The cryptocurrency market seems to have suffered an unexpected downturn in the last two days. Bitcoin (BTC),the leading cryptocurrency, fell back below $ 8,500, causing the sector overall to lose more than $ 7 billion in value in the last 24 hours.
So are there any specific reasons or reasons behind the decline?
January 25 is a date when China and billions of Chinese will celebrate their new year. Bitcoin and the leading cryptocurrencies have always been down on these dates in the years before. Considering that China is one of the heartlands of the Asian cryptocurrency market, it can be stated that it is normal for this situation to affect the market.
BitMEX Chief Executive Arthur Hayes had also expressed that the BTC downgrade could come with the new year.
As Timothy Peterson, one of the leading cryptocurrency analysts, points out, Bitcoin actually always fell in February. Although Bitcoin has fallen below $ 8,500, altcoins are known to have declined far more in February. BTC, the precursor to this downturn, may soon turn over its order to altcoins, causing the sector to crash.
According to a recent study released by Tuur Demester, Bitcoin has entered a period of accumulation, namely “accumulation.” Investors generally tend to buy BTC at low prices during this period and maintain those prices. This could be interpreted as the BTC is in a period of stalling ahead of the forthcoming rise in the months ahead.