Bitcoin price plummeted! This is what comes next in 2021

The price of Bitcoin

Since I started writing articles about Bitcoin for CityAM, the price of Bitcoin has risen more than 100% exactly as expected. However, The viral tech blog over the past 72 hours, the price of Bitcoin has fallen 23%. There are a few reasons for this and I will detail them in this article. I'll also detail what I hope the net result of all this recent news will be and let you know what I think is coming next for bitcoin and cryptocurrencies.

So to begin with, we have a 23% drop in 72 hours. On the surface, nothing good at all! In normal markets, The viral tech blog is attributed to a sudden loss of confidence, but in cryptocurrencies, things are a bit different. There are people who bought bitcoins for $ 3 and still have it; there are people who have huge mining farms that have to sell large amounts to finance operations. A combination of these 2 things is what makes Bitcoin incredibly volatile.

F2 Pool runs out

In the case of why Bitcoin fell 23%, this can be attributed to two main reasons. The F2Pool Bitcoin mining pool sent 3633 Bitcoin in a single transaction from its bitcoin mining wallet and directly to exchanges. They then proceeded to ditch all of this bitcoin in a very short period of time. It is unknown if F2pool was also shorting Bitcoin to capitalize on the price drop. As the price of Bitcoin fell, The viral tech blog there are so many new people on the market and new money easily panics, The viral tech blog so they start selling at a loss and you end up with large amounts of Bitcoin flooding the exchanges. This then snowballs into a catastrophic market move triggered by a single Bitcoin miner.

The theory

However, the story of F2Pool's dumping might not be one of the unsophisticated investors selling bitcoins to pay their bills. I think it is more likely that F2Pool has been ditching Bitcoin to prevent the Bitcoin price from turning euphoric and ending the bull run. Whenever Bitcoin has turned euphoric on the NUPL (Net Unrealized Profit & Loss) indicator, The viral tech blog a bear market has followed soon after, The viral tech blog so this is something to consider. The recent drop in the price of Bitcoin may actually be intended to delay the market euphoria and extend the bull run.

Tether and the New York Attorney General

The last thing worth mentioning today would be the news from the New York Attorney General (NYAG). The NYAG has suspended any further proceedings on Tether and forced Tether to pay a fine of $ 18.5 million while he banned them in New York. Tether's reputation is something that has been questioned many times and once again under scrutiny they passed and were not found guilty of anything. This is surprising news for Bitcoin because it means that every Tether in circulation at the moment can be considered equal to the dollar and thus solidifies the price of Bitcoin, The viral tech blog means there will be no rush to exit all cryptocurrencies if Tether collapses.

I think a combination of all these factors is happening and I think the next move for Bitcoin will be a small period of consolidation followed by Micheal Saylor that will trigger the next round of institutional investment in Bitcoin. I expect Bitcoin to hit $ 100,000 in 2021, The viral tech blog I don't expect to get there in a straight line, The viral tech blog but I hope it gets there and all the things that are happening right now seem to be lining up to create the perfect storm.