Bitcoin hasn't been doing well in recent days. Although the $ 9,200 level reached on Saturday eased the investors a little, seeing below $ 9,000 on Sunday and $ 8,000 on Monday created a panic atmosphere. As this move of Bitcoin was caught off guard, many sales were seen and there was a lot of funds leaving the market. So the price fell to $ 7,600.
As the article is being prepared for publication, Bitcoin is trying to go above $ 8,000 again, according to the transaction at the level of 7.934.
So why did Bitcoin drop?
Raoul Pal, former Goldman Sachs European hedge fund sales manager and Bitcoin investor since 2013, said that the fall of Bitcoin could be due to hedge funds and said:
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It sounds like a long-term Bitcoin investment of any hedge fund is turned into cash. VAR does not compromise. (VAR is a measure of risk in a portfolio and depends on volatility, so all assets must reduce risk as the volume increases)
In addition, Pal stated that this drop in Bitcoin is an investment opportunity.
Other Reasons
In addition to hedge funds, there are different reasons triggering the fall of Bitcoin, according to crypto analyst Jacob Canfield:
- COVID-19 Outbreak: Both global markets and the crypto market have been hit seriously in the past few weeks. While some say that the collapse of the Bitcoin price is not related to sales in other markets, analysts have observed that there has been no volume in mainstream crypto markets since the outbreak began. This explains that there is a strong loss of liquidity and the decline in the past two days.
- Miners Accumulate: Charlie Morris, the founder of ByteTree, a crypto analytics platform, recently stated that miners who accumulate BTC have historically "made negative returns and reflect a weaker market offer."
- PlusToken: The PlusToken ponzi scheme's desire to re-sell Bitcoins may have lowered the price of Bitcoin and indirectly other cryptocurrencies. Because panic air and selling pressure prevails in the market in this way and sales increase.
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