Most causes of dumping are rumors. Though, may sell their asset based on how they bought it. Like me, i have percentage of profit for my assets. Any of them that reaches their is good to go. I have few altcoin that i am keeping for long period.
Most are caused by rumor and hearsay but this one has got some substance to it because with $18mln USDT settlement finally happening and Bitfinex taking a hit from it, that could of caused some of the blood to be spilled when the dump occurred.
With all the news of bans happening in India and Pakistan along with F2 pool with miners doing a massive sell-off all at the same time,
Then it was once again a perfect storm which culminated all at one time.
I had really seen all the possible causes of the drop, although not the Bitfinex thing, and it makes a lot of logic, after that fine the market in general may be bleeding, although Bitfinex must have an emergency safe that covers the equivalent, and for In order to get out of that problem that has been going on for so long, this is a very valid cause. Thanks for bringing it and sharing it..
Everyone who has been involved with cryptocurrencies since the inception of tether on bitfinex had been waiting for that day to see justice being served. But that fine was just a slap on the wrist for them as they have made much more than just $18mln across all exchanges with more than most of the major exchanges still holding and trading tether on their platforms. So it will never go away even if it has been proven more than once they do not have the backing of fiat that they said they had for USDT 1:1. So it was essentially just created out of thin air and they kept the money printer burning bright until it melted red hot.
There has been many more accusations/speculations on why the dump occurred but these I listed were the major ones that had evidence and the others were just so outrageous that they do not warrant a reason to even discuss about here.
It's a normal correction because in the past week market price is on a rally up to 58k$ without a dump the last ATH as I remember was around 40k$ in the market and continues to skyrocket.
After the Tesla announcement market price pump to 58k$ in just a short time, so this correction is normal I can guarantee it would back up after a few months or even less.
For now, market price could be back already as long as it didn't bring down to 42k which I think where the support is, it is not likely to go below 42k$ if it continues to go down it will probably reach 35k$.
At this time its a good time to hold your position and make a good profit, the market is just so volatile at this moment so you could play your position and make a profit in short term.
$58k down to $47k at what were are now of this posting is $11k drop within a week is pretty unprecedented amount to lose for a short amount of time.
Even for bitcoin, so this is kind of more than a correction.
It could be a plan by those who have been accumulating in the past two months, such as grayscale (GBTC) and Microstrategy (Sailor) just for an example and not accusing these entities of any wrong doing, participating in a coordinated sell-off so they can buy back at a lower price.
But once again this is categorized under one of those speculation theories so do take it with a grain of salt.
Can it be true? Sure but someone has to lose in the end. So it does not make a whole lot of sense for them to do it. Unless to stir up the markets.