For the past month or so, the price of Bitcoin has been on a decline. Shortly after the New Year’s it feel through the floor of US$ 300.
As I write this article, the price of Bitcoin is US$ 270. Why is the price falling? If you were to ask me, I would say I’m not sure.
Too much liquidity in the market? People cashing their Bitcoins after the holidays, where they could have racked up some bills. People might be holding on to a few bitcoins, and decided to cash them out, and pay their bills (the falling prices certainly don’t help).
The article on Reddit can be read here. Its a pretty accurate depiction (in my opinion) as to what is contributing to the downfall in price for Bitcoin. The tl;dr version is: 1,470 Bitcoins have to be sold everyday due to cover electricity costs by miners. These are the coins they have to sell to be able to sustain the utility costs they incur due to mining.