Why is the price of BTC dropping so much?

Recently it was the hack, but why has the price dropped since the boom a few months ago?

its was following the BTC and the rest of the market all coins dropped under the previous bottom and the few that are working arent directly supporting BTG topups

Bear market. I guess by the end of this year the market will recover

There was no hack, so I guess you mean the 51% attacks/double spends in the middle of May. (I say no “hack” because a 51% attack doesn’t exploit an error in the code or break security - a 51% attack is done by using great power in an abusive way.)

I see no sign of direct price impact from the attacks on the Exchanges, which happened between roughly May 16 and May 19. Here’s a chart of BTG and several other notable coins:

The chart is from April 28 to July 1, coins prices are in USD terms, and the chart is auto-scaled by TradingView. The coins, by color, are:

BTC (Red)
BTG (Gold)
ETH (Blue
LTC (Purple)
BCH (Green)
XMR (Grey)

As you can see, BTG price did not behave differently than the others during or after the May 16-19 period.

As you can see from the chart above, all prices have been dropping. It’s a @h4x3rotab says - we have been in a “bear market.”

I feel the Crypto Mania of 2017 led to a bubble (BTC at $20,000!) which was too much, too fast - it was fueled, in part, by people making bad decisions. A bubble is always likely to pop and deflate, which happened for Bitcoin between December 17 (almost $20,000) and December 22 (under $14,000), followed by an erratic deflation (bear market) for six months.

Many factors play into a bull or bear market - news about the big players in the market, crypto adoption by people, technology advances or failures, regulatory environment (countries banning or controlling the big players), reports of fraud, reports of gains and losses (there were lots of reports of losses after the bubble popped!), wider investment trends (what’s happening in non-crypto markets), overall sentiment about crypto…

Judging all these things together is difficult, but it’s easy to look at it in retrospect and say, “yes, it has been a bear market, and the whole crypto space has declined over the past six months.”

Personally (and I speak for myself, here), I’m somewhat optimistic that the bear market is over. I think prices have largely bottomed out for the broad market, and the “smart money” out there sees most cryptos as under-priced - value-priced - and will be accumulating over time, with extra buying on any dips. If that’s true, then the bear market is over.

I won’t try to predict when things will start to rise, again - it may begin next week, maybe next month, maybe we’re flat for several months before things start to broadly rise. Much depends on those factors I mentioned - plus many others, besides!

1 Like