What’s causing Bitcoin to Drop?


Investors are a bit worried about the sudden decline in the price of Bitcoin. What’s the reason behind sudden drop of the bitcoin value?

in progress 0
Delta 3 months 1 Answer 66 views 0

Answer ( 1 )

  1. Bitcoin and cryptocurrencies in general have shown a high level of correlation with the U.S. stock market, possibly due to the overall drop in investor appetite for high-risk assets during COVID19 pandemic. The steep correction in the U.S. stock market together with a lack of buying demand as Bitcoin’s price fell to the low $5,000 levels ultimately led the price to decline to $3,600.

    In the aftermath of the 50% drop in the price of Bitcoin, top industry executives that oversee the sector’s largest investment firms expressed their belief in the asset class and confidence in the long-term trend of the market.

    Michael Sonnenshein, the managing director at Grayscale — which oversees the Grayscale Bitcoin Trust, a publicly tradable Bitcoin investment vehicle with around $2 billion in assets under management — said that he hasn’t doubted his faith in the cryptocurrency industry and the community amid this extreme volatility

Leave an answer


By asking your question, you agree to the terms of service and Privacy Policy.