It is almost certain as well that the coins dumped are bought by a lot of independent traders, and therefore the wealth distribution is set to level out eventually.
This point is something which made me think twice.
How can you say it is only via dumping that bitcoin will be spread to new people in smaller proportion and will make everyone price taker? It is already 8 years of bitcoin and I think there are barely (<1%) investors who have significant reserves of bitcoin.
Now suppose, price of bitcoin keeps roaring. New independent traders want to enter market to make profits with flow. They tried buying bitcoin at present price and raise demand. Demand increases, price increases. Dump philosophy hasn't come anywhere, we are already much equal.
It is because when dump occur those who are hesitant to get in or buy bitcoin will see that it is a chance to buy bitcoin at lower price. They will definitely scoop some bitcoin and these people will then join the Bitcoin community. Not all investors will buy at a rising price. Most of them are waiting for either correction or dump to get in so they can rake more profit.
And what about those believers who are eagerly waiting for price crash? If bitcoin gonna fall by $500-700 within few days,
mind me it will bring some opposite results as giants will try to accumulate more btc because they know btc will rise sooner or later
We have already been there, many times (in relative terms)
If today's prices fall 700 dollars tomorrow, the Bitcoin price will be at over 1,600 dollars per coin, and I can assure you a lot of ordinary Bitcoin folks will be happy to pour more of their fiat savings into Bitcoin. The problem is that Bitcoin is highly unlikely to crash nowadays that much within so short a time without a true cause (i.e. due to sheer market speculation or manipulation), though this doesn't mean that it is completely impossible as such. If, nevertheless, this still happens due to some really threatening event, the giants you refer to will be the last to jump on the Bitcoin bandwagon in that case