Explanation for Bitcoin Price Movements - Cryptocurrency Reporters - A Light To Cryptocurrency World

Sunday, 1 April 2018

Explanation for Bitcoin Price Movements


Explanation for Bitcoin Price MovementsWhy is the price of Bitcoin alternating between sideways movements and falling?Think of all the people sitting on shitloads of bitcoins (mined/accumulated from when it was cheap, back when e.g. 1000 bitcoins was just barely worth thinking about). Put yourself in their shoes. If you have a lot of bitcoins, you don't want risk, you're not looking for an "investment," you simply want to turn your bitcoins into (relatively) stable USD as efficiently as possible so you go from being rich on paper to being actually rich.For these people, selling isn't a matter of clicking "sell" on some trading platform because it would totally crash the price. That's the original definition of what a whale is: someone who has so much invested that it's difficult for them to make the trades they want without affecting the market.So it's a question of what strategy these people will want to use to get as much value as possible out of their bitcoins. And the answer is: every time it seems like bitcoin stabilizes or climbs a bit, take the opportunity to sell as much as you can.End result? What we see now, sideways movements with a gradual, inevitable drop in price. Although when everyone realizes this, it's quite likely the price will completely crash. via /r/Bitcoin https://ift.tt/2GLrw1K

Why is the price of Bitcoin alternating between sideways movements and falling?

Think of all the people sitting on shitloads of bitcoins (mined/accumulated from when it was cheap, back when e.g. 1000 bitcoins was just barely worth thinking about). Put yourself in their shoes. If you have a lot of bitcoins, you don't want risk, you're not looking for an "investment," you simply want to turn your bitcoins into (relatively) stable USD as efficiently as possible so you go from being rich on paper to being actually rich.

For these people, selling isn't a matter of clicking "sell" on some trading platform because it would totally crash the price. That's the original definition of what a whale is: someone who has so much invested that it's difficult for them to make the trades they want without affecting the market.

So it's a question of what strategy these people will want to use to get as much value as possible out of their bitcoins. And the answer is: every time it seems like bitcoin stabilizes or climbs a bit, take the opportunity to sell as much as you can.

End result? What we see now, sideways movements with a gradual, inevitable drop in price. Although when everyone realizes this, it's quite likely the price will completely crash.

Why is the price of Bitcoin alternating between sideways movements and falling?Think of all the people sitting on shitloads of bitcoins (mined/accumulated from when it was cheap, back when e.g. 1000 bitcoins was just barely worth thinking about). Put yourself in their shoes. If you have a lot of bitcoins, you don't want risk, you're not looking for an "investment," you simply want to turn your bitcoins into (relatively) stable USD as efficiently as possible so you go from being rich on paper to being actually rich.For these people, selling isn't a matter of clicking "sell" on some trading platform because it would totally crash the price. That's the original definition of what a whale is: someone who has so much invested that it's difficult for them to make the trades they want without affecting the market.So it's a question of what strategy these people will want to use to get as much value as possible out of their bitcoins. And the answer is: every time it seems like bitcoin stabilizes or climbs a bit, take the opportunity to sell as much as you can.End result? What we see now, sideways movements with a gradual, inevitable drop in price. Although when everyone realizes this, it's quite likely the price will completely crash.

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