Top Three Hard to Ignore Reasons Why Bitcoin Price Could Fall in September 2018
3 Reasons behind the Falling Price of Bitcoin
Lately, crypto hobbyists have found themselves asking why the value of Bitcoin has been plummeting. Many speculators had hoped that the cryptocurrency would recover after the dip propagated by the Goldman Sachs fake news earlier this month.
However, this has not happened as the coin’s value continues to fluctuate just above the $6,000 mark. Similarly, last week’s brief rise that resulted in BTC peaking $6,580 after the September 12th low of $6,250 turned out to be another false dawn.
Michael Novogratz, a billionaire investor, also believed that the price of BTC would be bullish following the recent dips. Like other investors, his hopes were crushed. In this regard, he recently tweeted that crypto investors retraced the bubble, a factor that gassed their expectations.
Why Is The Value Of Bitcoin Depreciating?
Reduced Trader Interest
This week, on the 16th and 17th, the trading volumes recorded for Bitcoin were the lowest since November 2017. Furthermore, according to CoinMarketCap, the 24-hour trading volumes for these two days were $3.1 billion and $3.2 billion respectively, a figure that is way below the typical $3.5 billion.
The reduced trading volumes are a significant pointer of the declined interest in the world’s pioneering virtual currency. As expected, a reduction in interest translates to bearish market trends. Nonetheless, the 24-hour trading volume had increased to $3.9 billion at the time of writing.
Mt. Gox Creditors Meeting
The creditors to the now fallen digital exchange Mt. Gox are expected to convene a meeting on September 26. Apparently, one of the matters to be discussed at the meeting is the possible liquidation of Bitcoin to repay the amount owed to the creditors. This could result in the plummeting of the value of BTC to levels unseen in the past two years.
This is because the MT Gox trustee has over 170,000 Bitcoin in its custody, an amount that is enough to impose a significant impact on the entire market. Regardless of the outcome of this convention, the implications are bound to be severely adverse.
Pending SEC Decision On Bitcoin ETF
The set deadline for the SEC’s decision on the CBOE-sponsored Bitcoin ETF is September 30. Usually, the financial regulator announces such rulings on the deadline day if they have been finalized. Otherwise, they often inform the relevant parties before the due date. Basically, if the application has been rejected, this will be made public on September 30.
The probability of the SEC approving the Bitcoin ETF is very low. As a result, if the authority opts for either of the paths mentioned above, it is likely to spur an impulsive reaction in the crypto market that mainly involves the selling of assets. This would lower the price of BTC significantly.
All that said, the next few weeks are highly likely to be marred with unprecedented levels of uncertainty. It is evident that the bearish markets will persist for a considerable period unless a miracle takes place. Nevertheless, the crypto markets can turn on a single instance without notice.