Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Coinpedia Fintech News on May 12, 2023, 02:11:45 PM
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Bitcoin's recent price decline can be attributed to various factors. After a short surge above $28,000 on May 10th due to a drop in CPI, the bears quickly took control. One reason for the decline may be fake news about the US government selling 9,800 BTC, leading to panic and a flash crash.
The exit of major market makers Jump and Jane Street from the US crypto market due to regulatory uncertainty was another shock to the market. These complex factors have contributed to the recent decline in Bitcoin's price.
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Regarding the specific reason you mentioned, I won't actually say It is the only cause of the sudden bear market. Although there are some elements of truth to them. On May 10th, Bitcoin did briefly surge above $28,000 before experiencing a sharp decline. The exact cause of this decline is unclear, but there was speculation at the time that it may have been due to news of the US government potentially selling a large amount of BTC. However, this news was later debunked as fake.
It is also true that Jump and Jane Street, two major market makers, announced their exit from the US crypto market due to regulatory uncertainty. This news likely had an impact on the market, as these firms play a significant role in providing liquidity to cryptocurrency exchanges.