Recently there has been a lot of FUD about Binance hack and Mt Gox scandal but are these factors responsible for the last bitcoin crashing or other effects?
I admire the author's analysis and would like to quote "
The real reasons
So, what’s causing this dip? Two things, public interest and traders.
Let’s look at things from a wider perspective. Those who have been around cryptocurrencies for a while now know that Bitcoin’s price is tightly connected to its hype. I’m not even talking about the subjacent technology, I’m talking about price.
This leads us to the first reason.
Public interest
I hope we’re all aware that during the holidays Bitcoin was THE topic for most people. Everyday new all-time highs were broken and even in my small country Portugal, local newspapers and TV reporters were doing exclusives to talk about Bitcoin, and one thing I am sure, Portugal wasn’t the only one doing it, which led to the “holiday hype”.
Once the “holiday money” was spent and people started to buckle up and tighten expenses for 2018, which is a common behavior, public interest regarding Bitcoin fell, and it fell even more than you think.
The traders
On the other hand we have the traders, and I’m not talking about your average Joe trader that tries to predict the market. I’m talking about the whales of the crypto-verse, the ones who consistently make money off this market and understand it better than you think.
These traders play with the FUD that is given to them in a tremendously efficient way, the sell walls. These traders play with their orders very aggressively and, due to the volume that they handle, they cause panic which leads to these sudden dips.
The Mt. Gox scandal and the Binance hack only serves as an excuse for them to simulate panic sells which leads the people with weak guts to sell which sinks the market even further, enabling these whale traders to increase their position on their favorite coins so they can sell them at the next hype. "
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