Even though in the middle of this week, Bitcoin had reached the $19.5 thousand mark. By Thursday, its value was already three thousand dollars lower. In particular, the closing of positions on cryptocurrency derivatives and the technical correction of previous growth are behind the extraordinary sell-offs.
Who thought the sudden rise in the value of Bitcoin of recent weeks would continue smoothly must be disappointed. Indeed, in a single day, it had shipped off roughly thirteen per cent of levels close to the 2017 record. But one of the main causes is closing positions of investors who had bitcoin derivatives bought. According to data portal Bybit.com, derivative positions closed for around two billion dollars, of which 1.6 billion were closed within twelve hours alone.
The second reason is that bitcoin, in short, grew too fast and too steeply, and so investors took their profits. The slump therefore goes partly to both the notch and the technical correction of the previous sharp strengthening. And last but not least there has been a cooling of interest in Bitcoin based on speculation that the US Treasury is taking some form of tracing of people using their own cryptocurrency wallet. Yet the market for Bitcoin is still under the influence of bullish sentiment, according to analysts, and so growth in the value of this cryptocurrency can be expected to see again.