Quote from: youngwallst on October 08, 2014, 04:38:21 PM

Quote from: 51percemt on October 08, 2014, 04:13:15 AM

Quote from: youngwallst on October 07, 2014, 02:48:39 PM

Quote from: ytr8 on September 27, 2014, 12:29:00 PM

Bitcoin price is always so strange, two days ago also once close to $390, Paypal a message about Paypal made the price get up to $460, Then slowly decline. This lets the human mind is always anxious ah, buy or sell it ?Next, the price is up is down?No one can give correct answers.

I personally think that corporations that are accepting need to turn it over back into fiat (because thats how they ultimately look at their bottom lines), miners needing to cover their costs, various reports of very early adopters converting large sums, & regulatory uncertainty is the reason for the extreme volatility. If you're bullish bitcoin, this shouldn't matter much. Considering bitcoin went parabolic last year, this type of retrace amid the black swans that I just mentioned is natural. From a technical standpoint you'd be a bit concerned maybe in the near term, possibly. Real price expansion will happen once we work thru alot of transitory variables (most mentioned above) and more mainstream aggregate demand occurs along with merchant adoption to support the supply/demand imbalances we are seeing being reflected in price as volatility. Hope that helps!

Corporations need to convert their bitcion back to fiat because they have nothing to do with it. Corporations are not investment vehicles and will generally not hold an asset for an investment (except extremely safe ones like US treasuries) unless it relates directly to their business (for example a warehouse or their inventory). Until we see more B2B bitcoin transactions corporations will continue to sell their bitcoin quickly (likely causing large spikes in supply), however as we see more b2b transactions this will slow down and eventually stop

While I understand the point you're trying to make, it's moot because OP asked what factors were dropping price and creating volatility. As Im sure you already know, when sell orders are larger than buy orders it creates downward pressure on price... As far as the corps having lack of desire to conduct B2B transactions in Bitcoin, I agree until we see larger willingness from said corps to utilize their btc in a way that supports price, it will continue to be volatile.

Part of the selling pressure is because of large merchants selling the bitcoin they receive from their customers. If they were to engage in b2b transactions then this selling pressure would be reduced