3 reasons for the recent fall in the price of Bitcoin to the level of $ 10,000
The price of Bitcoin fell 10 percent to $ 10,300 yesterday (Thursday) and even reached $ 9,900 in some exchanges. 
http://s14.picofile.com/file/8407656968/btc_price.jpg (Bitcoin price fell yesterday)
With this sudden decline, bitcoin price growth was overshadowed in 2020, but the digital currency is still experiencing an increase of about 50% compared to January 1. Most analysts cite the following three reasons for responding to the sharp decline in bitcoin:
1. Bitcoin correlation with traditional markets
The S&P 500, which tracks the performance of the top 500 stocks in the US market, fell sharply yesterday after breaking the record. Unemployment in the United States reportedly fell to 881,000 in the last week of August, the lowest level since the start of the corona epidemic this year. Of course, during the recession of 2009, the highest unemployment rate in a week was 665,000. Leading economist: While the number of corona sufferers declined in August, the labor market still has many problems and we are not seeing much improvement.
John Todaro, a well-known researcher in the field of digital currencies, said:
There can be commonalities between stock market vendors and digital currency market vendors. Shares of tech companies fell the most today, including the popular shares of small investors such as Tesla, Facebook, Amazon, Apple, Netflix and Google. It is not yet clear whether the decline will continue or whether it is only a short-term correction. If the downturn continues, it could put more pressure on digital currencies.
2. Reduce Defi noise
Traders' enthusiasm for DeFi projects, or decentralized finance, is waning. Most of these projects operate on the ETH Blockchain. The price of ETH, the digital currency of the ETH network, fell by 11% yesterday and by about 8% the day before. The sharp drop came as ETH rose about 54% in July and 25% in August amid significant capital inflows. Traders' interest in devoting their money to the field of defense (so-called farming) to make a profit on the Compound, Yearn.Finance and SushiSwap projects led to a boom in the digital currency market, especially ETH. The value locked in Difai more than doubled to $ 9.5 billion in August, but has fallen to $ 9.1 billion in recent days.
Denis Vinokourov, a financial market researcher, said:
This explosive growth pushed decentralized exchanges and other defy products to levels that affected the emotions of all competing centralized exchanges. The recent crash was the result of a combination of these sentiments and a sharp rise in ETH fees. Also, with the arrival of tokens such as PIZZA and HOTDOG, whose prices dropped from $ 6,000 to $ 1 in a matter of hours, we saw a decline in the number of transactions related to Uniswap tokens. This is probably because similar assets (Bitcoin, ETH and others) have been used extensively to create collateral trading opportunities. Similarly, SushiSwap, another Defy token that impressed investors, had a similar idea to Uniswap. Decentralized exchanges and defa trading are no longer entertainment activities, and a large number of companies in the field of centralized exchanges are looking to invest in dominating the decentralized exchange market. There is no such thing as a Great Wall of China separating markets, and tendencies will flow from one market to another.
http://s14.picofile.com/file/8407657468/Screen_Shot_2020_09_03_at_11_05_54_AM.png
3- The miners sold their bitcoins
Bitcoin miners, and possibly traders, decided yesterday to reduce their risk by selling some bitcoins and save the rewards they received for maintaining the security of the bitcoin network. Prior to the recent crash, it had reported that large numbers of bitcoins had been transferred to exchange wallets, Bitcoin blockchain data. The transfer of bitcoins to exchanges is one of the signs of the possibility of increasing sales pressure. According to CryptoQuant Analytics, bitcoin transfers from mining pools have increased in recent days, and exchanges could be one of the destinations for these bitcoins to sell.
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Ki Young Yu, said:
Extractors are good traders. I think they wanted to take the opportunity to sell, not to go out altogether. I think there will be a war between the miners, between those who want to increase the price of bitcoin and those who do not. Some Chinese miners are aware of the profitability of mining and may not want new competitors to join the industry due to the rising market.
