VanEck gives us answers about the fall of Bitcoin
On this occasion we explain the position of the VanEck company on the possible reasons why Bitcoin experienced a price drop. A fact that marked last week was the sudden drop in Bitcoin prices, turning the steps of $ 8,000 and $ 7,000. Occasionally the following days fell down to $ 6,500. The people of VanEck have decided to try to answer the questions on the subject.
It was through a tweet from the director of digital assets of VanEck that this thread emerged. Therefore, using his personal Twitter, Gabor Gurbacs shared the official position of the financial advisory giant in which he works and directs. In addition, it is noted that he is talking about four possible causes of the fall of Bitcoin, let’s see: The following indicators may have contributed to the latest Bitcoin price decline:
The repression of China / PBOC scared investors to re-enter at lower prices.
Arbitration of fiscal losses at the end of the year 2019.
Many recent product developments and mergers and acquisitions are financed with cryptography.
Generally less liquidity
In addition, he explained his point of view at each point:
China is scary financial
This issue is explained in another post in greater depth, stating the following: “I think investors are worried about the repression news from China and, therefore, some guess its re-entry point and lower prices.” Stressing that Bitcoin investors, from their perspective, are afraid of the actions of the Chinese government regarding cryptocurrencies. Posing that the regulations of legislators could cause problems in the internal fluency of the country.
Gurbacs argues that people are interested in reducing the amount of taxes they will have to pay at the end of the year. This means that in countries like the United States, which now have a tax system for crypto, they are interested in a lower price so that they pay less in the end. Therefore, these people will do their best to make the price of Bitcoin contract. This theory could be associated with the atypical movements of whales in recent months, which want the end of 2019 not to be paying high taxes.
In addition, it alleges that in recent months there has been a change in the trend of crypto projects. Continuing, Gurbacs argues that the projects now have greater financing with Bitcoin. However, these transactions can cause volatility in Bitcoin prices, being side effects due to the large amounts that move.
According to Gurbacs, who cited data from Skew Markets, liquidity in Bitcoin trading platforms faces a significant restriction. “The offer and the offer extend more widely in the last 3 months.
Be careful out there. The market can break quickly in any direction. Ease in positions. Avoid large / market orders, ”Gurbacs advised.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.