- The fluctuating patterns of Bitcoin is at its peak in the recent times since 2014.
- Several experts are working on the causes to understand the reason behind such a wide array of fluctuations.
- They have deducted several factors that have caused the same.
The conclusive fact that can be determined from the expert opinion claims that the large players of the crypto-market, alias the whales are the reason behind such an incident. According to researchers, it is they who are behind the collapse of BTC to an annual minimum. The activities which led to the collapse includes continuous and aggressive sales.
For example, the recent sales on the BitMex Exchange platform have contributed a significant level of aggressive selling of crypto-currencies which has led to the present episode of a drop-down below $4000.
On the other hand, there was a sudden growth in investor activity, which has positively impacted the crypto market to strengthen the same over the past few months.
The volatility index, a market tool utilized to analyze the fluctuation range, suggested that BTC has exceeded a fluctuation range of 10% in the recent times, a phenomenon which was earlier observed during the period of 2014. The event that took place in 2014 was the resultant of the underdeveloped market during those times.
Other causes of the fluctuation
It is also to be noted that, it was not just whales who has triggered the event. Medium and small BTC holders have also had contributions to such volatilities. The economic environment impacted by the COVID-19 outbreak has forced such players to sell their crypto-assets to increase their liquid assets. Because these players were in need of cash to face the new economic atmosphere.
On the other side of the transaction, the supporter chain started to gain a phase with an increase in the accumulation tendency. Thus these parts of the crypto market started to crypto-assets at discounts, which consequentially caused a heavy expansion in fluctuations. According to recent reports, the BTC rate on the Bitstamp Exchange rose to $6300. Bitcoin’s market capitalization now exceeds $116.098 Billion.
Once, it is to be underlined that such a collapse will be healed in the coming years, where it is expected that the industry reaches the all-time high levels to surpass its previous levels of record, a piece of information assured by the crypto experts and researchers.