Bitcoin price dropped sharply in the past few hours, causing a panic sell-off among some crypto investors.
It neared $20 before falling below $19,000, then below $17K, at the time of this report, it gained slightly floating around $18K/1BTC.
One of the earliest bitcoin miner TheCryptoDog on December 8 in a sarcastic tweet hinted it had sold all its investment in bitcoin.
“I sold all of my bitcoin. I don’t have ANY exposure to the crypto markets. It’s over, I can finally see my friends and family again”.
Is it the right time to sell bitcoin?
There may not be a consensus time to sell ones bitcoin, but we’ve seen investors buying the dip and dispose of a portion of it when the price spiked.
For instance, the story of Kristoffer Koch who bought 5,000BTC for just $27 back in 2009 has been an inspiration for upcoming investors in the most valuable digital asset.
Government’s regulation and body language toward cryptocurrency could also be one of the reasons for a sell-off.
From a retail perspective, the head of growth at decentralized exchange Tokenlon Lucas Huang said: “an 80% increase in bitcoin price over only two months might be a profit too tempting not to take.”
While the CEO of CryptoQuant Ki Young Ju believed that the availability of sizable amounts of bitcoin on exchanges provided by large holders (bitcoin whales) contributed to the price drop.
On why BTC dropped to $18K, Coindesk’s Sebastian Sinclair quoted him as saying, “When it comes to short-term price prediction, I think the most important data is supply and demand”.
But TheCryptoDog says what makes bitcoin and cryptocurrency more interesting is non-government regulation, according to him government involvement would take away the fun.
“It was a nice ride. The institutions are here, government regulation is upon us, the fun is over. I advise you all to do the same. Good luck,” he said sarcastically.
But it seems some of his new followers who didn’t understand his message well described his tweet as misleading and “expensive”, but it’s obvious that The CryptoDog is worried about government’s regulatory move.
To PoppinRiki Rik, the government would find it extremely difficult to regulate BTC, “BTC cannot be regulated by any gov. Because It cannot be printed by any banc. It’s absolutely uncommissioned. Govs can regulate markets only. Anyone can mount a node to participate in the decentralization delivering power to the citizen. Otherwise, it is a fork”.
Last Updated on January 2, 2021 by Opeyemi Quadri