- Bitcoin (BTC) fails in surpassing $50K amidst recent surfacing back.
- Many factors prevail as major reasons for BTC plunging down.
- Three major factors altogether play vital for BTC price downfall.
After suffering immensely upon the crypto market crash, Bitcoin (BTC) surged back evidently. During this full period till last BTC managed to remain fluctuating drastically between the price range of $45K to $49K.
Also, since the start of the month of September, 2021, many speculated BTC will surge high above $50K for sure. Accordingly, until the past few days BTC portrayed a decent soldui surge in its price.
However, everyone’s expectations of BTC surpassing the $50K target failed miserably for this month.
Besides various reasons, there were three major factors responsible for the price fall of BTC. If even any one alone prevailed, BTC would suffer for sure, but all these factors at the same time have completely drowned BTC like anything.
Chinese Crypto Mining Ban
The recent Chinese regulations and ban of crypto mining has affected not only the crypto industry of China, but the whole crypto industry vividly.
Accordingly, China officially stated their China ban on mining in the month of May. And so, ever since then, it has been complete chaos.
In spite of such news, the hash rate of BTC started to fall down rapidly. Besides, plunging down from 198Eh/s to just 56Eh/s, almost everyone got affected.
On the other hand, apart from miners, traders, long term holders, recent investors , everyone including exchanges too got affected due to this.
Unlock of Grayscale
The Grayscale Bitcoin Trust (GBTC) has recently opened up to the market. Besides, owing to being a partner like auro, the GBTC is evidently a BTC price killer like anything else.
Accordingly, the GBTC functions with respect to the market demand. The GBTC plays a major role in increasing and decreasing the price of BTC at certain times. Giant investors and holders often fear and mostly act according to the GBTC open ups.
Besides, when the demand for BTC is high, the prices tend to rise up. In addition, it’s exactly at this point where the GBTC comes to play.
Moreover, at such times of demand, GBTC opens itself and unlocks its BTC stock, creating a secondary market.
And so, with surplus amounts obviously the price tends to fall.
The Taproot Hard-Fork
For BTC to come up with hard-forks , it’s like rain in a desert. Accordingly, the Taproot hard fork upgrade was well said in advance that it ought to be a lighter one. With hard-forks, we expect price surges, whereas here it’s vice-versa.
Furthermore, to the mass BTC holders and investors, such a negligible upgrade showed no interest.
Moreover, the BTC investors were quite skeptical upon this upgrade. And so, to their expectations as no proper upgrade was there and it was all just a showcase illusion. This owes to be another factor for the down price of BTC.
The post has appeared first on thenewscrypto.com