Digitaal geld

Bitcoin in free fall: ‘Small transactions greatly influence the price’

The rise of bitcoin has come to an end after months of rise. The digital currency lost 14 percent of its value in one day today, the largest drop since March 2018. At around half past eleven, the coin was only worth $ 29,000. Is there a bubble or will the currency appreciate again?

The price of the crypto currency has been on the rise since the fall. Another record was posted on the second day of the new year. On January 2, bitcoin was worth $ 30,000 and it didn’t stop there. A day later, the counter pointed to $ 34,000.

Analysts pointed out the increased popularity among major investors, who see the currency as being beneficial. For example, asset manager Fidelity announced the launch of a bitcoin investment fund in August. Cryptocurrency in Spain is popular.

Another explanation is that several tech companies, such as Square Inc, have turned some of their cash reserves into bitcoin. And MassMutual, one of the largest insurance companies in the world, bought $ 100 million worth of bitcoin in December.


The increased popularity is creating a shortage, says ING economist Teunis Brosens. “The scarcity also creates an extra volatile market.”

The bitcoin existed for 12 years yesterday. Currently, approximately 18.5 million coins have been issued. Only a small part of this is traded, according to Brosens.

Bitcoin is going through the roof, currency has doubled in value in two months

Lost access code

“Some of the owners are on the coin, they do not sell. Some cannot be traded because the private keys, the numerical code with which owners gain access, have been lost,” he says.

So those coins will never move again. And then there is still much speculation that the founders own and hold some of the coins themselves, Brosens explains.

20 percent but traded

It is estimated that only 20 to 30 percent of the cryptocurrency is traded. “That means that relatively small transactions have a huge influence on the price,” says the ING economist. Demand only needs to increase a little to send the price completely through the roof. best crypto website Netherlands is popular.

Bitcoin is still worth much more than in the previous free fall in March 2020, when the rate fell below $ 5,000. “With cryptocurrency it is always difficult to say what explains the rise or fall. We have also regularly seen that tens of percent increase or decrease in a day,” says Brosens.


Regulators are active in the normal money market. This is not yet the case with bitcoin. As a result, the market can be highly manipulated, Brosens knows. “I don’t know if that is the case now. But you cannot rule out that whales are busy and dump the coin.”

Whales are holders of very large amounts of bitcoins. Currently there are about 1,900 investors who can be placed under this category.

Bubble …

The question is where the bitcoin is going. Does the drop in price value indicate a bubble or is it a temporary dip due to the volatile market.

Yale professor Robert Shiller, who received another Nobel Prize in 2013, is convinced of the former. In a century, the currency will no longer exist, he claimed in 2018, when the exchange rate fell sharply in value.

Or the new gold?

However, he also has opponents who think that the value will increase significantly. By the end of 2021, the coin will be worth $ 318,000, Citibank analysts believe. “Bitcoin is the gold of the 21st century,” said an internal report intended for customers but leaked.

Citibank is supported by Plan B, a Dutch analyst who works in the financial world, regularly appears in podcasts and writes and tweets about bitcoin via an anonymous account. He came up with now famous models to predict the course. He states that the coin could reach a value of $ 288,000 by the end of 2021.

It is far from being that far, but by the end of the day the currency had already recovered somewhat from the previous price drop. A bitcoin was worth $ 32,000 by the end of the afternoon, so if it is a bubble, it hasn’t burst yet.

Bitcoin is under attack by the elite, is it a conspiracy?

Everyone likes a good conspiracy from time to time, many a film has raked in millions with it. At the moment bitcoin is under attack from all sides, just about all countries and central banks are pushing experts forward to put bitcoin in the dark. What is going on? Is this a coordinated attack?

The coming months will be even worse

Meltem Demirors, CoinShares’ chief strategy officer, expects the attacks to become much more aggressive in the coming months. She also gives a reason, which is that the elite and institutions are gearing up for hyperinflation. For this they want to take all good assets from the middle class.

