Can this explain the current situation with the drop in the price?

[Kakmakr]

During last year we had one of the best years in Bitcoin <More than 800% increase in the price>

My theory is that institutional capital were invested to transfer ownership from true Bitcoiners to Wall Street speculators. They knew that most coins were held with private individuals and they wanted to take those coins from them to be able to shift the power to manipulate the coins value in the future.

They want to be the new Bitcoin whales. ^hmmmmm^

Why? Well, if you can manipulate the price, then you can increase profits with Bitcoin future contracts and even Bitcoin ETF's, when they come to the market.

They knew most private investors will sell at a specific point and it took up to 800% increase in the price to accomplish that. <for them, that is a few Billions now, but with the power to manipulate the price in the future, they would easily make up those losses>

What do you think? 

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[pinkflower]

I dont think so. If you're talking about the real BTC whales/Libertarians then they would never give up their coins to give to Wall Street speculators. They are called HODLERS for a reason. Its rule everything or bust for them.

What happened in the market was a natural cycle, the same as any market bubble.

[alyssa85]

Nah. Bitcoin went up too fast. Most long time holders had never seen a vertical rise like the one that happened last December. Mst people would have had a $10,000 target to sell (they would have bought in the $500 to $1000 range).

When it went over that, they cashed out, knowing it was too good to be true. As the mempool cleared and people finally got their coins to the exchanges, people sold.

It has nothing to do with Wall Street and everything to do with the fact that bitcoin went from $10,000 to $19,400 in a single month. and people exited

[hugeblack]

The main factor is the rise in the price of the bitcoin past year But it was the lack of good news that led to such a decline.
The correction had to be made, but some people [Bitcoin whales, governments,...etc] took advantage of this correction by causing false news [SK ban, India ban, Facebook ban ...etc] that led to such a decline.
Strong corrections will slow the price rally soon.

[torch2121]

Maybe the reason why bitcoin drop down is because a big investor of Bitcoin, exchange his or hers bitcoin investment to fiat. Just a thought. 

[CryptoBry]

I dont think so. If you're talking about the real BTC whales/Libertarians then they would never give up their coins to give to Wall Street speculators. They are called HODLERS for a reason. Its rule everything or bust for them. What happened in the market was a natural cycle, the same as any market bubble.

There will always be so many theories when Bitcoin rise and likewise when Bitcoin go down. This time around I have read many speculations on why are are suffering some big loss already but just like you I believe that it is all about market dynamics affecting Bitcoin. The sentiment of the market is not so positive that is confidence on Bitcoin as a whole is affected. In the market, it is all about being bullish or bearish. Bitcoin has been the recipient of many bad news lately and many small good news have become insignificant. The government forces have been hampering the growth of Bitcoin and these forces will be here to stay. I still have to witness anything that can win against the government in the long run...except if there will be comprises along the way. I am hoping though that things will get better soon for Bitcoin.

[Stratobitz]

 

The correction was inevitable. And everyone who has any experience trading (anything from stocks to commodities to even real estate speculation) knew it would at some point tip and slide.

So with that said; I think that despite whatever news source may be reporting at this hour; the primary factor alone is: Market Correction.

The economy in general has been on a very long bull run, with the stock market on one of the longest bull markets in history. It as well will correct; market dynamics and greed will at some point set in, investors will begin to sell and take their profits, once this begins it cascades, and the profit taking transforms into a slippery slope of fear, with investors who need not even liquidate their positions selling off in whole in fearing they will lose it all. Which time has told us is ridiculous.

So with that said; it was coming. It had risen so high, people began to take their profits. This includes individual traders, large companies who accept BTC through merchant sales; and investors/traders; many of whom trade on margin, and highly leveraged levels.

Once BTC tipped from it's high at roughly $20,000, I believe the news had very little to do with the further decline. Now why do I say this?

Because Bitcoin has, for all it's existence, been in the limelight of bad press. From the Mt. Gox Scandal, to Silk Road, to the various exchanges which failed or "lost" coins amounting to huge sums of money; Bitcoin has always had it's share of bad press.

Secondly; Bitcoin has always faced increasing scrutiny; regulation; and outright banning, by various governments around the world. So the recent news of increased and/or tightened restrictions I think has less to do with the decline than one would really think.

