Home / news / Economists explain the reasons … a resounding fall of the “Bitcoin” price and a talk about market manipulation of “whales”

Economists explain the reasons … a resounding fall of the “Bitcoin” price and a talk about market manipulation of “whales”

The “Bitcoin” hashtag topped the trend lists on social media platforms, in conjunction with the resounding fall in the price of the digital currency during the past hours.

The value of Bitcoin decreased by more than 20%, as its price reached 45 thousand and 150 dollars, after it had crawled about 60 thousand dollars during last week’s transactions.

This decline comes after several institutions announced their acceptance of dealing in digital currency, the most prominent of which was: Tesla Company, owned by American businessman Elon Musk, and MasterCard Financial Services.

Tweeters expressed their surprise at the decline in the currency’s price, and others questioned the reasons that led to this resounding fall of Bitcoin.

The interactions attributed the reason to the existence of “whales” manipulating the currency market, at a time when economists saw the decline as a normal matter, referring to the fluctuations of digital currencies.

“The story is that Bitcoin has always been two steps forward, a step back, and then two steps forward … Few people understand this,” American investor Tyler Winklevus commented in a tweet.

And the significant decline of the most famous digital currency sparked a selling wave in various cryptocurrency markets with growing investor concern about extremely high valuations, at a time when dealers who form large positions sell the currency to reap profits.

Cryptocurrency markets have seen frenzied activity this year as top wealth managers and companies are taking the emerging class of assets seriously, pumping money into the sector, and raising confidence among small speculators.

And yesterday, Monday, US Treasury Secretary Janet Yellen strongly warned that investors would lose their money due to injecting investments in the virtual currency, noting that speculation is the basis for the volatility of Bitcoin’s price, and this is high risk.

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