So, as many of you are painfully aware, bitcoin crashed around 30% over a couple of days, reportedly due to regulatory pressures in Asia, and a potential ban in China due to energy wastage and tax evasion risks etc. Reports suggest that China contributes as much as 70% of the worldwide hashing power, and yet we only saw a 30% drop.
Source:
Report: PBoC Quashes Bitcoin Mining Ban Rumor in ChinaFurthermore, we saw 30%+ drops in other cryptos, even unminable, non-decentralized ones. So, conspiracy theorists, why do you think bitcoin
really suffers these sporadic crashes, could it be large-scale market manipulation? Or is it simply FUD leading to a wide-spread panic selling?
I think bitcoin crashes occasionally due to the economic status of a country. If the economy of a certain country is healthy a lot of new investors would pursue their interest in bitcoin that might affect the demand in the currency that later on cause an increase in its price. On the contrary, when the economy is sick or low, the probability of a certain person to engage towards bitcoin is cut-off. They would rather use the money for their daily needs due to high price in the marketplaces than starve just to invest in it.