Despite how good 2019 was for Bitcoin after the catastrophic 2018, Bitcoin price has not been doing so great as the decade comes to an end. This Monday, December 16th, the price of the first crypto coin once again began a slow decline. After the price rose above the 7,000 USD mark and stayed there for some time, the BTC price volatility reached the lowest point it was ever been in months and, yesterday, the price plummeted from 7,100 USD to a little over 6,800 USD in an extremely short period surprising a large number of Bitcoin investors.
This was a shock to many traders because most of them expected rising prices, which was apparent when on crypto exchange, BitMEX, long position liquidations reached over 40 million USD. Yet, what exactly caused Bitcoin price to shift so dramatically?
Currently, we don’t know what it took for the price to drop by 300 USD in such a short period of time. Yet, there are still a number of theories that sound accurate when considering the current market movements.
Chainalysis, a large company that focuses on blockchain, recently launched a report, in which a recent Ponzi scheme concerning cryptocurrencies was discussed. It was a crypto wallet in China, that still has over 850 million USD worth of Ether only. Because of this incident, there might be a fear in investors, which can explain the price shift.
On the other hand, in the crypto sphere volumes of crypto assets have been drastically increasing recently. This can mean that liquidity is decreasing due to Holidays, which could cause a price drop.
According to a number of large crypto investors, the downward movement of BTC price might be prominent during the upcoming few weeks. Yet, the halving is still approaching, which means that the Bitcoin price won’t stay like this for very long.
Interest in Bitcoin is increasing rapidly as the next halving is coming. In order to gain more information on Bitcoin and the price of this asset, take a look at Bitcoin Price updates as well as Bitcoin (BTC) Price Predictions.
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