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 withdraw some for the holidays and I think it is the cause too of the drop in price. I have seen some people too who gifted their family and friends with coins instead of the traditional gifts because they know that it would be valuable in the future. If ever someone would have given me coins too then I would be much grateful for it. Now that we are in the new year then money will be flowing in knowing that there is already an exposure of it late last year getting the attention of more investors. Altcoins are also getting higher percentage in the total market capitalization so rapid movements of bitcoin has lesser impact compared before.