned bearish over the last few weeks. The question in the mouths of many users is “Why is Bitcoin price is falling?”
After Bitcoin recovered from the protracted bear trend of 2018, the hopes of users were raised. Independent analysts and experts came out of their closets to offer their opinions and make very bullish predictions. Going by their predictions, one would rarely expect what is happening to the leading cryptocurrency by this time of the year. To complicate matters even more, Bitcoin is dragging the entire market with it into this bear trend.
The ending of 2019 was expected to be a bullish period for Bitcoin. Many users expected a similar run, like what we saw towards the end of 2017, before Bitcoin hit its all time high price. $20,000, $50,000, $100,000 were some of the marks that were predicted for Bitcoin in 2019. Although there are still a few more weeks before the year ends, current market outlook does not support such predictions.
Considering the current state of Bitcoin, and the desire to know what may happen in the future, the community wants to know; “Why is Bitcoin price falling?” The creator of Cardano, and one of the biggest names in the industry, Charles Hoskinson sums up the current situation in just one tweet:
Bitcoin's price is going down? Remember everyone, after the FUD, news trading and manipulation clears out, we still have a global movement that's going to change the world. We will see 10k btc again and welcome 100k. Crypto is unstoppable. Crypto is the future pic.twitter.com/9vlgH4S7u2
— Charles Hoskinson (@IOHK_Charles) November 22, 2019
Hoskinson also seized the same opportunity to predict what would happen to Bitcoin in times to come, despite the current situation. The reasons identified by Hoskinson which answer the question, “Why is Bitcoin price falling?” are as follows:
Fear, Uncertainty and Doubt (FUD)
The Bitcoin market is influenced by sentiments. What people feel and expect will always determine how they react towards the market. At the moment, a lot of things seem to be happening around Bitcoin and cryptocurrency at the same time. With Facebook’s Libra project still under scrutiny, and governments planning to establish their own digital currencies, many people are uncertain about the future.
Other major events like the imminent Bitcoin halving also plays on the mind of users. All of these events mixed together make users not to be sure of what could happen next to Bitcoin. Hence, the majority of them have decided to sit out the period and stay away from the market for the time being. This scenario has diminished the demand for Bitcoin, leading to a fall in price in what now looks like a bear market.
News is a powerful tool in any speculative market. Not just news, rumours too. Hence, with all the events that are happening around Bitcoin, a lot of users have their ears glued to the ground. To this effect, we must admit that what comes out of mainstream media these days haven’t really favoured Bitcoin. It is the resistance from government and other negative developments that spread quicker.
Perhaps, Bitcoin is having its own share of typical media treatment, where negativity spreads faster. Whatever the case, what comes out of the media lately is playing a part in how users are responding to Bitcoin.
Whales play a big role in how the markets turn out. These large volume traders have been accused of manipulating the market in their favour from time to time. The story behind this is that they force the market to lower prices. When this happens, they will re-enter to buy Bitcoin at a much lower rate. This is a market manipulation exercise that is however not illegal. Therefore, the market whales can execute such plans. Whether they are actually doing so remains a subject of assumption.
Crypto is Unstoppable
Having identified the likely reasons that answer the question “Why is Bitcoin price falling?, Hoskinson goes ahead to express what he expects to happen afterwards. Hear him:
Remember everyone, after the FUD, news trading and manipulation clears out, we still have a global movement that’s going to change the world. We will see 10k btc again and welcome 100k. Crypto is unstoppable. Crypto is the future.
Iyke Aru is a seasoned author and educator in the blockchain and cryptocurrency industry. He has been in the business of crypto content writing for many years with thousands of his articles across several platforms on the internet. Iyke is based in Nigeria where he stands out as one of the most informed and credible figures in the cryptocurrency industry. Outside blockchain and crypto, you will most likely catch Iyke playing or discussing football with friends and family.