Recent decline?

[ranlo]

So what we would experience is a drop (in your scenario a pretty large one I think), followed by a slow incline.

That's what I think, too.  Which is why I think this period of time (the coming of the ASIC's) is the moment of truth for BTC.  If there was one mistake made in design, it was in choosing a crypto algorithm that was "too easy" in the sense of chip processes.

Keep in mind though that BTC is over 4 years old. So it's taken 4 years to get ASIC's and such created. I think in the next few years Scrypt will also be ASIC'd.

[CompNsci]

Panic when there is a large sell causes significant flash crashes, where prices drop rapidly in 30 mins. It takes longer generally for the price to head back up.

In the long, it will as businesses and infrastructure develop.

[ScopeXL]

One person mentioned earlier that the drops also happen on the weekend (especially on Sundays) due to no bank's being open. And I heard a rumor that a few big players like to move the market on the weekends by selling a ton of bitcoins and buying them back up. I can't confirm this. Simply things I've heard around the block.

[woodle]

the price is still going low.

[ranlo]

One person mentioned earlier that the drops also happen on the weekend (especially on Sundays) due to no bank's being open. And I heard a rumor that a few big players like to move the market on the weekends by selling a ton of bitcoins and buying them back up. I can't confirm this. Simply things I've heard around the block.

This is actually an interesting theory. It makes sense as well... though I think there's a somewhat large element of risk there. When you do a mass sell to get the price down to re-buy, you are hoping that others will also sell theirs. If they don't, you lose.