Data Reveals the Reasons Behind Bitcoin’s Big Dip

As everyone knows, bitcoin has dropped roughly three-fold from its December peak. At the height of the mania it touched $20,000 but has since fallen to as low as $6,000. The question of what caused the great decline is one that most bitcoiners have an opinion on. In a bid to settle the matter once and for all, Chainalysis has pored over the data to determine what happened.

Bitcoin and the Bottomless Dip
Chainalysis is a respected research team whose data scientists and blockchain analysts have previously claimed to have worked out where Mt Gox’ missing bitcoins wound up. In “The Great Bitcoin Price Dip: Its Causes and a Way Forward”, Chainalysis turns its attention to BTC price action over the past three months. A lot of what’s in the report could have been deduced without glancing at a graph, but it’s interesting to see these observations backed by evidence.

According to Chainalysis, bitcoin’s big sell-off was a result of “Regulatory news driving trading volumes and a peak of positive sentiment pushing price; and a lack of fundamentals resulting in herding behaviour across increasingly correlated exchanges and cryptocurrencies.” Basically, we’re all just a bunch of herd animals driven by our emotions, and when one of the flock gets spooked, we all do.

Read the rest of rhe news article here:

https://news.bitcoin.com/data-reveals-reasons-behind-bitcoins-big-dip/