Oh, come on kingcolex. You’ve been here long enough to know what’s going on. Major bitcoin holders have run the price up to a unrealistic ridiculously high point. Hype and media attention have helped create a buying frenzy driving the price up. The major holders cash out for a fat stack of fiat so they can buy that island in the Pacific they’ve been drooling over. Then then they stop and let it recover again. Rinse and repeat. I’ve watched this happen 20 or more times since I’ve been here. They can’t let it drop too far or they’ll lose too much profit. I doubt it will go much below 50% of its ath (which would make the recovery time too long for the rinse cycle). Everyone just needs to spot the beginning of a whale dump and jump on the bandwagon. Then buy back at the bottom. That’s what day trading is all about. Fools lose and the rich get richer.
https://www.investopedia.com/articles/trading/06/daytradingretail.aspI am sure this is a part of it and probably a big part but I think we can't forget to attribute so many random people buying it and being easily fooled and scared. That along with big players and insider trading.
Sure but the “random people” are the key ingredient to the recipe. If there was no new influx of people buying in there would be no suckers for the whales to take advantage of and profit from. The “big players”, whales, Tim Drapers, Winkledouches, Barry Silberts, and Andreessen Horowitz are the bitcoin winners. They hire the top strategist/day traders and profit from and create the swings. They profit from the instability at the expense of the “random people”. Individuals have no business in bitcoin at this point. One missed fork or adjustment in the system will leave them penniless. They no longer have the luxury of just buying bitcoin and forgetting about it for 20 years or willing it to their kids. They need to eat, breath and sleep bitcoin to stay ahead of the game. ‘Random people” (poor people) don’t have the time to do that.
We’ve come right back around to the 1% screwing the 99%.