Multiple Bitcoin price falls on March 12 to $6,040 USD and another fall on March 13 to new lows of $4,563 totaled a 40% price decline in just 24 hours. Both falls were caused by massive and continuous Bitcoin sales.
Bitcoin users and traders shocked by that big fluctuations searching for reasons for that dramatic volatility.
Various reports claim that several factors affected the situation on the cryptocurrency market. According to Forbes, the one of the reasons for the Bitcoin price fall was caused by Opec’s failure to agree to a supply cut. As a result the oil price crashed to its historical lows starting a chain of financial problems on the market.
However, cryptocurrency was always supposed to be a safe haven that grows when oil, gold, and fiat face problems.
Another reason mentioned is the cryptocurrency selling by scam project called PlusToken. The massive sales of stolen Bitcoins and wallets liquidations probably caused various Bitcoin falls during this year.
The spread of the coronavirus COVID-19 influences all the countries. On Wednesday, the World Health Organization (WHO) declared a pandemic. Cryptocurrency market reacts on the situation with the spread of the COVID-19 just as any other field.
Together, this coclail draws Bitcoin and all altcoins in a very unstable position. However, the bigger problem is the panic that forces traders to sell their tokens.
The biggest coincidence is the time of the Bitcoin price fall. It’s just weeks till Bitcoin halving 2020. Bitcoin price has been always reacting to halving, starting with falls and then rises.
Some Bitcoin traders believe that what we see now is actually very similar to the situation on the market before the previous halvings. One of the Redditors has posted a chart, showing a similar pattern in the Bitcoin price charts of 2013, 2017, and 2020.
Indeed, the previous halving had positive influence on the Bitcoin price. We may see the same situation this time.