Why Bitcoin has Fallen in Price by $ 2600 in a few hours?

Kataryna Habeliia November 26, 2020

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Why Bitcoin has fallen in price by $ 2600 in a few hours? Two reasons.

The BTC price could not set a new maximum and rapidly dropped below $ 17 thousand. There is a risk that the cryptocurrency will fall in price by another 30%

Over the past day, the bitcoin rate fell 15%, to the current $ 16.4 thousand. The daily trading volume decreased slightly — to $ 51 billion. The share of BTC increased to 63.2%.

The First Reason

There may be two reasons for the rapid decline in the price of bitcoin. One of them was named by the head of the CryptoQuant analytical service, Ki Young Joo. The influx of coins to exchanges has skyrocketed over the past few hours, he said on his Twitter account. At the same time, BTC reserves are transferred by large holders, Joo stressed.

However, the market is still dominated by buyers, as evidenced by an analysis of the Bitcoin network indicators, he added. Therefore, Joo is confident that the rate of the first cryptocurrency will update its historic maximum of $ 20,000 in the next few days.

The Second Reason

Another reason for the decline in the crypto market could be a message from the head of one of the largest exchanges Coinbase Brian Armstrong. In a Twitter account, he said that he had heard rumors about a possible increase in the regulation of the cryptocurrency market by the US government.

Armstrong said the government has received a proposal to tighten control over personal OTC wallets, such as browser extensions or on-device apps. Armstrong suggests that Coinbase and other platforms will be required to identify the owners of such wallets before allowing funds to be withdrawn to them if such regulation is adopted.

Such controls will kill the growing use of cryptocurrencies and force US users to use foreign, unregulated crypto companies, Armstrong said. Bitcoin price began to decline within two hours after this message.

3 reasons why Bitcoin could drop to $ 12,000

Brian Kelly, CEO of BKCM LLC, warned about the risk of a decline in the price of BTC yesterday. According to his forecasts, the coin rate may fall to $ 12 thousand. There are three reasons for this:

  • a sudden rise in the price of altcoins;
  • a significant number of open long positions;
  • a significant influx of new users into the industry.

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