She calls this modern feudalism

No one wants to be associated with conspiracy theories, but it’s hard to shut yourself off from the attacks of the past few months. In addition, generalization often leads to weak argumentation, but you can hardly do without it.

Three scary properties of bitcoin

At a time when money printers are on full blast, prices around the world are rising (US has highest inflation in 12 years) and governments have had to keep the population inside for a year and a half, free money can be a scary thought. Bitcoin is the only asset in the world that no government has control over. Over which central banks or companies cannot influence. Bitcoin is unregulated, decentralized and uncensorable. Three qualities that agencies that exist by the grace of control are not fond of.

The attacks follow each other in rapid succession. So governments are skeptical and banks want to control the flow of capital and profits from the blockchain.

Jointly curb Bitcoin

Meltom calls the attacks 21st century neo-feudalism. Or as a well-known online dictionary describes: In this system, land was allotted by feudal lords to their vassals, in exchange for an obligation of personal loyalty, military assistance and tax revenue. https://folm.io/ has enough information. This image is reinforced by the fact that authorities try to curb free money with regulation.

Hand in hand comrades

Why do Chinese and American regulators take the same stance while constantly attacking each other on the global stage? Simple: no control. That is why there is a race going on between the central banks of China, America, Europe and all other parts of the world to issue their own digital currency. This is just about control. And those are not just our words, below is Agustín Carstens, the boss of the BIS. BIS stands for Bank of International Settlements and is seen as the central bank of all central banks.

Last week, the BIS, together with the IMF and the World Bank, made a plea to the G20 for central bank digital currencies. https://moveco.io/ has enough information. As if the twenty most powerful countries still had to be convinced.

Soft Revolution

Bitcoin is decentralized and the first payment system that really belongs to everyone. A true grassroots revolution. Despite all the attacks, bitcoin will continue as usual. Every ten minutes a block is added, so that at any time of the day, everyone can continue to protect their value. There is no bitcoin army, there is only the network and its users.

Ethereum Whale Account Trades 100,000 ETH Coins Amid Price Drop

Ethereum, the world’s second largest cryptocurrency, has fallen sharply in price in recent days. Amid the dip, an ETH whale has transferred a significant amount of money to an unknown wallet. The value of the transaction – 100,000 ETH coins, approximately $181 million (approximately Rs. 13,500 crores) – was highlighted by Whale Alert, a blockchain tracker and analytics firm. Hours after the trade, Ethereum is trending upward, gaining more than 6 percent in just 24 hours. Given the positive market trend, the person who bought the digital coins will benefit greatly from the transaction. (MATIC) Polygon price has risen.

In finance, a “whale” is an entity with sufficient power to influence the market of an asset by triggering massive transactions. However, the main problem with whale accounts is that they often accumulate billions in digital coins, giving them the ability to single-handedly influence the cryptocurrency market.

According to data published by Whale Alert, the transaction took place around 9:30 p.m. (IST) on Monday. At that time, the Ethereum price was about Rs 1.36 lakh. However, in the past 24 hours, the cryptocurrency has appreciated more than 6 percent, according to data from Coinbase.

Cryptocurrency firm FTX Trading’s valuation rises to $18 billion

Even on its official Twitter handle, Whale Alert mentioned the transaction. “100,000 #ETH (181,944,560 USD) transferred from #Gemini to unknown wallet,” read the tweet. Ethereum, the Bitcoin rival, has an estimated market cap of Rs 16.2 trillion, according to Coinbase. The recent price drop has been partly attributed to the fact that one of its co-founders has left the cryptocurrency industry. Chainlink – LINK price has risen.

Anthony Di Iorio, who helped build Ethereum in 2018, said he quit the cryptocurrency ecosystem because he wants to solve “big problems”. The 48-year-old told Coindesk that he doesn’t want to be known “as a crypto person”, but instead wants to be known as a “troubleshooter”.