After the second week of November came into the scene, the crypto market on the head with the top crypto Bitcoin, started to drop at an accelerated rate, continuing with dips in the weeks to follow.
BTC is still dropping on November 23rd with another dip of nearly -4% in the last 24 hours, even though the crypto market had a chance to acquire a rebound several days ago when BTC was seen up by over 3%.
Bitcoin (BTC) Price Today – BTC / USD
However, dips aren’t leaving the market, making the currencies going down against the fiat, touching new lows day by day as Bitcoin made it to another low for 2018, this time trading below the value of 4,400$ per one unit.
Why is BTC falling at the current moment? Here are some possible reasons that might provide at least some answers to the Bitcoin carnage of 2018.
Bitcoin Mining Troublesome: Is Bitcoin Losing Value Due to Miners’ Concerns?
One of the potential case scenarios that are affecting the price of Bitcoin with leading BTC towards new dips is said to be related to the problems the miners are experiencing.
Apparently, the rewards for miners are dropping significantly due to the latest dip that Bitcoin is going through, but this is not the only issue that BTC miners are going through.
Perhaps one of the greatest concerns for BTC miners is the competition and the need of buying more expensive mining equipment and spending a lot of energy for mining BTC units.
Bitcoin is using Proof of Work, which means that mining isn’t cost-effective, at least not as much as the miners would want it to be. That is how expenses for validating BTC transactions are pretty costly when compared to the rest of the market prices.
Furthermore, it is presumed that a lot of miners are selling their BTC units to cover the cost, which is said to be partially affecting the price of BTC in the market.
Bitcoin is Dropping Due to a Major Selloff?
Another potential reason for the biggest drop BTC has gone through in 2018 is said to be strictly related to the major selloff that is presumed to be responsible for the general crash of the cryptocurrency market.
The market has been the victim of problematic trends since February 2018 after the cryptos made it to their record prices, and ever since the market started to plummet.
As the time is passing the drops are pertaining and becoming more obvious with new lows, presumably having investors fleeing the market out of fear they will lose even more of their investment that by far in the previous 10 months.
That is how selloffs are more likely responsible for the majority of dips that Bitcoin is going through.
BTC Drops: Bitcoin Too Expensive?
Some are indicating, mostly coming from anti-Bitcoin lobbyists who claim that Bitcoin has no value that Bitcoin is dropping because there is no need to purchase BTC any longer now that there are hundreds of altcoins that offer faster and cheaper transactions.
The same lobbyists are claiming that BTC has no value at all and that “it was about time” for BTC to start dropping at its current rate. However, one must not forget that BTC is not an isolated case as the entire market is dipping.