Re: Mt. Gox Postpones Sell-off of 166,000 Bitcoin Until September
Nowadays bitcoin market cap is 155Bln, and was more a few weeks ago
400Mln represents 0.26% of it
It didn't has much impact on the price
That is simple and effective mathematic logic...
400Mln represents 0.26% of it
It didn't has much impact on the price
That is simple and effective mathematic logic...
not that simple. A sudden influx of 400mln causes many weak hands to fold, which increases the amount. This effect keeps on perpetuating itself, dragging the price down.
bitcoin is know for is high volatility, it is usual for it to do +/- 5% moves in less than one hour. We see this several times in a day
let's say bitcoin is at 9500$ and drop 0.26%, this represent 25$
now bitcoin would be at 9475$
this has almost no effect on the price
0.26% is def not what happened. When it drops 0.26% in less than a second, bots freak out and start selling too. Now you're looking at 2% in a minute, causing weak hands to fold. Now you're looking at 5% gone.