1 BTC < $33K. Total cap < $1T. Why?

[MrSpasybo]

BTC price falls below $33K. The lower resistance $35K has been broken.
Total crypto market cap falls below $1T.

I am quite surprised and confused for not understanding the reason.

Here are some of the reasons I think about:
+ New president, new policy, the growth of the stock market has attracted interest & capital from the crypto market;
+ Expensive investors take profits earned in the last period;
+ Necessary correction for the market to return to its true value;
+ Asian people sell crypto to buy product for Lunar New Year ^^

In your opinion, what is the reason for having a negative impact on the crypto market and causing the market to evaporate close to $100B?

And: what will happen next?

[gotbounty]

Maybe the is the chance of BTC to be down and the sideway. this is the starting of altcoin season. probably this is one of the conditions where people will now focus on altcoin. And if we are still holding BTC, don't panic because BTC is always very good and promising coin for HODL

[Astra]

The reasons can be very different, including those indicated by you. It takes a little time to understand what happened to the price of bitcoin. It is unlikely that the inauguration of the new US President Biden could have such a significant impact on the cryptocurrency. After all, it was a planned event and nothing significant happened at it. Perhaps Bitcoin needs some time to gather its strength. In any case, the cryptocurrency market will not stand still. Everything that is done is done for the best.

[pelana vreo]

Another possibility is,
- Investors withdraw part of their funds due to debt
- The decline in the price of real estate and other stocks led investors to divert some of their crypto funds.

From the current price decline, we can see the level of price correction that will be achieved, the decline in market capitalization will always occur because this is a normal situation when the world economy is still unstable.

[sidik7]

the reasons maybe quite diverse ,such as because many investors now are very enthusiastic about the technology implement to bitcoin then the proggress of bitcoin itself continues to increase from year to year , the supply of bitcoin also affects the value.

[Hometown]

Obviously it's a technical or maintenance problem of coinmarketcap team management. I think they should immediately correction . Bitcoin price dumped more than $10000 but how can total raising volumes be constant!!!

[tonymillions84]

i think the reason is simple, funds keeps leaving the crypto market. as funds are leaving the total marketcap keeps falling. when funds are back, market cap raises. it is simple mathematics. not too hard to understand. huge amount of money movement determines market cap. increase or decrease. Not just bitcoin price movement but also altcoin too.

[TomPluz]

As for me, this is quite expected, but eventually the market will be making a big rebound days after today. Of course, people will always think of the possible reasons for such a big dip and anybody can come up with at least one or two. Now, this is a big sign that seems the cryptocurrency industry is not so confident that the new Biden administration will be friendly enough into it, there can be some new policies that can affect cryptocurrency and reverse some gains we already have in the past. I am emphasizing though that I am hoping to be wrong on this area.

[Andruha1993]

This is not surprising, it's just a market correction! There is always a drop in prices after growth. So don't worry, because there will be growth soon and we will see bitcoin at a high price.

[Giangphuong8489]

We didn't find any negative information, so I think the reason is:
+ Whales & many investors sell coins to take profit;
+ The market has developed too quickly and has reached a price greater than its real value;
+ This could be a correction between price increases.

I like the idea of Asians selling crypto to buy Lunar New Year stuff

[dragononcrypto]

I think the crypto market reaching $1T could have been a reason for the pull-back potentially, that and this lining up with a $40K Bitcoin, which is exactly 2x from previous ATH. It doesn't surprise me that traders, as well as some investors, would take partial profits at this level due to anticipating resistance.

In hindsight, it makes sense we'd see a correction from these levels. Not only because it's natural for Bitcoin to see 25-35% corrections in bull markets, but also because only a few months ago Bitcoin was around $10K and has since gone up by 300% to $40K. There will always be profit taking!

[whyrqa]

I think the crypto market reaching $1T could have been a reason for the pull-back potentially, that and this lining up with a $40K Bitcoin, which is exactly 2x from previous ATH. It doesn't surprise me that traders, as well as some investors, would take partial profits at this level due to anticipating resistance.

In hindsight, it makes sense we'd see a correction from these levels. Not only because it's natural for Bitcoin to see 25-35% corrections in bull markets, but also because only a few months ago Bitcoin was around $10K and has since gone up by 300% to $40K. There will always be profit taking!

I believe that even today the cryptocurrency market does not show us anything new. When the next historical maximum is reached, in any case, corrections will take place, as it happened in previous years, where the exchange rate has filed more than 30% about 6 times over the entire period. Therefore, today everything is going on as usual and I hope cryptocurrency users will not panic.

[arnold dudicove]

You are right. The current price of bitcoin has decreased drastically when compared to the end of last year to early last year. Some of the reasons you put forward are also true, because they can indeed trigger all of this to happen. We hope that in the future prices will strengthen again ...

[Azaleea]

In some ways I agree with your statement. The decline has already occurred. Even a little deep. But I am optimistic that it will rise again in the next month

[jonathancool220]

Check out the Bitcoin chart in 2018.
Where at the time of December 2017 the Bitcoin price was already above the cloud and January 2018 was the peak of all Bitcoin prices.
Now, in December 2020 Bitcoin price is in the cloud and in 2021 January is the peak.

Unfortunately December 2018 is the lowest price for Bitcoin and I think December 2021 will also repeat itself as we talked about earlier.