Why the price of bitcoin is going down?

The rapid and consistent rises are often followed by descents, even at times equally rapid and consistent, and given that the price of bitcoin in recent weeks had risen a lot, a correction was absolutely in the air.

Especially since the index of fear and enthusiasm of the crypto markets was really at very high levels in recent days, most likely too high. These levels are difficult to maintain for a long time, therefore the hypothesis of a correction was more than suspect.

Added to this today: American crypto markets regarding the possibility of imposing by law the verification of the identity of the holders of non-custodian wallets to which withdrawals from exchanges are made.

There is another factor that has probably affected the sharp drop in the price of bitcoin today, that is a factor that has already produced similar results several times in recent years: In fact, ten times in the last two years at the end of the month the price has fallen more or less significantly.

Something very similar happened: In 2019 and in February and May of 2020 with decreases lasting from 1 to 4 days, often a few days before the deadline, and ranging from -3.7% to 19.4%, with an average of -10.2%, therefore, almost half of the time in the last two years, the price has on average fallen by 10%.

It looks like this November 2020 and maybe on December 2020 was no exception.

Given the scenario, these month-end drops should be considered systemic, albeit they have become rarer in the past eleven months.

What YOU think about this?