What Caused the Bitcoin Price Plunge below $12,000?

  • Dollar and Gold prices fall to a 4 month low
  • Bitcoin climbs a $12,000 marks and keeps falling constantly
  • Arrest of Bithumb founder is being sad as trigger point for BTC fall

Bitcoin again becomes the talk of the town but this time for its crash. This rogue crash of the market started with the US dollar index falling to a four-month low. Naturally, with the fall of the dollar, old prices were meant to rise in the market. The gold prices peaked to $2,000 Mark, simultaneously it also had impacted bitcoin, following a drop in dollar, bitcoin surged past $12000. However, the dollar recovered and rebounded at the previous level following which gold price corrected back to $1,960.This rally of fluctuation was soon followed by Bitcoin which also came crashing down. 

Source: CoinMarketCap

Reasons behind Fall

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Dollar index fall was the trigger point for this which was followed by volatility and fluctuations of reaching a high of $12,000+ but continuously failing to maintain the price, what experts are claiming as the final nail in the coffin as the arrest of Bithumb’s founder for cases against fraud and illegal transfer of assets.

Source: CoinMarketCap

Seoul Metropolitan’s Raid on Bithumb

Major Chinese news agencies and authorities are stating the incident only as an investigation against Lee Jung-hoon, chairman and owner of the company. But believing the local authorities of the Seoul, South Korean Exchange’s owner Lee was investigated earlier but today police made the arrest under illegal transfer of his assets.

This arrest was the result of last week’s investigation where police raided another Korean Exchanged, namely Coinbit. This raid was under the claim that 99% of the trading volume of the company was falsely managed.

Source: CoinMarketCap

Bitcoin still Unstable

Dollar price may have regained from the fall but Bitcoin remained highly volatile and kept falling. It reached to a price of $11,160. Ananlyts from all over the market were hoing for the price to reach a spot between $11,400 to $11,600. Unfortunately,analyst from te world turned out to be wrong. And since september 02, 2020, BTC’s price has reached to $11,339 at the press time. Similar fall and even sudden rises can be expected more in the future as Korean crypto trading laws keep becoming stricter with time as expressed by Business Development Head of MakerDAO Asia, Doo Wan Nam. 

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Steve Anderrsonhttp://www.thecoinrepublic.com
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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