Healthy dump
We're down 50 dollars since last night and the buying pressure completely stopped. Nothing healthy about it.
So we know how illiquid the market is, from the 30K dumper.
Speculation: Someone with a large stash of fiat money, could be the fund (based on the comment that someone in OKcoin carelessly revealed) or some other rich entity, person or institution. Looking at the trade volumes, which easily can be several hundred thousand coins per day in aggregate, they thought that the start (maybe 1000 BTC) was piece of cake for that large market. But we got a spread of 50 USD between OKcoin and bitstamp, less differences with Huobi and Btcchina. After more than a day, there is still a spread, while the normal situation is that bitstamp is a few dollars higher. The arbitrage is probably small, we know that it is quite expensive in fees, and take a long time to shuffle the fiat around. Probably, the reason for the normally close prices is that the normal bitcoin trader uses more than one exchange, and when he wants to buy he uses the cheapest.
So they have learnt that when they touch the exchange, they drive the price. What will they do? I guess after some consideration, they will start to use all the large bourses and spread out the buys. That could happen in a few days. They will learn that they still will drive the market, but this time without the large spread. So one conclusion they might draw, is that bitcoin is too small, it will present the same type of problem when they want out, and just give up. Or, they just bite the apple and let the price rise.
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