Feared Of Declining Value Of Bitcoin- Know The Reasons

We see that from the past one month, the performance of bitcoin is not good. It has shown a continuous red rally in the global market. The investors who invested in crypto are tensed that; the reasons that made the most stable crypto of the world fall so miserably.

So, let us discuss in detail what the reason for driving the major price fall in bitcoin.

Continuous bad news in the market 

Bitcoin investment

It is a truth that, like the share market, the cryptocurrency market is also driven by the news from the market. Some bad news is floating regarding the bitcoin in the market, which leads to its decrease in price. The government of many countries has suggested regulating the bitcoin trade.

Amid this news, the price of the Bitcoin started to fall in the global market, from which it is unable to recover to date. Later the countries have announced that it is an independent blockchain which government can not regulate.

Swaying in the perceived value

You must have heard the case of the hold. The value of gold depends on the value it is serving the population in the present time. If the demand for gold is high, then the price rises, and if it is low, then the price will decrease. The same is the situation with Bitcoin. When the news of government regulation floated, the people started to sell the bitcoin they have. Due to this sudden decrease in demand, the pricing fell.

Uncertain Future

The governments worldwide surely cannot control the trading of bitcoin, but they can surely ban them in their countries. Recently many countries have banned the currency trade in their estates due to which the currency suffered huge losses. Later, the ban was lifted, but it is still not confirmed that the government will allow its population to trade.

Breach in security

Many times you would have heard of the news of a security breach. A recent incident happened in the USA, where someone has started donating Bitcoin from some unknown account. Such breaches in security take away the audience’s trust, and they pull off the investment they have made. So, ultimately it also becomes a reason for a fall in the price of the crypto.

High profile losses

It is noticed that sometimes the value of bitcoin shows volatility that is not expected. Such unexpected actions lead to some great losses to the investors having millions and billions invested in the bitcoin. The negative impact of such losses is seen as people seek the example of such looses and fear to invest more money.

Tax retreatment

The internal revenue service’s of various nations considered the bitcoin as an asset for tax purposes. This consideration creates a situation among the people that they should invest or not invest in the crypto. The benefit of the doubt in such cases always goes to the not investing side, which is also a reason for the decline in bitcoin prices.


These are the various reasons which worked together in the decline of Bitcoin’s price. Now you can analyze all these reasons properly and make a fair decision regarding your investment in Bitcoin.

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