Bitcoin prices have fallen today massively. From nearly 20,000 usd to 12,000 usd so far.
Alt coins such as litecoin, ethereum, ripple and others have fallen too. E.g. ripple fell to almost 0.7 (0.6 usd on some exchanges) from 1.2 and so on.
Now the big question is, why did it fall? My theory (like most others) is related to christmas and holidays. Let me explain how.
Why Bitcoin Falls at Christmas
We had this theory suggested and implemented for some time before the fall. Christmas and holiday season is a trigger for bitcoin price fall .
The reason to this fall is quite obvious. Let me explain.
A common person who owns some bitcoins or any other crypto currency, holds it for profit in future or to buy sell online from websites which support them.
Now imagine a scenario in which you’re an average bitcoin owner. What’s your assumption that how much percentage bitcoin will go up in christmas week? 5% maximum? 10% maximum? Almost that right?
Now imagine that your local store gives a 50% discount on some items that you always wanted to buy. Is 50% profit better or 10%? You got it right!
So that’s why general public cashes out bitcoin and goes to do shopping on the christmas sale and to get gifts for their family and loved ones.