Post
Topic
Board Speculation
Theory on the real cause of today's chaos
by
junoreactor
on 18/01/2018, 09:31:42 UTC
Hi folks.
Just sharing this interesting views of a poster on reddit:

Quote
The cause of today's chaos is likely large hedge funds using expiring BTC futures contracts as safety nets to exploit the only sure-thing in this market: a large amount of new/overextended investors who are easily moved to panic sell during a flash-crash.

It is likely that such drop is clearly caused by manipulation indeed, I find this theory interesting.
One can also notice that every year since 2015 there is always a drop in January and this may be also due to Chinese new year. This is also possible but I don't believe small holders will cause such drop, so the hedge funds theory is more likely.

You can read more here > theory on the real cause of today's chaos