Why Bitcoin (BTC) Lost 43 Billion Dollars in a Month?
Once the major dips arrived in mid-November, Bitcoin started to drop at an accelerated rate with the rest of the cryptocurrency market and it seems that every Bitcoin enthusiast and cryptocurrency investor is wondering what is going on with the crypto market.
Bitcoin has already been declared dead for more than several times, as it also dipped at the beginning of September.
It appears that the crypto community forgot that November dips were nothing harsher than the massive decline that took place on September 6th and pulled down the price of BTC, where Bitcoin lost 10 billion of its market capitalization of over 200 billion dollars in less than 24 hours.
The November dip thus might be only the continuation of dips that appear as early in April already, after the cryptocurrencies managed to set record value only several months before in January, including Bitcoin (BTC).
A bit over a month after BTC lost 10 billion dollars of its market cap, a new wave of massive dips arrived with mid-November where Bitcoin lost 43 billion dollars of its capitalization in the course of only several weeks.
December is still acting bearish on the cryptocurrencies, so BTC is once again trading below the initial low of 4,000$ per one unit.
Whatever happened to Bitcoin and why is the cryptocurrency market dropping?
Blockchain is Advancing, But the Crypto Market Appears to Be Crashing
While blockchain is advancing in the terms of integrations and adoption, as we can see major companies and giants from multiple industries and sectors adopting the blockchain technology, the cryptocurrency market is going in a downward trend.
Bitcoin alone lost 43 billion dollars on market capitalization, still declining in December as well as during the most of November, causing major losses to the cryptocurrency market as BTC capitalization takes over half of the total value of the crypto market.
While big names from finances like Warren Buffet claim that Bitcoin “has no real value,” which should supposedly be the main cause behind the dip, Buffet indicates that the value of Bitcoin solely depends on how much is the next investor ready to pay for it.
That being said, the value of BTC is said to be non-existent. However, since BTC represents a prototype of the first cryptocurrency that was the original digital asset to enable blockchain-powered transactions, Bitcoin is still considered to have a value.
However, since more cryptocurrencies arrived into the market, offering faster processing times and different products and services, all supported by official dev teams that BTC doesn’t have, it may be the case that BTC started to devaluate due to this case.
But how come the rest of the market is dipping as well.
The most logical explanation that many analysts are said to agree is the fact that the market is being brought down by a large scale because of a large buy and sell pressure that came after December 2017 and January 2018.
Another alternative explanation to the question on why Bitcoin is dropping might be that the crypto market is yet to be formed and reformed as the hype from the end of 2017 and the beginning of 2018 started to wear off months ago to bring more realistic prices to the market of cryptocurrencies.