Investment in the Bitcoin infrastructure is increasing. Real investors are holding onto their wallets for the inevitable long term gains, and many more are joining them. The flight is not by the investors, but by greedy speculators who don't understand the technology, or the current world economies.
not necessarily.
in fact i do believe that drops like these are caused by people who understand the bitcoin technology and huge potential too well that is why they are trying to accumulate more of it. the drops doesn't occur slowly, it usually is caused by a big offload of BTC on the exchanges that crashes it down with a sharp drop. that leaves me to believe that it is whales selling to crash the price not other investors, they follow the drop afterwards.
You're right. If you had a lot of Bitcoins that you bought or mined years ago what would you do in this market full of newbie investors and hype buyers? I'd borrow some fiat money, put it all into futures and sell all my bitcoins to crash the market. Next, I'd wait for the panic to settle, buy back all the bitcoins and take profit from my futures. In the end I'd still have my Bitcoins and millions of dollars of profit from futures.
