Bitcoin soared again after bottoming out, decoding the sell-off

According to comments from central banks – considered to be analysts, the decision of the entire Bitcoin founder to sell all of the virtual money held by the founder and the psychology of wanting to reduce the holding rate before entering the holiday of Investors acted together and caused the price to go down continuously.

The increase in Bitcoin and other cryptocurrencies simultaneously increased, ending the 4-day decline in price and made the whole world pay more attention to the digital world – the market has so far reached 500 billion dollars but often called bubbles.
In the worst sell-off since 2015, bitcoin has lost 24% of its value.In just the session on 12/22, bitcoin dropped by 30% when it hit the bottom. On December 21, litecoin also fell by 43% in just one day. However, at 11am on 23/12, data on showed that bitcoin increased in price compared to the previous 24 hours, to $ 15,143. The second largest market capitalization of ethereum was ethereum, up 18.62%, while bitcoin cash also increased 42%. Litecoin increased by 30%.


The “storm” of negative information about this market has temporarily stopped following the recovery. According to analysts, the comments from the central bank, the decision to sell all of the virtual money held by the founder of litecoin and psychology want to reduce the holding rate before entering the holiday of investors resonated and plunged prices.
As a move to “put more oil to a fire”, Michael Novogratz, who worked at Goldman Sachs, predicted that bitcoin could continue to fall to $ 8,000 and he will postpone plans to open an investment fund in crypto. Just a few days ago Novogratz predicted bitcoin could reach $ 40,000 in a few months.

Meanwhile, one of the world’s largest cryptocurrency exchanges, Coinbase, suddenly announced that all purchases and sales would be temporarily unavailable. In South Korea, Yapian, which owns the bitcoin exchange Youbit, announced earlier this week that it will be closed and in the process of bankruptcy after being attacked and losing 17% of its total assets.

Officials issued a series of warnings to investors also contributed to the downward momentum. In an interview with Bild, Felix Hufeld, the chairman of the German banking system watchdog BaFin, offered advice that trading bitcoin could cause investors to lose everything and become “the guy loss in bitterness”.
Three days earlier, the head of the European Union’s financial services agency Valdis Dombrovskis, asked the leaders of three EU financial watchdogs to update the warning sent to the public, saying this is an “urgent problem” based on the latest developments in the cryptocurrency market.

“The price has skyrocketed and increased very suddenly, in the future I will not be surprised if the market falls into a state of strong adjustment. It is worrying that retail investors who have lost money will ask why officials did not intervene to help them. And the answer will be: Because it’s a casino. The bitter truth is exactly.” Bloomberg quoted in the letter sent by Mr. Dombrovskis.

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