bitcoin going to crash | BTCC Knowledge

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Is bitcoin in a crash?

When assets rise very quickly in price and surge to a record high, typically this makes a crash much more likely – or at least a correction, which is when the price falls back down to a more “normal” level. This appears to be the situation that bitcoin is in right now. It took the cryptocurrency: A decisive year for crypto investors was 2013.

Why did Bitcoin crash in 2021?

Bitcoin’s crash, from close to $65,000 in April 2021 to around $35,000 by mid-June, was in large part a response to China’s crackdown on bitcoin mining. Bitcoin fell 5.5% when the Chinese government clarified in September 2021 that cryptocurrencies are illegal. In the U.S., bitcoin responds to news from regulators and legislators.

What happens when you bet on bitcoin's price moving one way?

When large numbers of highly leveraged traders all bet on bitcoin’s price moving one way it creates an opportunity for other large investors (whales) to move bitcoin’s price in the other direction. Doing so triggers a cascade of liquidations, sending bitcoin’s price to crash and creating huge paper losses for leveraged long traders.

Is bitcoin dead?

But whichever way it goes from here in the short term, history suggests that it will not be down forever. The death of bitcoin has already been pronounced by the media more than 400 times, according to one site that tracks its obituaries, most recently in a piece in the Spectator titled ‘Crypto is dead’.