The price of Bitcoin has dropped significantly in the last few days, and all we heard was rumblings about what may have been the reason for such devaluation. In this post we show what may be the real reasons for such an event, which many say is "the final death of Bitcoin"
Although prices have not been expected by many, the truth is that if we do a basic fundamental analysis, the technology Blockchain and Bitcoin had a good year. So do not confuse "Value with Price".
The January postponement of the launch of the Bakkt platform, a company with institutional credentials supported by NYSE, Microsoft and Starbucks, came as one of the first exchange platforms to negotiate Bitcoins for US dollars and with the option to offer its customers possibility of acquiring future daily contracts of Bitcoin.
The OTC trading of institutional investors in the Cryptomannan market, the OTC buying system is a private market where foreign exchange houses do not participate and large investors can negotiate directly with the mining companies, not to affect the price. Such negotiation enables large institutions to accumulate a large amount of Bitcoin, enough to manipulate the market.
The uncertainties that started a downward movement with the BCH bifurcation and the fall in price caused a panic among retail investors, who began selling their Crypto-Coins for fear of even greater losses. And that is where, once again, big investors could take advantage of that fear, applying the maxim: "Buy cheap from the pessimists and sell expensive to the optimists."
Alexander Aleshin COO of the software development company neuronet, which conducts research in the field of commercial neural networks, made the following statement:
"The recent decline of Bitcoin is speculation technologically calculated by the holder of a large capital. There are a number of large financial companies interested in accumulating a certain amount of funds to pressure the market and eventually buy those assets at lower prices. We believe the crypto-currency market will continue to grow, but at the moment it was essential that several large investors reduce prices for certain forecast indicators. "
So, what is the real motive that would fit in the image, which was formed systematically in 2018? The only real explanation is: negatively impact the market.
And starting from this hypothesis, it is simple to understand the institutional way of operating. For example, start an accumulation of 100,000 BTC at a price of $ 6,500, then sell for $ 6,400 having an apparent temporary loss of $ 10 million, with this settlement holding the market, waiting and buying at falling prices , reinvesting the same starting capital and with its loss, about $ 640 million, using the OTC market, of course (not to move the price) and thus acquire the succulent amount of approximately 150,000 BTC, instead of the initial 100,000 BTCs and thus thus accumulated more BTC, for when to start Bakkt.
Banks are shutting down accounts of Bitcoin companies in Singapore
According to the managing partner of the law firm and also a member of the Moscow Bar Association, Maria AGRANOVSKAYA, many people buy criptomoedas at a reduced price using this strategy.
"There are a number of points of view on this subject, but one thing is obvious: there is no reason for such a serious fall today. Who benefits? Great players can make lots of money from it. "
The depreciation in the price of Crypto-Coins has made people forget the launch of a fully regulated platform that will bring more liquidity to the market and it seems to make the price skyrocket, the long-awaited Bakkt platform.
What happened to the price of Bitcoin at the lowest price of the year was the manipulation of influential figures in the market, or was insider trading by someone with insider information about postponing the Bakkt platform, designed specifically for institutional investors?
It is very suspicious the fall in prices of crypto-coins just before Bakkt announce the postponement of the launch of the platform scheduled for December 12, 2018 to early 2019. Perhaps it is just a theory. But we must not forget that these institutions have all the fiduciary capacity and liquidity to move the market.
The main factor is to understand that Bitcoin was not created for market speculation or wars between egos and hashs. It is a historical event about technology and innovation created within an ecosystem called Blockchain. And all the arguments about the price of Bitcoin and its phenomenon of prices are nothing more than "a bet on the exchange of currency by crypto-coins". Link to the original whitepaper created by Satoshi Nakamoto.
We should never confuse "Value with Price" because they are not the same. And this effect is not much different from sports betting. A crypto-economist named Yevgeny ROMANENKO, made the following statement:
"Bitcoin does not care if it will or will not fall, the main point is that its" heart beats ", performing mathematical functions, meaning that everything is fine. And those who pay attention only to price and not value, are just looking for nothing more than that, they are just amateurs who hit the market by accident. "
That is why we must never forget the true value of Bitcoin:
"The essence of Bitcoin is to give individuals sovereignty and freedom over their money to control their wealth."
my opinion: peoples' sentiment, and overall bear market.
Some people predicted such long bear markets (Tone Vays, Richard Heart).
If you look at yesterday's video Ivan on tech and Richard Heart, mr.Heart summarises clearly that this all bubble burst was inevitable, as so many scam projects are around the space, and so many people who just got investors' money and not doing anything with the projects, or even worse some people used the hype momentum and attracted capital in form of ICOs and just"living comfortable life now", without developing anything useful, just little tweaks in their projects.
I totally believe your point of view , @ansisltd . But do you believe that bitcoin is a bubble?
"To make a nice soup: you need it to bubble for a while"
So the whole definition of bubble is being misinterpreted, for example Property was in a bubble = still there, still buying / selling. Internet companies were in bubble = internet giants are stronger than ever, after some weak projects collapsed stronger became more stronger. Next: banks were in bubble with their credit lending and credit swaps = look at them today, their balance sheets are stronger than ever. Their capital is larger than ever.
So is Bitcoin in a bubble? I think it is a cycle when some noise has to be removed, and then the real quality projects will thrive.
What beautiful text @ansisltd, that's it. I agree with you, my friend.
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