Why bitcoin prices tumbling down?
Since 2014 June exceeded $550 per bitcoin, bitcoin prices have been in decline. Two days ago we have another author Venzen Khaosan published an article on the price of bitcoin research, explained the reason of falling prices. He pointed out that in all the reasons, which leads to lower prices, the biggest event is the Ethereum bitcoin sales.
The technology of bitcoin transactions
Venzen explains why he thought so in the article:
When I write this article, Bitstamp trading platform price has stagnated at around $575. Although the chart analysis shows that is the lowest point at present, however, the decline seems inevitable.
As of now, has dropped to $525, more people still further discuss how to make the price rise to $556.
It is generally used in daily transactions, not only borrow or buy directly to trade, according to the sale of various analysis research, finally lead to price fluctuations. If the price fell to a so-called “point”, there will be more people fear the price to fall more sharply and start selling. By not only is also because people panic caused, then there is a “stop loss mechanism” to remind them that it is time to sell.
Large businesses and bitcoin payment processor
Most like DELL, Expedia, Overstock and other businesses to accept bitcoin payments received after bitcoin will immediately turn it into dollars, if the purchase ability is lower than the sales ability, the pressure will be under pressure to buy.
Bitstamp change the bank
This will lead to some uncertain factors, bitcoin trading platform will not be popular or is the result of close supervision.
Every day there are nearly 5000 bitcoins were dug, it will lead to more than $2 million a day selling pressure (if all the miners ignore consumption and sell bitcoin.).
Bitcoin trend is still uncertain
Although most news July bitcoin report is still optimistic, bitcoin prices are fairly stable, only the adverse impact of the news is “strong” NYDFS launched BitLicense, which is a protocol for constraint bitcoin and bitcoin related company. But this negative news has attracted more users and business (except for New York will have no other place)? Bitcoin foundation, people are so afraid of regulation? Bitcoin holders or too persistent?