Topic: Bitcoin is not a stock. (Read 806 times)
@TERA +1
There's still a lot of ''dumb money'' in bitcoin, which makes trading it relatively easy compared to traditional financial instruments. A lot of noobs trade on news, while all the big boys have TA strategies.
Bitcoin is a transnational currency. It is not a stock. It does not follow news as if news is the only thing that moves the price. It follows supply and demand. There are large market forces at play that have nothing to do with news events. When there are more coins going in than fiat, then it goes down. When there is more fiat going in than coins, then it goes up. Whenever there is a bad news event like Silk Road but the price recovers, people like to say "oh honey badger dont care". Well guess what - it's the same thing with GOOD news events - If the price is in a downtrend then the price will "recover" from the good news events and continue its trend down. Bitcoin runs a boom/bust/hype cycle about every 6 months and there is always a capitulation regardless of whatever news events are going on. The whales behind the scenes pushing hundreds of thousands of coins and millions of dollars are much more powerful than the people reacting to news events. So please guys every time there is a drop or a rise - stop saying "omg what is the news?". It looks silly.
but dont you think it's speculative nature plays a role in that? the price is not high because of genuine demand, yet.
I want to add this also:
Some might argue with the significance of my TA but my point is that nobody should be suprised by a drop that started so slowly and had so many warning signs, or think there was some event today that suddenly drove it. "What is the news"? How about "what was the news two weeks ago"?
Bitcoin is a transnational currency. It is not a stock. It does not follow news as if news is the only thing that moves the price. It follows supply and demand. There are large market forces at play that have nothing to do with news events. When there are more coins going in than fiat, then it goes down. When there is more fiat going in than coins, then it goes up. Whenever there is a bad news event like Silk Road but the price recovers, people like to say "oh honey badger dont care". Well guess what - it's the same thing with GOOD news events - If the price is in a downtrend then the price will "recover" from the good news events and continue its trend down. Bitcoin runs a boom/bust/hype cycle about every 6 months and there is always a capitulation regardless of whatever news events are going on. The whales behind the scenes pushing hundreds of thousands of coins and millions of dollars are much more powerful than the people reacting to news events. So please guys every time there is a drop or a rise - stop saying "omg what is the news?". It looks silly.
but dont you think it's speculative nature plays a role in that? the price is not high because of genuine demand, yet.
Bitcoin is a transnational currency. It is not a stock. It does not follow news as if news is the only thing that moves the price. It follows supply and demand. There are large market forces at play that have nothing to do with news events. When there are more coins going in than fiat, then it goes down. When there is more fiat going in than coins, then it goes up. Whenever there is a bad news event like Silk Road but the price recovers, people like to say "oh honey badger dont care". Well guess what - it's the same thing with GOOD news events - If the price is in a downtrend then the price will "recover" from the good news events and continue its trend down. Bitcoin runs a boom/bust/hype cycle about every 6 months and there is always a capitulation regardless of whatever news events are going on. The whales behind the scenes pushing hundreds of thousands of coins and millions of dollars are much more powerful than the people reacting to news events. So please guys every time there is a drop or a rise - stop saying "omg what is the news?". It looks silly.
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