Thank god for those buyers!

[JTrain_51]

So we were at 1150 per btc today and we had a meduim drop to 990 or something around that area.

I say thank god to buyers because we are now back up to 1050 so it looks like we are staying at the 4 digits!

My thoughts on the drop :

There may be several reasons why it dropped ( price manipulation and people who worry and sold ) I honestly think its because the long weekend is here and people are spending time with there loved ones and not with bitcoin


Please post your thoughts on the 100 dollar drop

[melacs]

Has anyone considered that it might actually be the market growing that is causing the drop?

The assumption that something's price will go up if the market grows is legit, but is it really true for bitcoin in the short run?

Suppose I have a bitcoin and I do not spend it. The bitcoin has a value of the current price of bitcoin, let's say X. If a new person buys another bitcoin, the price will go up.

Now suppose I spend the bitcoin for a service. The merchant takes my coin and exchanges it for X at an exchange. This coin is bought by the other person and the price stays the same (X).

Unless I buy in the same amount of coin I had, I basically cashed out. This means that even though publicity and other factors are at hand, buying bitcoin to spend it immediately and when it is immediately turned back into fiat is a null operation. The market grows the longer the bitcoin are being held. The price will start to go up if people start to stock bitcoins from purchases. Or if people buy bitcoins and stock them without immediately buying.

This means that on every big sale day (such as black friday) the price is most likely to drop due to vendors cashing out.

[JTrain_51]

Ive considered it
I know the market is growing but there are price manipulators out there

[pjviitas]

Anyone who tries to manipulate the price of bitcoin will surely fail...anyone who tries to speculate in bitcoin will surely fail.

Bitcoins volatility is its strength as far as manipulation and speculation is concerned.

Unlike fiat currencies, there is absolutely nothing that could stop bitcoin from going to zero in the next 5 minutes.

With that being said, it could bounce back up and be $2000 in the next 5 minutes after that.

Unlike legal tender, there are no laws in place to force an exchange to redeem bitcoin at any price.

[tutkarz]

no need to worry too much. Even if price will fall, it will recover. If you want to not regret anything then don't panic when price drops, never sell with a loss and be patient.

[Crazy]

If you want to know what'll happen with US markets, just watch China. They've retested 7000 CNY support, fell through, found support at 6500, aren't reclaiming 7000 that nicely, and thus will probably test 6500 again by the end of their day.