Official News 20.03.2018 Why the price of Bitcoin decreased?

Discussion in 'MMM Global - English' started by MMM Global Support Team, Mar 25, 2018.

  1. MMM Global Support Team

    MMM Global Support Team Administrator

    The participation in MMM is possible in two ways - with fiat money (traditional) and cryptocurrencies. We recommend the second option as it is faster, more reliable and more profitable.

    Since mid-December till the beginning of February, the cryptocurrencies market experienced strong decay but in such situations the investors shouldn’t worry. It’s not so bad as it seems.

    Correction was quite expected

    Obviously, investors who purchased Bitcoin at the end of the last week when the price remained at its highs felt worry, and it’s logical. However, experienced participants of the cryptocurrencies market declared that such growth wouldn’t last for a long time, the correction would occur and the price would fall.

    The decrease of Bitcoin price lasted for several weeks with short breaks. In the mid-December one Bitcoin cost about $20 000 per coin. Already in February, the price decreased to $6 000. So, what happened?

    Versions of the fall

    The analysts offer different versions. Some of them state that the main reason are manipulations of the secret magnets, owners of the large number of Bitcoins. They could have increased the Bitcoin rate artificially at the end of the previous year in order to drop it down at the beginning of 2018, buy coins of the investors who started to sell Bitcoins due to the active decrease.

    Other analysts say that the price of Bitcoin is manipulated by the traders of the US stock exchanges as at the end of the previous year Bitcoin was added to the two “old school” stock exchanges that trade futures. Traders don’t buy Bitcoins but cut a wide swath around its price. As a consequence, the price grows, investors spend their money, traders get the revenues and then drop the price in order to purchase more coins for another manipulation.

    There are people who believe that Bitcoin dynamics isn’t related to the financial manipulations but to the tightening politics of the authorities. Many governments don’t perceive cryptocurrencies seriously. They allow to trade coins but investigate whether Bitcoins are used to finance criminal goals. If yes, the authorities promise to forbid cryptocurrencies at all and apply even stronger measures than it was in China last year. Let’s remind that the Chinese authorities forbade to trade Bitcoins at the local stock exchanges.

    In Europe, it was already announced that all Bitcoin users would be obliged to register. It means there will be taxes and control over the received/sent cryptocoins. Moreover, even in the World Economic Forum held in Davos, there were critics of Bitcoin. Scared users started to sell their Bitcoins in panics. Negative news background always leads to the decrease. Probably, it was caused by the authorities and banks intentionally as the previous year proved that Bitcoin is a really relevant tool that can affect the activities of the financial institutions.

    Patience and caution

    There are many other versions and hypothesis. Their diversity shows that nobody knows what exactly has influence on the price of Bitcoin. At the same time, we can’t explain with the 100% certainty why Bitcoin price increased so significantly at the end of the last year. The main problem of the cryptocurrencies market is that it’s too young and understudied.

    Experienced cryptocurrency investors keep calm. No matter what people say, six months ago Bitcoin cost $4 000, and eight months ago - $2 000. So, it’s necessary to keep patient and believe in the best.

    This is what we think. We are sure that Bitcoin will overcome any obstacles and will continue to grow. It already proved its steadiness many times. And we witnessed those historical moments. Therefore, participate in MMM with cryptocurrencies, get high percents and be patient!
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