On 7th of March, Bitcoin price was around 9,000$ but in only 1 week, Bitcoin dumped about -60% to 3,700s after touching 9,000s. Today, it’s about 5,200$ per Bitcoin but we saw 3,700s on past week. After that everyone created a theory which explains the dump according to themselves. Some said ‘’the OLD NEWBIE’’ may be the reason, others said only ‘’panic sells’’ caused by traders and some others said that ‘’coronavirus – COVID19’’ is the main reason for Bitcoin dump past week. All these theories are correct in parts actually but not totally.
The new coronavirus type-COVID19 maybe the main reason of the total sells all around the world in all types of investing materials like gold, bonds, stock market etc… It seems that the declaration of ‘’COVID19’’ as a pandemy by WHO made most of traders to sell anything they have. At first most of the countries didn’t introduce this virus correctly in my opinion so we’re in harder situation about virus. Because they ignored the virus, it became worse than expected. So the people want to reach ‘’real’’ money in their hand and started to sell everything they have even not looking the price at that moment. This panic leads many ‘’REDS’’ on everywhere.
Even though we can’t explain total reason with new coronavirus, it’s not possible to see this dump with only panic sells or bot activity on exchanges. We’re always facing with them on any exchange but none of them caused total depletion like that. So asserting the panic sells as ‘’main reason’’ is not correct for me.
These two are good examples for dumping the shit-coins, which they have 10,000$ or less total market cap. It should be something different that explains the dump with happened in more than 150 billion dollars total market cap. According to this opinion, some users on bitcointalk suggested the ‘’OLD NEWBIE’’ is the reason behind Bitcoin fall. But who is this guy and which of his/her activity causes the DUMP?
‘’whoamisoon’’ is the nickname on bitcointalk for the guy I referred. He created this account on 10th of March and made a post named as ‘’Newbie returning after long hiatus’’. He/she talks about 1000 mined Bitcoins when it’s available with a simple computer’s GPU and asks for how to send them into an exchange for selling. After some guides, he disappeared again and all crypto community started to discuss about this ‘’OLD NEWBIE’’. According to other bitcointalk users and the news from Cointelegraph, the 1000 Bitcoin move from different wallets into Coinbase made by him/her. And all these Bitcoins sold at 7,500-8,000s at that moment. The movement of 10-year old Bitcoins and selling all of them may triggered other users to sell their Bitcoins. And with the positive feedback of these sales Bitcoin dumped to 3,700s in 48 hours.
In my opinion, this theory makes me believe itself more dominantly.
And the last theory about the price fall is 2 different attacks to BitMEX on 13th of March. While the price getting lower and lower on 13th of March, BitMEX went down for some minutes. The team has announced that those are because of DDoS attacks on BitMEX on this article. After a while, Bitcoin stopped falling and began to increase again when BitMEX is still down. So some of users thought that Bitcoin price dumped because of the attacks on BitMEX. They claim that it’s not right but this is also one of the possible reasons to explain the Bitcoin DUMP.
Anyways, we’re facing to hard situations and it’s too hard to calm down and continue trading with patience. Nearly all of us lost AT LEAST half of crypto investment past week. After that time HODLING seems the best option until next halving.
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