So it is the Holiday season and it was Xmas. How many people dived into their Bitcoin hoard to buy Xmas gifts and also paid for a nice holiday with their family?
We saw a huge increase in the price, early in the season and this might have triggered a situation where people rewarded themselves with some "Gifts" for the holiday season.
The direct impact of that would have been a higher influx of coins onto the exchanges and if that was not met with a higher demand for coins, then it would explain the drop in the price.
Did you splash out with some expensive gifts and extravagant holidays with your bitcoins, during the holiday season?
I highly doubt that this was the case. So many people would have to pull out for this to be the case. It's possible that it's the reason that the entire downfall started, but I don't think it's a major reason. If anything, it's mostly people who are nervous after they see BTC drop by a couple of hundred. Regardless, we're on the come up again, as we always have been after drops like these, and I don't think we'll be affected too much by this drop in the future.
That's true. It may have some effect however only a number of people must have done so, and therefore created only a small impact. There are other factors which have contributed to the price drop. Also, it was beneficial and healthy. The price was bound to go down anyways since it's been high for quite some time already; there was no surprise that it went down and it's possible that the holiday season was purely coincidental. In fact, I remember a number of people who predicted for the price to increase come Christmas season and once the year will end. Turns out that they were wrong.