The image below is related to CryptoQuant
http://s14.picofile.com/file/8407657684/Screen_Shot_2020_09_03_at_10_57_18_AM_1024x410.png
http://s14.picofile.com/file/8407656968/btc_price.jpg (Bitcoin price fell yesterday)
With this sudden decline, bitcoin price growth was overshadowed in 2020, but the digital currency is still experiencing an increase of about 50% compared to January 1. Most analysts cite the following three reasons for responding to the sharp decline in bitcoin:
1. Bitcoin correlation with traditional markets
The S&P 500, which tracks the performance of the top 500 stocks in the US market, fell sharply yesterday after breaking the record. Unemployment in the United States reportedly fell to 881,000 in the last week of August, the lowest level since the start of the corona epidemic this year. Of course, during the recession of 2009, the highest unemployment rate in a week was 665,000. Leading economist: While the number of corona sufferers declined in August, the labor market still has many problems and we are not seeing much improvement.
John Todaro, a well-known researcher in the field of digital currencies, said:
There can be commonalities between stock market vendors and digital currency market vendors. Shares of tech companies fell the most today, including the popular shares of small investors such as Tesla, Facebook, Amazon, Apple, Netflix and Google. It is not yet clear whether the decline will continue or whether it is only a short-term correction. If the downturn continues, it could put more pressure on digital currencies.
2. Reduce Defi noise
Traders' enthusiasm for DeFi projects, or decentralized finance, is waning. Most of these projects operate on the ETH Blockchain. The price of ETH, the digital currency of the ETH network, fell by 11% yesterday and by about 8% the day before. The sharp drop came as ETH rose about 54% in July and 25% in August amid significant capital inflows. Traders' interest in devoting their money to the field of defense (so-called farming) to make a profit on the Compound, Yearn.Finance and SushiSwap projects led to a boom in the digital currency market, especially ETH. The value locked in Difai more than doubled to $ 9.5 billion in August, but has fallen to $ 9.1 billion in recent days.
Denis Vinokourov, a financial market researcher, said:
This explosive growth pushed decentralized exchanges and other defy products to levels that affected the emotions of all competing centralized exchanges. The recent crash was the result of a combination of these sentiments and a sharp rise in ETH fees. Also, with the arrival of tokens such as PIZZA and HOTDOG, whose prices dropped from $ 6,000 to $ 1 in a matter of hours, we saw a decline in the number of transactions related to Uniswap tokens. This is probably because similar assets (Bitcoin, ETH and others) have been used extensively to create collateral trading opportunities. Similarly, SushiSwap, another Defy token that impressed investors, had a similar idea to Uniswap. Decentralized exchanges and defa trading are no longer entertainment activities, and a large number of companies in the field of centralized exchanges are looking to invest in dominating the decentralized exchange market. There is no such thing as a Great Wall of China separating markets, and tendencies will flow from one market to another.
http://s14.picofile.com/file/8407657468/Screen_Shot_2020_09_03_at_11_05_54_AM.png
3- The miners sold their bitcoins
Bitcoin miners, and possibly traders, decided yesterday to reduce their risk by selling some bitcoins and save the rewards they received for maintaining the security of the bitcoin network. Prior to the recent crash, it had reported that large numbers of bitcoins had been transferred to exchange wallets, Bitcoin blockchain data. The transfer of bitcoins to exchanges is one of the signs of the possibility of increasing sales pressure. According to CryptoQuant Analytics, bitcoin transfers from mining pools have increased in recent days, and exchanges could be one of the destinations for these bitcoins to sell.
[/color]
Ki Young Yu, said:
Extractors are good traders. I think they wanted to take the opportunity to sell, not to go out altogether. I think there will be a war between the miners, between those who want to increase the price of bitcoin and those who do not. Some Chinese miners are aware of the profitability of mining and may not want new competitors to join the industry due to the rising market.
The image below is related to CryptoQuant
http://s14.picofile.com/file/8407657684/Screen_Shot_2020_09_03_at_10_57_18_AM_1024x410.png
