Quote from: Perambulator on October 03, 2014, 05:11:33 PM

Quote from: coindetective on October 03, 2014, 04:52:06 PM

I really do not understand who are these morons who dump such amounts every few hours. By now, all weak hands should be out of the game so the ones who sell are only large, probably Chinese, farmers dumping every day to recover their costs. I would go and dismantle their farms with a fork if I could. One really needs to be DUMB to sell at these prices. But I mean really dumb.

I agree, but personally I think it is a combination of margin traders, bots, and sheep.

If you keep an eye on somewhere such as Kraken for Euro selling, every now and then you will see a bot 'plink' 0.005 BTC, or sometimes 0.008, at a point below the market price. It will do so several times, which causes the 'last sold price' on Kraken, and the charts on sites such as BitCoinity to show a downward trend. The sheep don't look at the volume; you see some panicking and dumping whatever little amount they have, as they expect another flash crash, which is sometimes caused by:

Margin traders with positions shorting the market. They either cause a market crash through margin calls, which ironically fulfill there expectations after their position is closed, or they are big enough to drip feed the downward trend to to the sheep, in order to make it happen.

The rest is down to panic - yesterday at most points we saw around 2% drops on the $ and Yuan markets, while over 3.5% on Kraken.

Incidentally, Kraken has had several outages over the last two days, the last one about an hour ago, with Cloud Flare popping up a notice that their website was unavailable, then the live Kraken website stating that information was not available, and god knows what happening to trades, and reporting of trades and volume. Not a good place to be, when you are trying to trade in this market.

Still, any seller who purchased in the last year and selling now is LOSING money. Bots or no bots, somebody needs to opt to sell and this means this person is either weak handed or a total MORON. All this under condition BTC sold are purchased at one point and not mined. If they are mined, then take a look at my previous comment.