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Why does Bitcoin keep crashing?



The Bitcoin course is having a difficult time at the moment. After the all-time high in early November, BTC has lost over 15% of its value. The course has been trying to get out of the correction for weeks, but the course keeps crashing again. Why do these sharp price drops occur all the time?

Bitcoin strong correction in the last few weeks

After a new Bitcoin all-time high of over 68,000 dollars was reached in early October, the most important cryptocurrency has been going downhill again and again in recent weeks. For some time now, the Bitcoin price has been below $ 60,000. This has been taking the air out of the bull market for weeks.

Within this correction, the Bitcoin price moved up again and again and headed towards $ 60,000. But afterwards there were repeated extremely rapid price crashes. Only last night the rate fell from $ 59,000 to below $ 54,000 at times. Why are there such severe crashes again and again?

Bitcoin reacts strongly to the American stock market

With the introduction of Bitcoin ETFs and the increasing institutional use of Bitcoin, the involvement of the Bitcoin price with the American stock market increases. This is how the last major Bitcoin crashes can be explained. These occurred at the same time as the crashes on the American stock market.

Developments on the stock market and in the global economy have always influenced the Bitcoin price to a certain extent. But with the developments mentioned, the crypto market cannot completely decouple from external markets. In the medium to long term, however, Bitcoin should develop independently.

When do we get out of correction?

The frequent crashes are very frustrating for investors at the moment. But the bull market continues. All major factors continue to paint a long-term bullish scenario. The short term of $ 100,000 popular thus persists. However, the time frame could shift.

It is important that the Bitcoin price breaks out of the correction in the next few weeks and rises again towards the all-time high. A bullish December is still likely for the Bitcoin price. But we might not see the peak of the course until the beginning of next year.

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