Decline of BTC’s price: new reasons suggested
Senior investment executive made a suggestion that decline of BTC’s price was triggered by a chain of events. They are both geopolitical and financial. In his Twitter Gabor Gurbacs made a list of reasons why the BTC’s price “might” go down to $6,500. The BTC has recovered almost 11% and the price went slightly up. Still the Gabor Gurbacs’ suggestions may come in hand for the further analysis.
China’s Impact on decline of BTC’s price
China is partially responsible for decline of BTC’s price. That’s the fact the community has to face whether people want it or not. The price cracked down as a response China’s pressure on the crypto exchange platforms and BTC. So the investors, having seen the risk, decided to leave the market. They stopped investing for now and are about to buy back later. In another post Gabor Gurbacs wrote that investors are expecting to return later. So they will get the maximum profit on the lower rates later on.
Taxes, taxes, taxes…
Tax obligations impact – another important might-be reason for the decline of BTC’s price. The reason is in USA investors’ game as far they are expecting to drag the market as low as possible for getting small gains on the holdings. The situation was called “year-end tax-loss arbitrage” and at the moment it is not clear what amount of participation was involved to provoke the move as huge as it turned out to be.
Not that huge liquidity, huh?
According to the data provided by Screw Markets the trading platforms face BTC liquidity’s squeeze as well. It is believed to be a consequence of concerns over China’s policy. At the same time Gurbacs advises to avoid any huge orders as far the market can move significantly in any direction.