Its a bear market. The price moved from ~100 to ~1100 in the fall of 2013. The price action for the past 10 months is a correction of that move. After an 11x price increase, a retracement of 70% is perfectly normal market behavior. This is just the bitcoin boom and bust market cycle.
A larger holder did sell 30000 coins yesterday at $300 each. (And in fact, did so in a much less sophisticated way than normal—he simply stuck 30000 coins out there at a price of $300, and then just sat there. A more sophisticated trader selling in smaller increments could have gotten more money for them). This action did control the price of bitcoin for a number of hours. It was one small piece of the decline from $1100 in Dec 2013 to $300 now, but obviously it wasn’t the main driver.
There is nothing special about the decline in bitcoin from $1100 to $300. It is merely the result of the fact that the price previously rose from $100 to $1100 in a short time. This is how markets work. The price does not move smoothly in straight lines. It moves three steps forward and two back. It overshoots massively to the upside and to the downside.
It is very hard to tell exactly where the top and where the bottom are going to be. Back last november, it would have been hard to guess whether the top would be at $500, or $1100 as it was, or $2000. And its hard to guess the bottom now. You might have thought it was done falling when it was at $500. It might be done now. Or it might drop to $200 or lower. (You can make a pretty decent case for $275 on sunday morning having been the absolute low however, based on the fact that the volume of trading was enormous, and the extreme distance that the price moved away from the moving average. Of course, it is possible that even larger volume and an even more extreme drop could be coming. We will not be able to say for sure what the bottom was until well after the fact).
Its a bear market. The price moved from ~100 to ~1100 in the fall of 2013. The price action for the past 10 months is a correction of that move. After an 11x price increase, a retracement of 70% is perfectly normal market behavior. This is just the bitcoin boom and bust market cycle.
A larger holder did sell 30000 coins yesterday at $300 each. (And in fact, did so in a much less sophisticated way than normal—he simply stuck 30000 coins out there at a price of $300, and then just sat there. A more sophisticated trader selling in smaller increments could have gotten more money for them). This action did control the price of bitcoin for a number of hours. It was one small piece of the decline from $1100 in Dec 2013 to $300 now, but obviously it wasn’t the main driver.
There is nothing special about the decline in bitcoin from $1100 to $300. It is merely the result of the fact that the price previously rose from $100 to $1100 in a short time. This is how markets work. The price does not move smoothly in straight lines. It moves three steps forward and two back. It overshoots massively to the upside and to the downside.
It is very hard to tell exactly where the top and where the bottom are going to be. Back last november, it would have been hard to guess whether the top would be at $500, or $1100 as it was, or $2000. And its hard to guess the bottom now. You might have thought it was done falling when it was at $500. It might be done now. Or it might drop to $200 or lower. (You can make a pretty decent case for $275 on sunday morning having been the absolute low however, based on the fact that the volume of trading was enormous, and the extreme distance that the price moved away from the moving average. Of course, it is possible that even larger volume and an even more extreme drop could be coming. We will not be able to say for sure what the bottom was until well after the fact).