The bitcoin price fell again yesterday from around $10,600 to $10,445 which is a drop of $400 in less than an hour.

The drop was estimated at 3%, according to data from CoinMarketCap.

The drop may seem small compared to the previous drops, but why did Bitcoin drop three times this week?

The price of Bitcoin reached its peak last Tuesday at $12,067, immediately after that the fall began.

Last Wednesday was the first major drop, when Bitcoin fell from $11,726 to $11,395 in just about two hours.

This was followed by a drop on Thursday, when the bitcoin price fell from $11,259 to $10,849 in about an hour.

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The last drop occurred yesterday.

But the bitcoin price has since recovered to $10,459 at the time of writing.

So why did bitcoin crash during one of the busiest weeks in the cryptocurrency market?

Reasons for successive declines:

Bitcoin works in mysterious ways, but experts have presented some options that might be among the causes of the Bitcoin price drop.

Simon Peters, a market analyst at the crypto-trading site eToro, suggested a number of possible reasons.

He said that the main possible reason is the mass selling by miners, as “Simon” stated to source:

Blockchain analysis platforms have reported that mining pools have recently moved in higher-than-normal volumes by selling bitcoin to exchanges.

Charles Bouverd, a researcher at Quantum Economics, which specializes in economic research on cryptocurrency, agreed with Simon’s previous statement, saying:

One factor could simply be miners selling their cryptocurrency.

Miners are moving in unusually large quantities #BTC since yesterday. # poolAnd the #ClayAnd the #HaoBTC They took bitcoins from mining wallets and sent some to the exchange. pic.twitter.com/N3E3mX4QKn

Read:Chinese company buys $40 million worth of Bitcoin and Ethereum

– CryptoQuant (@cryptoquant_com) September 3, 2020

Philip Gradwell, chief economist at Chainalysis, used his company’s tracking technologies to discover the path and source of bitcoin’s flow to trading platforms at record levels this week, and reported on Twitter:

Bitcoin inflows to cryptocurrency exchanges reached 92,000 yesterday, the highest in 37 days, as people rushed to sell at nearly $12,000 on September 1.

# bitcoin Inflows to the exchanges hit 92,000 yesterday, their highest in 37 days, as people rushed to sell at nearly $12,000 on Sept. It is possible that this selling pressure has not yet been fully implemented. Data from here: pic.twitter.com/8jxaS2lZsW

– Philip Gradwell (@philip_gradwell) September 3, 2020

If a lot of people get rid of bitcoin in the market en masse, something that often happens when prices go up too much because traders want to make money for a profit, the bitcoin price will likely go down, often faster than it goes up.

While some analysts attributed that the Bithumb takeover caused the Bitcoin drop, the day before yesterday, the police raided the Bithumb platform, which is the largest cryptocurrency exchange in South Korea.

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The raid, according to The Seoul News, is linked to an initial sale of BXA tokens worth $25 million.

Another reason that may be responsible for Bitcoin’s volatility is the impact of the stock market on the crypto market this week.

The US stock market, which rebounded this summer after the March crash, tumbled, but over the past two days, the Nasdaq is down more than 7%, and the Dow is down 2.2%.

Bitcoin is often seen as an asset to return in a time of crisis and as a safe haven – which automatically means it is not tied to stock markets – but bitcoin crashed along with stock markets in March, and the same may have happened this week.

Despite the successive decline of Bitcoin, the coin has not fallen below $10,000.

Bouverd commented on this by saying:

I think there is strong support around the $10,000 level.

While Peters commented:

We’ve seen $10,000 get tested twice in the last 24 hours.

It appears to be holding up for now.

This may present an opportunity for the bulls who were sitting on the sidelines to participate now.

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