So, as many of you are painfully aware, bitcoin crashed around 30% over a couple of days, reportedly due to regulatory pressures in Asia, and a potential ban in China due to energy wastage and tax evasion risks etc. Reports suggest that China contributes as much as 70% of the worldwide hashing power, and yet we only saw a 30% drop.
Source:
Report: PBoC Quashes Bitcoin Mining Ban Rumor in ChinaFurthermore, we saw 30%+ drops in other cryptos, even unminable, non-decentralized ones. So, conspiracy theorists, why do you think bitcoin
really suffers these sporadic crashes, could it be large-scale market manipulation? Or is it simply FUD leading to a wide-spread panic selling?
First and foremost, we should be mindful that price changes would definitely occur in the investment of cryptocurrencies, and hence a normal phenomena. However; the following factors play major role in the crash
a. Fear: many people are selling Bitcoin at the same and hence causing supply to exceed demand
b. Influx of altcoins in the system are reducing the demand for Bitcoins and hence causing the price to fall