What's Really Behind Bitcoin's 50% Collapse
The value of Bitcoin is dropping fast. It does not matter what Donald Trump does he cannot stop this market from going. The Bitcoin market is in trouble and it seems like nothing can save it now. Bitcoin is still. People are getting worried, about their money.
So much for political backing being the ultimate bullish signal.
just went below sixty three thousand dollars. To be honest the feeling in the Bitcoin world right now is really bad. We went from reaching one hundred and twenty seven thousand dollars back, in October to seeing our Bitcoin investments lose a lot of value over the past few months. That is a fifty percent loss if you bought Bitcoin at the highest price. Bitcoin is really. That is very painful. Bitcoin investors are not happy now.
What is really causing all this trouble?
The problem begins with big investors taking their money out. You know those Bitcoin funds in the United States that were buying up Bitcoin like crazy year? Now they are doing the opposite. We are talking about a lot of money leaving. Over three billion dollars in January. This is on top of seven billion dollars and two billion dollars that left in November and December.
Deutsche Bank talked about this recently. They are very clear about what is happening: regular investors are losing interest and a lot of people are feeling very negative about Bitcoin. The Bitcoin funds are not investing in Bitcoin like they used to. Bitcoin is not as popular, with investors as it was before.
CryptoQuant said what a lot of people already thought. Big investors are not buying much as they used to. This means the investors or what some people call the whales have stopped buying and are now selling their crypto. CryptoQuant is talking about CryptoQuant when they say the whales stopped buying CryptoQuant and started dumping CryptoQuant.
The thing is, people usually do not talk about this. Crypto operates on cycles of excitement. When people get really excited about Crypto more people buy and sell there is Crypto available to buy and sell and the price of Crypto goes up really fast.. When people stop getting excited about Crypto? You see what is happening with Crypto now. Not many people want to buy or sell Crypto, the price of Crypto can drop quickly and the Crypto market is bad, for people who try to buy Crypto when the price is falling.
Adam Morgan McCarthy from Kaiko really got it right. We are seeing the base of trading volume disappear. When there is volume there is less liquidity. This means that every time someone sells it has an impact. It is like a cycle. When prices go down people lose interest. When people lose interest the volume goes down.. When the volume goes down prices fall even more. Adam Morgan McCarthy from Kaiko is talking about trading volume. The trading volume is what makes the market move. Without trading volume the market does not work well. Adam Morgan McCarthy from Kaiko says that less volume means liquidity. This is a problem because it makes the market very sensitive. Every sell order can make a difference. Adam Morgan McCarthy, from Kaiko is right it is a situation.
Welcome to crypto winter territory.
Bitcoin is not the one that is having a tough time. Ether also went down by 19 percent in one week and it is now around $1,854. The whole market is being affected by the things. People are worried about what is going on in the world and that is making the traditional markets go crazy. The prices of gold and silver are going up and down a lot which is confusing people. The dollar is also getting stronger. That makes people less interested in things that are risky, like Ether and Bitcoin.
The price of Gold went up to $5,595 for a while then it went back down to $4,872. The price of Silver also went up it reached $122. Then it fell down to $77. This is crazy because Gold and Silver are things that people usually think are safe to invest in. When the price of Gold and Silver changes much it means that people are not feeling very confident about investing in anything. The price of Gold and Silver is over the place and that shows us that people are really nervous, about what is going on.
The main thing to remember is that what politicians say does not matter more than the basics of the market. When big institutions start to pull their money out people who invest start to lose faith and it becomes hard to buy and sell things. No matter what the president says it does not change the facts. The market needs something to happen to start doing better not just messages on Twitter, from the president.
Stay sharp out there. Winters don't last forever, but they can last longer than your patience.$ETH
#JPMorganSaysBTCOverGold #MarketCorrection
