So it's no secret that the market and bitcoin included have been crashing in the last couple weeks, hitting a low around 9k and then lingering around 10k and now looking to retest that bottom again. It seems like it's been bad news after bad news and then a lot of FUD around that. Here's what I don't get.
If we buy in to the logic that at these prices only the weak hands should sell out of fear, because the price is so low and a recovery is bound to come along, then surely there is only a finite number of these people that are willing to sell at such 'low' prices. You would assume that most people with a willingness to sell around 10k would have already done so, so why do we keep having more and more people selling and pushing the price down?
Weak hands aside. There's two very big reasons why it can keep going down.
The first which no one has responded to you about yet is the derivatives market. Now that people can "short" BTC through forex platforms etc they can make money from selling before buying. There's no loss to them if they're pushing the market down, on the contrary it's where their profit comes from, the lower the better for them.
Second reason is the fact that there are still huge amounts of people (prob the majority) that are way way ahead still, like at 2x or more if they bought pre December. That's a hell of a return still even if they do pull out now. No other market will they see that return in such a short time so they haven't lost if they sell, they just didn't make it to the moon. Stratosphere is acceptable to them.
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Who are you kidding? It's dropped over 50% from ATH. Bitcoin is dead and the big players are selling down probably whilst shorting it as well. No smart investor is going to swipe 50% off their portfolio and say there's any confidence in this. I'd dare say most have already exited and are just playing it further down to wipe out retail investors as much as they can. That's how they make their money. It wouldn't surprise me to see BTC below $1000 by the end of this year. It's dotcom all over again and playing out exactly the same.
