Why is Bitcoin crashing massively right now?

""The halving is coming"" but markets are anti-inductive. https://www.lesswrong.com/posts/h24JGbmweNpWZfBkM/markets-ar...

(I think. I can't actually say I fully understand this piece, but it seems to make a bit more sense with each reread.)

You're new to this :-)

Look all cryptos are extremely volatile because the real market liquidity is an order of magnitude less than most people think it is, and the way automated market makers work force all exchanges to keep their prices "in sync" to avoid arbitrage like we had in the early days when it was possible to buy for 50$ in one exchange and sell for 100$ in another..

On the plus side, atm BTC is up ~8% in the last year and about ~22% since the beginning of the month.

Source: me a blockchain dev, former CTO of a crypto exchange that raised 30M in an ICO.

Correct me if I'm wrong but there's many reasons:

- It's an unregulated market, so there's nothing preventing wealthy actors from buying up tonnes and artificially increasing the price, e.g: "pump n dump".

- It's inherently speculative and has no real use besides investing and unregulated money exchange.

- It's a global market, people from all over the world have access to the market with little overhead, making it volatile.

Everyone here is just making random guesses. The truth is that Bitcoin is an asset backed by nothing but speculation, so wild price swings with no legible cause are completely normal.

"...crash from $9.5k USD to $8.5k USD in the past 30 minutes..."

what's this? quality bait? BTC was up and down all the time, this is normal. Say OP, do you have bitcoins? Because it seems to me you're trying to stir something

Bitcoin recently pumped from ~$7k to near $10k in a few days. Of course, after a quick pump comes what?

It looks eerily similar to what happened to the stock ticker MVIS. 2 days before a major event/earnings call (though, the earnings call was pure speculation), an extremely large single transaction took place that elicited stop losses for those with limits placed, exacerbating the fall.

Redditors like to think this is a manipulation tactic to incite a plummet in price to buy in at a much cheaper price and ride a slow, gradual wave up before the actual event happens.

https://twitter.com/whale_alert/status/1259258437831188482?s...

I'm assuming you bought high?

Learn to read trading indicators. You'd see that it was massively over bought and bound for a bit of a correction.

Also, if you think this is bad... you haven't been in the shit yet/must be new to this market.

Somebody using the leverage exchanges (>100x margin exchanges) are liquidating the leveraged longs over the weekend after a several week long run up where people built large long positions. After a 10k close on Friday expect it to gap up to 10k Sunday night forming a reverse BART and making the players behind this move much wealthier.

https://www.teletrader.com/bitcoin-drops-15-trades-close-to-...

This website suggests it's due to bitcoin halving the block reward soon.

Only midlly related - for the past couple of years (since the crash of early 2018) following the crypto markets has been incredibly boring because of how highly correlated all the coins have been. Just have a look at coinmarketcap - the line charts are nearly identical.

What's interesting is that it got back to ~$10K so fast after the crash to ~$5K in mid March.

volatility always increases near halving events.