Bitcoin continues to decline and is going under the bearish trends more and more. The trend line has not shown even a slight recovery since the start of November. There may be some reasons behind this excessive dumping of the coin. But I am going to highlight some prominent causes of dumping.
BitMEX Volume is Going Down
Often, it is said that the leading bitcoin futures trading platform moves side by side with the current price situation of the Bitcoin. The daily traded volume on the site is going down day by day. It is reported on Nov 17 that traded volume went to its lowest position of the whole year.
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The dumping of the futures trading volume is not pointing towards any positive signal but it reflects lost of interest by traders and investors in trading digital gold.
People Retreat after it goes down
Bitcoin went below $7k which is the lowest position in November. The long term stay in the bearish trend affected its position in the market. When it was standing around $9,000, the analysts have strong hope that the stamina for a great rally is accumulating but when it went down, all hopes shattered.
Now, the value is waving at one of the lowest positions of the year and the volume on the major exchanges is decreasing. Capturing the overall scenario, investors are retreating by selling BTC which causes a great selling pressure in the market-resulting in value dumping.
Whales are Putting Selling Pressure for Halving
As we all know -besides the popular claim that Bitcoin is totally decentralized and one is capable of manipulating it but the scene is opposite as- there are few big whales who are having a significant effect on the bitcoin price value.
The whales are creating the selling pressure so that the price could be reached at a low position. As a result, they can stock the BTC assets for the halving event. As happened after every four years, the value always increased due to the reduction in rewards.
People Don’t Need It
It is very interesting to note down here that people are losing interest in Bitcoin because the new giants jump in the digital finance markets. For example, Facebook is going to launch its cryptocurrency for digital transactions.
The Chinese Central bank has issued its cryptocurrency for usage in the country. Similarly, other giant companies are stepping into the industry. This is shifting the interest away from Bitcoin and maybe the one cause for the BTC crash.