Many people are well aware of the fall in Bitcoin prices that have tripled since its peak in history since December last year. When the price hit $ 20,000 before falling to $ 6,000 later. The next question is. What are the causes of these events? Most Bitcoin investors are trying to find answers, but they have not come to a clear conclusion. Chainalysis has revealed the factors that can explain what is happening.
Falling to find the abyss not found.
Blockchain's research group, Information Scientist Chainalysis, has issued a statement saying that they recently joined Mt Gox to investigate the lost Bitcoin. Their research, titled "The Great Bitcoin Price Dip : Its Causes and a Way Forward "has revealed some interesting information without being involved in technical analysis.
Based on Chainalysis, the sale of Bitcoin is due. "News about the way lawmakers are involved in driving the trading volume. And the high level of confidence in the market. And the lack of basic factors resulted in a flock of coin buying. cryptocurrency On the relevant trading web. "The report also compares the current 'mama' to a flock of animals that run alongside each other emotionally. It will affect the entire flock.
"In the stock market, the CORRECTION of the price is usually around 10%, and the bear market. The price will fall by about 30%, but during the period of December 17 and February 6, BITCOIN's price has fallen by more than 70%. "
conclusion
The Commissioner of Chainalysis has concluded that events involving the legislator and investor sentiment are market driven. This may not be surprising for many people. The report also revealed interesting information about the research. For example, a large volume of trading on the Web during December and January. If compared to the year 2017, that means that if something happens to the Web only one web. It may also affect the other sites as well, if the major players have the "panic" to sell, such as assistant Mt. Gox.
When Bitcoin peaked its peak in December, many Webmasters faced unprecedented liquidity. Investors come to deposit more than to withdraw. "As a consequence, after supply is more demanding, so prices can not stay the same." Finally, it is concluded that altcoin prices are associated with Bitcoin prices, although in the future there will be new coins. Happened to many. But one thing that does not change is that what happens with Bitcoin will happen with every coin remaining.