BTC Mysterious instant drop?

[snipie]

of course what creates all this is the big whale, they can easily regulate the market. after yesterday they made a fairly high increase, now they make a very remarkable decline. wtf

Big whales and low ask vs demand are the two main problems not letting bitcoin price rise as it did in 2017.
Loosing more than 80% of the maximum value made people afraid from investing in bitcoin and altcoins.

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[basty03]

What caused this? How can the price be so volatile? Who is behind the market for real?

Well it's not surprising that kind of chart since bitcoin down last year we see it this kind of chart every day. It's our decision if we still hodl or still manage our funds even we see the loses. Im hoping that everything will alright again.

[figmentofmyass]

The big miners are dumping their coins, to pay for electricity costs.

more specifically, they're shorting. this is what conventional metal miners and farmers do as well. in fact, it's the whole reason physically settled futures markets exist at all---so producers can lock in prices that cover their costs, even if it means missing speculative gains.

smart miners have definitely been hedging their operations by shorting over the past 6-12 months.

Also, too many altcoins, which are dragging the price down. Most altcoins are scams, but nobody cares in turning them illegal, governments only focus in bitcoin.

It became a snowball.

i think it's typical market deflation. scams or not, altcoins helped to pump the market up. now they're dragging it down.

[b3j0]

of course what creates all this is the big whale, they can easily regulate the market. after yesterday they made a fairly high increase, now they make a very remarkable decline. wtf

Big whales and low ask vs demand are the two main problems not letting bitcoin price rise as it did in 2017.
Loosing more than 80% of the maximum value made people afraid from investing in bitcoin and altcoins.

if this large whale continues to dump investor interest in bitcoin will decrease, and this also results in decreased demand for bitcoin. I don't know the reason they did that.

[magneto]

With the market sentiment remaining extremely bearish, not all dumps have to be rational.

While people may be inclined to pairing every single market movement to a single piece of news, it's rarely what actually happens. Markets doesn't always act rationally. If it does, prices wouldn't move based on bull/bear cycles, but rather follow the long term averages.

It's not rare to see at all unexplained short term corrections, which could be a result of an early investor dumping their position, or simply because traders and investors panic dumping as a result of natural market movements due to the current fear and uncertainty within the bitcoin market.

It's honestly quite useless in terms of investing in the long run to pinpoint these events with other events. Bitcoin's decentralisation makes it extremely volatile, and this reflects within these short term price swings. It will get better in the future as more adopters enter the market, though.

[bengsabeng]

This is because there are investors who sell a lot of bitcoin, which causes the price of bitcoin to drop suddenly. there are two possibilities that can occur, he wants to play the price or he wants to stop investing.

[Ronyx]

Indeed, it is confusing, but because bitcoin is volatile, it becomes reasonable with the decline, and because of fluctuations, you must be careful when you decide to buy or sell it.

[crzy]

This is because there are investors who sell a lot of bitcoin, which causes the price of bitcoin to drop suddenly. there are two possibilities that can occur, he wants to play the price or he wants to stop investing.

For sure they are trying to manipulate the price, and this can be the main reason why it drops easily. BTC is a big coin, but behind this great technology there’s also a big people who keeps on moving the price. I still want to hold my bitcoin, even though a lot of manipulators are in the market now, because in time they will have no more choice but to pump the price and get profit.

[1Referee]

Bitcoin's decentralisation makes it extremely volatile, and this reflects within these short term price swings. It will get better in the future as more adopters enter the market, though.

Not sure what decentralization has to do with this, because the coins are being held on centralized exchanges and from there dumped to tank the price.

Volatility is the direct result of illiquid orderbooks, which has been a problem for years, and I don't see it change unless legacy players run spot exchanges and from there attract traders who do trust them with potentially hundreds of millions. Coinbase as most regulated exchange has difficulties attracting capital, so imagine how that is for the exchange below Coinbase.

It's clear what needs to happen in order to have Bitcoin become a more liquid market. More legacy players, Bakkt could be a decent start.

[figmentofmyass]

It's clear what needs to happen in order to have Bitcoin become a more liquid market. More legacy players, Bakkt could be a decent start.

be careful what you wish for. if bakkt starts becoming dominant re: liquidity and therefore starts leading the spot market, rehypothecation and commingling by bakkt's central counterparty could essentially create fractional reserve claims to vaulted bitcoins. in theory, that means bakkt might artificially keep bitcoin prices price down.

it doesn't have to be insidious or intentional, but it can happen just by virtue of how bookkeeping works in collateral-based wall street markets.

[chulos]

What is behind these price breaks and high volatility is hard to answer. In my view, investors have begun to sell their positions whenever the price has risen slightly,
but this leads to such a price drop that damages the market more than it helps. For some, it's a good chance to re-buy cheaper and then sell more expensive.

[elloco4ever]

Yes the downfall was never expected by anyone in this forum, as there was a hot topic going on with ethereum hardfork and bakkt launch. I was wondering for a pump of BTC as I was suppose to exchange few coin as I was in need of some cash but I lost nearly 10$ in a quick time.

[gabbie2010]

This is the second time the price will drop to $3k6+ and ranges around that support zone for a long time even now which I strongly belief that some sorts of manipulation is ongoing underground however the bulls will surely take over and push up the price northward hopefully before the end of January.

[South Park]

snip

What caused this? How can the price be so volatile? Who is behind the market for real?

The fall is not mysterious at all the market just dumped very hard probably because a whale decided to create that dump, the same happened to ethereum, in just 30 minutes the price crashed in a similar way, this is not rare in this market and if you want to hold your coins or to be a trader you will need to get used to it but if you cannot then it could be better to look for other markets with lower volatility.

[gabmen]

snip

What caused this? How can the price be so volatile? Who is behind the market for real?

The fall is not mysterious at all the market just dumped very hard probably because a whale decided to create that dump, the same happened to ethereum, in just 30 minutes the price crashed in a similar way, this is not rare in this market and if you want to hold your coins or to be a trader you will need to get used to it but if you cannot then it could be better to look for other markets with lower volatility.

And it happens all the time. An instant drop is even more often than a good pump lol. It's no mystery and long time traders know all too well that there's nothing special about sudden dumps or pumps.