Bitcoin hasn't been doing well lately. Saturday Monday Sunday's $ 9,000 level reached $ 9,200, although investors were somewhat relieved to see the bottom of $ 8,000 on Monday created an air of panic. Bitcoin's move saw a large number of sell-offs as investors were caught off guard, with too many funds leaving the market. So the price went down to $ 7,600.
Bitcoin is trying to rise again to over $ 8,000, according to the transaction, up from $ 7,934 at the time the article was being published.
Raoul Pal, a former Goldman Sachs European hedge fund sales executive and Bitcoin investor since 2013, expressed concern that bitcoin's decline could be due to hedge funds, and said::
It sounds like any hedge fund is cashing in on its long-term Bitcoin Investment. VAR won't budge. (VAR is a measure of risk in a portfolio and depends on volatility, so it has to reduce risk as the volume of all assets increases)
In addition, Pal stated that this decline in Bitcoin was an investment opportunity.
As well as Hedge funds, there are different reasons that triggered bitcoin's decline, according to crypto analyst Jacob Canfield:
• COVID-19 outbreak: in the past few weeks, both global markets and the cryptocurrency market have suffered a serious blow. While some say the collapse in the Bitcoin price is not related to sales in other markets, analysts have observed that there has been no volume in mainstream crypto markets since the outbreak began. That explains a strong loss of liquidity and the decline in the last two days.
• Miners are accumulating: Charlie Morris, founder of bytetree, a crypto analytics platform, recently testified that miners accumulating BTC historically “deliver negative returns and reflect a weaker market offering.”
• PlusToken: the fact that the PlusToken ponzi scheme wants to resell the bitcoins at its disposal may have driven down the price of Bitcoin, and indirectly the price of other cryptocurrencies. Because the mass sales in this way, the market is dominated by panic air and sales pressure, and as a result, sales are increasing.