The stability on DOGE the last 48 hours has been impressive considering what was going on with BTC (which I think was caused by Alibaba IPO).
How did the alibaba IPO drop the BTC price so drastically?
This is the first I've heard if this and it makes no sense.
Thanks!
This is off topic for DOGE but yeah it's really obvious and I wasn't the only person thinking the same.
http://www.coindesk.com/downward-pressure-bitcoin-price-declines-to-near-400/Read the top comment after the article. The one with 24 upvotes indicating many people agree with it.
It's psychology. BTC price was already dropping for days and got a push from Alibaba.
A lot of people assumed (maybe wrongly) that Alibaba would cause other assets to drop in value because people wanted to sell assets to buy Alibaba.
So they started actually selling - even if they were not buying Alibaba. Including BTC.
If you think something is going down in price then you sell anyway and buy back in at low.
If enough people think the same (which they clearly do) then they sell BTC and the price crashes.
Which it did. Doesn't matter if people really were selling or not to buy Alibaba. They only had to think others were.
Then they really did start selling BTC out of fear.
Maybe whale's used Alibaba IPO timing to make it look like there was a panic dump on the event so they could buy cheaper.
All that mattered was that it looked like to enough people that it caused a REAL panic dump.
Which is what happened in the end.
This is how markets work every day.
Find something that can be used to create fear of a price drop -- and then start the chain reaction.
On topic -- tick tock.. tick tock
http://www.csullender.com/dogecoin/11 days to go