Hi folks.
Just sharing this interesting views of a poster on reddit:
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
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
Doubt that's the real cause. Real cause is most likely still a reaction to the newly imposed government regualtions, especially those of China and Indonesia. It does not affect most of us, but there is no shortage of bitcoin investors in both countries and it could be a problem for them if they don't get rid of their bitcoins quickly for their local currencies.
This initial dump then triggers more dumpers, and in the end there is absolutely no rational actors left anymore on the sell side, and even some long term holders are considering to lessen their bitcoin bags.
But hey, this has to happen sooner or later, and it's almost become a pattern for bitcoin(borrowed from another thread):
