Why Bitcoin is Down Today?

 

Bitcoin's value has already fallen in the last few months of 2022. In November 2021, Bitcoin was still trading at $68,000. However, the Bitcoin price crashed dramatically in the months that followed. With the exception of a few recoveries following crashes, Bitcoin price development has been generally negative since the beginning of the year.

What is Bitcoin?

Bitcoin is a type of cryptocurrency. It is a cryptographic-based decentralized digital money. As such, it can function without the requirement for a central authority such as a central bank or a corporation. It differs from government-issued or fiat currencies such as the US dollar or the euro, which are managed by the country's central bank. Because of its decentralized design, it may function on a peer-to-peer network, allowing users to transmit funds to one another without the necessity of middlemen.

Bitcoin's Statistics

On November 10, 2021, Bitcoin reached an all-time high of $69,044.77. (8 months).

On July 6, 2013, Bitcoin experienced an all-time low of $67.81. (almost 9 years).

According to CoinGecko, the current Bitcoin price is $19,115.04, with a 24-hour trading volume of $13,599,388,595. In the previous 24 hours, the price of Bitcoin has fallen by -0.7%. It has a total quantity of 21 million BTC coins and a circulating supply of 19 million BTC coins. If you want to purchase or sell Bitcoin, the most active exchanges right now are Coinbase and Binance.

Why Bitcoin is Down?

There are several causes for the downward trend in Bitcoin prices. In comparison to prior years, the elements that will affect the Bitcoin price in 2021 and 2022 are entirely new. The market has altered dramatically between 2017 and 2018 when the previous great bull run occurred. The following factors were crucial in the rise of Bitcoin's price:

• Crypto rules are limited.
• Correlation with a stock market that is overbought and adjusting
• Breach of security, hacking, and rug-pulling

Many more catastrophes occurred in the cryptocurrency sector, such as poor ICOs, clogged blockchains, gas cost issues, and so on. When the market starts to recover, another issue hits investors in the face. The preceding items are only the tip of the iceberg. They caused the crypto market to plummet by more than 60% since the beginning of 2022. Bitcoin is presently trading at about $20,000, having recovered from a low of $17,800.

Bitcoin's price has rebounded and surpassed $20,000 in the recent 1-2 days. This point may now become a fresh lower resistance to the Bitcoin price. This is critical for a healthy Bitcoin price growth in the next weeks.

Bitcoin has officially entered a bear market. The question will be whether this bear market will last several months, if not years, or whether we will witness fresh price changes in Bitcoin in comparison to the previous. A lot is still extremely unclear right now. Almost no one expected this to happen in November 2021.

Conclusion

Many investors experience panic and sorrow as a result of such a large drop. You should retain your cool. Because cryptocurrencies like Bitcoin, Ethereum, Cardano, and Solana are incredibly affordable right now. So seize the moment and purchase cryptocurrency.