FUD: The Reason for Bitcoin Downturn?

Uncertainty and doubt increases fear among investors and force them to sell their assets at lower prices. This looks like the case with Bitcoin nowadays. Due to this FUD among investors, it is expected that the Bitcoin market will crash eventually.

Investors did not previously show an interest when Bitcoin was trading at a high price with a high market cap. At that period investors were suffering from FOMO. To take leverage of the arbitrage advantage, investors do not want to be left out. This fear of missing out is rooted in many investors’ wished that they had bought some Bitcoins previously.

The Bankruptcy of Mt. Gox causes prevailing downturn of the Bitcoin in 2014. It was the biggest network for bitcoin in the world. However, fate was not with them when 850000 of their customers were attracted to other currencies. This transfer of customers resulted in its bankruptcy. Though Mt. Gox stopped, their operation but 160000 Bitcoin were flowing in the market. Now it is expected that those idle 160000 Bitcoins can hit the market any time which will eventually crash the market. Mt.Gox will release payments against the claims after October 22.

The fear of uncertainty and doubt can even trigger the prices of bitcoin and altcoin even go lower. This Bitcoin downturn will also affect other cryptocurrencies. Investors will sell their currencies at low prices because of FUD. But some investors believe that Bitcoin is far from dead, and it will rise soon because of its underlying technology.