Why Bitcoin’s Price Dropping??? 2 Reasons Why — Issue #6

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The markets are in the RED today, and we’ve been in this prolonged dip for the past week. Bitcoin is definitely responsible for this market correction, but why did this happen? To answer this question, let’s look at the charts:

1. Bitcoin volume has dried up since the 5k level

Ever since Bitcoin surpassed the 5k level, we really haven’t had much buying volume for Bitcoin. As you could see, the buy volume for Bitcoin has decreased since blowing past $5,000. This correction in the market was anticipated solely based on the fact that the buying pressure isn’t holding for Bitcoin.

2. Kazakhstan Turmoil

Kazakhstan was considered a prime location for bitcoin miners due to the mining bans that took effect in China. Because of the immense amount of energy that Bitcoin mining consumes, the people of Kazakhstan have been protesting for an end to bitcoin mining in the country. Bitcoin miners no longer have a home in Kazakhstan.

The Future For Bitcoin Miners

The long term future for Bitcoin miners globally is looking pretty bleak. However, there is is short term future in the country of Spain. According to María Muñoz, Deputy Cs in Congress,

The protests in Kazakhstan have repercussions all over the world: also for the #Bitcoin. We propose that Spain position itself as a safe destination for investments in cryptocurrencies to develop a flexible, efficient and safe sector.

This story is still developing and I will share updates with you as I receive them.

Thank you for reading and happy investing!

-Bully