Hi folks.
Just sharing this interesting views of a poster on reddit:
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 chaosI think that despite all of the valid reasons for the crash the overwhelming and definitive one is manipulation. Even with all of the negative news the crash we experienced should not have been so great. Many large holders etc can manipulate the situation to their advantage and crash the market beyond the point that seemed correct, so as to benefit themselves.