Bitcoin is falling down because it is not backed by anything. There is no central authority that controls it. It is not regulated by any government.
Its value is based solely on supply and demand. When demand for Bitcoin falls, its price falls.
The main reason demand for Bitcoin is falling at the moment is because of the coronavirus pandemic. The pandemic has caused a global economic slowdown.
This has led to a fall in demand for Bitcoin as investors seek safe havens for their money. The price of Bitcoin has fallen by over 50% since its peak in February 2020.
Another reason for the fall in Bitcoin’s price is the rise in the US dollar. The dollar has been rising in recent months as the US economy has performed better than other major economies.
This has made Bitcoin less attractive to investors who hold other currencies.
The fall in Bitcoin’s price is also due to regulatory uncertainty. Governments around the world are still trying to figure out how to regulate cryptocurrencies.
This uncertainty has led to a lack of confidence in Bitcoin, which has contributed to its price decline.
Despite the reasons for its decline, some experts believe that Bitcoin still has a bright future. They believe that the underlying technology behind Bitcoin, blockchain, has huge potential and that Bitcoin could rebound in value once the global economy recovers from the pandemic.