First off, there's something that most traders don't understand. There are private groups/individuals that are able to purchase large amounts of Bitcoin off the books. These Bitcoin never reach a ledger (ie. exchanges, etc), and due to this such purchases don't affect the market initially. However, the whole point of these larger traders purchasing such large amount of coins (think tens of thousands if not hundreds of thousands of BTC at a time) is to obviously make profit off them. In doing so, it allows them to essentially manipulate the markets. Of course, its not possible to manipulate it enough to cause an immediate crash or incline, but there are enough coins being sold out there in such a manner to where the investors are able to use the purchased BTC to their advantage by shorting and what have you. From what I'm seeing through my research, this is happening at an unprecedented rate at the moment which is reflected in the falling price of BTC. Essentially, the rich are getting richer and as a result the rest of us are taking the fall for it.
Its the ultimate pump/dump IMO, and until the amount of unregulated coins are decreased from being purchased among these large traders, BTC will continue to fall like we're seeing. If you don't believe me, there is PROOF of such actions going on even despite the fact that you cannot see their actions on markets. All you have to do is watch the transactions on the blockchain for a day (especially a day like today where BTC is falling), and you'll see exactly what I'm talking about. What this means for us smaller traders is that we need to be smart and try to ride the waves of these whales if possible. I've been trying myself, but its very difficult as they're always one step ahead of the pack given that they are the ones controlling the direction of the waves. There are still ways to make money off BTC even in a falling market, but to do so you have to be very smart about how you invest and know when to buy and when to sell. This is obviously something I'm still trying to figure out myself. Anyhow, I figured I'd at least throw this out there since I don't think most people know about this and it is very important to have in your knowledge box if you're involved with bitcoin. This is the downside to a decentralized currency, is that there always WILL be unregulated purchases/sales, hence the reason why cryptocurrency is so volatile compared to regulated fiat currency. This is also why governments are so scared of cryptocurrency. Hopefully, you learned something from my post and good luck to everyone here.
