Interesting theory from financial daily City AM:
In the case of why Bitcoin fell 23%, this can be put down to two primary reasons. F2Pool Bitcoin mining pool sent 3633 Bitcoin in a single transaction out of their bitcoin mining wallet and right onto the exchanges. They then proceeded to dump all of this bitcoin in a very short period of time. It is unknown if F2pool were also shorting Bitcoin to capitalise on the price falling. As the price of Bitcoin fell, there are so many new people in the market and new money is easily panicked so they then start selling for a loss and so you end up with huge amounts of Bitcoin flooding towards exchanges. This then snowballs into a catastrophic market move triggered by just one Bitcoin miner.
The story of F2Pool dumping might not be one, however, of unsophisticated investors selling bitcoin to pay their bills. I believe it is more likely that F2Pool have been dumping Bitcoin in order to stop the price of Bitcoin going euphoric and ending the bullrun. Every time Bitcoin has turned euphoric on the NUPL (Net Unrealised Profit & Loss) indicator, a bear market has followed shortly after, so this is something to consider. The recent drop in Bitcoin price may actually be intended to delay market euphoria and extend the bullrun.
This theory actually lines up very well with what is going on in the market because on the cards at the moment Michael Saylor is about to buy $1 billion of Bitcoin over the next few days. Of course if he were to buy when Bitcoin was peaking at $58,000 then he would send the bull market into a euphoria, but with F2Pool crushing the spirit of crypto investors, his buy order will be easy to fill and when he sends out confirmation of its completion, investors in crypto have historically reacted very positively to such news.https://www.cityam.com/bitcoin-price-crashed-here-is-what-comes-next/