The truth of the matter is that major news networks tend to ignore Bitcoin related stories. At times they will cover specific milestones or huge movements, but the day to day swings and changes in what is allowed here, or what happened there, are overlooked by completely other unrelated news.

A lot of this has to do with the fact that goes back to the old saying: "Any Press is Good Press".  The News Organizations know this. It's publicity, free publicity. With that said:

The companies and industries which vehemently oppose even the concept of Bitcoin the most are:  Financial Institutions.  Why?  Bitcoin fundamentally circumvents them. Bitcoin completely bypasses the banks, credit cards, and savings and trusts acting as the man in the middle (trusted third party), whom facilitate the nearly all commercial transactions both online and in brick and mortar stores between buyers and sellers, which of course they do for a fee, and they then charge interest, and late fees on.

These fees, generate obscene amounts of profit for them. And for that fee, they promise to safeguard your money, cover your transaction in the case of fraud, and so on.

Watch any major news network for 30 minutes, and count how many Bank, Credit Card, and Financial Service commercials are shown between the stories.  The financial establishments are in the top percentile of dollars spent on advertising, and the networks are in no hurry to upset their largest and highest paying customers.

This is why one, and we, as a community, should never expect major news organizations to give Bitcoin the credit it deserves. CNN, MSNBC, BBC, FOX NEWS, they are in the business of MAKING MONEY. And yes reporting on the news- the news that will attract the highest ratings, so their ratings and audience grows, and they can charge more per 15 spot or 30 spot of commercial air time.

This is why Bitcoin gets such a bad wrap. The news organizations biggest customers want them to make it clear to the world. Bitcoin is bad.

Now, as far as all of the news stories we read on sites that specifically cater to cryptocurrency news (I'll leave them unnamed)... They are still in their infancy, likely get a lot of their stories from writer/reporters who are simply covering the news. The news covering the news in a sense.

Which is why I don't think the correction has very much to do with anything but the fact that a correction was coming. Period.

Bitcoin has always had bad press. It's always been wrapped up in illegal activities. As if no one has ever bought drugs, guns, or run a ponzi scheme with actual money right? That only happens to those who dare get involved with cryptocurrencies.

The truth is Bitcoin went from practially pennies to $1250. Then it corrected to basically $350-$600.  There were lows below that, and highs above that, but thats where it traded for quite some time.

Now we've seen it go from $1000 to $20,000.  The correction is normal.

In the end, Bitcoin is here to stay. It will continue to grow. It will gain wider adoption. More, especially the younger generations will become increasingly interested in it from both a technology standpoint and a world changing commercial tool.

Everyone knows the Banks are crooked. How many financial scandals and fallouts have we seen in just the last two decades.

But right now not yet everyone knows Bitcoin for what it really is. That will take time. But it's proven to last this long, and now, it is here to stay. And with that said:

We have another Block Halving approaching in a little over 2 years. This will make the block reward drop again from 12.5 to 6.25 BTC.  This will be a huge component in how BTC is priced, because it will change the economics of mining full circle.

We will see further adoption. More people using it to send money and also as a investment.

We will see more altcoins, many will come and go, but some will grow to very large market caps, allowing for low cost transactions and better features and ease of use.

And with all that, Bitcoin will rise.

I think $20,000 was quite an accomplishment. I personally called the top at $15,000, and didn't think it would move much past that.

Bitcoin will surprise us, and the world. I don't see it at all unrealistic, to have a world where BTC is trading in the $100,000 or much higher range.

The question is when that will happen, and who will have been smart enough to hold.

Cheers!

Strato
 
 

[Stratobitz]

 
Had an afterthought from my previous post.

Since last Autumn, there have been a number of Forks, and Airdrops which were funded based on the current BTC Blockchain and addresses that held balances.

In regards to the correction; the supply of "currencies", while not BTC, but rather Bitcoin Cash, Bitcoin Gold, the Segwit Fork, and I believe there are others; added a lot of altcoin quantity which was quickly taken into the exchanges and either traded or held to trade.

It's possible that added to the sell off. As those who held large positions of any of those fork currencies would have had an equal sum in the new altcoin.

Thus by selling / trading to BTC; they ended up with a lot of extra Bitcoin, which they have spent since the high liquidating out.

I could be wrong (wouldn't be the first time); but it's my opinion the correction is slowing down, perhaps even the bottom is behind us.

Bitcoin is a volatile commodity. I'd be as surprised if it shot back up to $15,000, or higher, as I would if it dropped to $6000. Both seem completely realistic in terms of the swings we have seen many times past.

From the high of roughly $19,500; we bottomed yesterday around $7960. Thats a 60% drop.

Currently we've recovered back to $9300.

What interests me is Bitfinex just saw a massive 1 min tick sell off; 3 Million it appears sold in one large sell of, and the price didn't flinch. It's still going up. So theres definitely a bullish trend forming. If it's long term or short term, and how strong, only time will tell.

Cheers!

Strato
 

[millgates]

It make sense, considering bitcoin price is only depending on ask and bid then people who have large capital can affect the price of bitcoin. Most of bitcoin investors are speculators trader, it makes the volatility even higher. For me as bitcoin lover, the decreasing price of bitcoin today is not really big problem, I believe that bitcoin will be the number one choice for online transaction. So hold bitcoin is always profitable.

[syaripudin]

everyone will have an argument over their own thoughts about the bitcoin price movement for now. and personally I think the current bitcoin price decline is due to the rise in bitcoin prices some time ago which led to reporting on which. and that has led to a growing concern among governments that many of the few countries are barking about banning bitcoins. and of course this is very impact on the decline in investor interest that has taken a lot of profit so that the price of bitcoin declined again.

[Stratobitz]

everyone will have an argument over their own thoughts about the bitcoin price movement for now. and personally I think the current bitcoin price decline is due to the rise in bitcoin prices some time ago which led to reporting on which. and that has led to a growing concern among governments that many of the few countries are barking about banning bitcoins. and of course this is very impact on the decline in investor interest that has taken a lot of profit so that the price of bitcoin declined again.

I think the rise in attention of regulation by government agencies and taxing bodies; which has been well reported on, will likely have a far greater effect on institutional holders of BTC rather than everyday traders (even those with large holdings).  Large companies who either currently accept or use BTC in their sales pipeline, or have plans to in the future, would be the most affected by tighter regulation and restrictions on how BTC is used and transmitted.

As far as investors, and traders, I think the market is going to remain extremely strong. So much so I think this year we will see a huge boom in new altcoin developments; new technologies, better implementations of wallets on mobile devices, this all being done on a more community (even if highly funded) level; through the use of private investors and teams rolling out their own projects.

I think 2018 is going to be the year we see a lot of new offerings; while not through the ICO launch method; come into the playing field.

Buy the dips and hold. By 2019... well let's just say I'm very optimistic of where we will be. Bumps in the road aside.

Cheers!

Strato
 

[Protected101]

We cannot explain  the drop price of bitcoin now,my speculation maybe it is because of some bad news that can lead to government in other countries for get banned btc in their place,The news in the televisions that keep reminding to invest in bitcoin,or maybe some investors cash out their money because the believe in some news like that.But I do have trust to keep on back in increasing of price soon.

[Murloc]

What you've explained is a pure attempt to build a monopoly. In the free market in a long term all monopolies are supposed to fail. No matter how rich are those people they won't have enough money to buy too much bitcoins and hold their price for a long term. The wall street investors are usually too conservative to take such a big risks and they always have the attention of the financial regulators on them.

[Crytptohack]

My opinion: Over the last few years there have been a huge increase in hedge funds getting into the sector. In addition, large banks like Goldman Sachs with huge amounts of capital also speculated which drove up the prices.

When you add in various countries around the world all speculating on BTC, that pushed up the price even higher at the end of 2017. (BTC is also different b/c it trades 24/7 compared to the conventional markets which close, NYSE, London, Asia)

Most people that are new to investing have not seen the volatility with BTC or the cryptos in general, they only watched the price climb and wanted in. There is no asset class that ascends parabolically and continues or consolidates at the top, most will encounter a significant correction.

The hedge funds, large banks and the professional futures traders all knew that the price would correct, so they shorted BTC. So they are essentially working together making $ on the way down, it's collusion as they know what the other is doing and will continue working together. (That is until the price reaches a significant technical level)

Technically, the 20 dma crossed over the 50 dma which is a indication that the asset will be heading lower. It crossed below the 100 dma and the next significant level was the 200 dma which it touched yesterday. (The 200 dma was also at the same level as the Nov 2017 high around 7500)  When looking at the BTC chart, most of the large pullbacks have been to previous highs.

So in essence, BTC's volatility can make a lot of $$$ for professional traders, especially when they are using the futures contracts as they can get in and out very quickly. On a side note and my understanding is that the futures contracts are a derivative of BTC, so shorting the BTC futures doe not affect the BTC price.

I expect another major run-up with the BTC price and the pro traders will be going long, it's just a matter of time.

[RedzoneASE]

During last year we had one of the best years in Bitcoin <More than 800% increase in the price>

My theory is that institutional capital were invested to transfer ownership from true Bitcoiners to Wall Street speculators. They knew that most coins were held with private individuals and they wanted to take those coins from them to be able to shift the power to manipulate the coins value in the future.

They want to be the new Bitcoin whales. ^hmmmmm^

Why? Well, if you can manipulate the price, then you can increase profits with Bitcoin future contracts and even Bitcoin ETF's, when they come to the market.

They knew most private investors will sell at a specific point and it took up to 800% increase in the price to accomplish that. <for them, that is a few Billions now, but with the power to manipulate the price in the future, they would easily make up those losses>

What do you think? 

I could agree with it. Practically speaking corporate private individuals who holds more than 30% of overall total bitcoin could easily manipulate price. Market manipulation could be one of their strategy to put up more profit but this could be a factor to pull BTC down and build distrust to most of minor investor. This could lead BTC to decline in the near future.

[Vatimins]

During last year we had one of the best years in Bitcoin <More than 800% increase in the price>

My theory is that institutional capital were invested to transfer ownership from true Bitcoiners to Wall Street speculators. They knew that most coins were held with private individuals and they wanted to take those coins from them to be able to shift the power to manipulate the coins value in the future.

They want to be the new Bitcoin whales. ^hmmmmm^

Why? Well, if you can manipulate the price, then you can increase profits with Bitcoin future contracts and even Bitcoin ETF's, when they come to the market.

They knew most private investors will sell at a specific point and it took up to 800% increase in the price to accomplish that. <for them, that is a few Billions now, but with the power to manipulate the price in the future, they would easily make up those losses>

What do you think? 

     hmm.. Pretty interesting thought you have there op. I really think that this can be possible because the kind of people you are talking about are really capable of doing something like this since whether we admit it or not, a huge amount of money can really make these kind of things happen and more. And if you think about it, it is a pretty good plan to become even richer than from what they already are today. Although this might sound like something that is out of a movie, we really cannot deny the fact that these people can really do such a thing if they ever decided that they wanted to do so.

     But hey, we do not have any evidence to support this claim. Meaning, this is just gonna end up on the list of all the other speculations out there that are only claims without evidences. I am just entertaining the possibility, but I really am not buying this unless I can get my hands or eyes on some pretty solid evidences that can prove this claim.

[mamesso]

We cannot explain  the drop price of bitcoin now,my speculation maybe it is because of some bad news that can lead to government in other countries for get banned btc in their place,The news in the televisions that keep reminding to invest in bitcoin,or maybe some investors cash out their money because the believe in some news like that.But I do have trust to keep on back in increasing of price soon.

Yes precisely in ndia I get no clear information and some evidence, but BTC is span with issues.
issues have always resulted in panic sales, this makes the market unstable and BTC prices down followed by some other coins.

[Dissident991]

During last year we had one of the best years in Bitcoin <More than 800% increase in the price>

My theory is that institutional capital were invested to transfer ownership from true Bitcoiners to Wall Street speculators. They knew that most coins were held with private individuals and they wanted to take those coins from them to be able to shift the power to manipulate the coins value in the future.

They want to be the new Bitcoin whales. ^hmmmmm^

Why? Well, if you can manipulate the price, then you can increase profits with Bitcoin future contracts and even Bitcoin ETF's, when they come to the market.

They knew most private investors will sell at a specific point and it took up to 800% increase in the price to accomplish that. <for them, that is a few Billions now, but with the power to manipulate the price in the future, they would easily make up those losses>

What do you think? 

It can be truth, because prices of all cryptos dropped too fast against a background of all this negative news. It seems like someone want to buy low.

[Sports Bettor]

What happened in the market was a natural cycle, the same as any market bubble.

I agree. Prices go up and down naturally. I like to think of them as waves. But gradually increasing.