From the desk of Forex Guru Leroy Fodor B.B.A. Speaketh:https://www.facebook.com/permalink.php?story_fbid=1756240017933312&id=1627849564105692Stakeminer - Bitcoin Halving in July - 10 April 2016
Potential impact on Stakeminers of the upcoming bitcoin halving.
Recently traders have begun selling altcoins as they prepare for the bitcoin halving. This weekend our staked trades saw prices steady with some downward pressure but still not touching the lows of the January-February period.
We expect this to be a temporary move into bitcoin as traders prepare for the bitcoin halving at which time they expect the price of bitcoin to increase. To prepare for this they are selling a portion of their altcoin portfolio for bitcoin.
The traders do not want to buy bitcoin because that will cost them fiat funds and increase their downside risk if the price of bitcoin does not increase as expected. Selling altcoins to raise bitcoin minimizes their potential for loss. Once the bitcoin halving arrives,
either the price of bitcoin will rise and they will sell for a profit and then re-buy altcoins or else if prices remain steady or decline traders will just sell their bitcoins and again re-buy altcoins. Funds will eventually return to the altcoin market.
Currently we are seeing some stability with altcoin prices which is a welcome respite after the wild ride of the last 6 months.
Translated: Altcoin prices remain steady but are declining, but not tickling lows seen 2-3 months ago. Altcoins are being sold to purchase bitcoins due to the forthcoming halving. Traders are so sure of this that they don't want to risk spending fiat to purchase bitcoins because of the risk so they're selling their stable altcoins. After the bitcoin halving, the following scenarios: bitcoin will rise, thus sold off to purchase altcoins; bitcoin will remain steady, thus sell off to purchase altcoins; bitcoin will fall, thus sell off to purchase altcoins; bitcoin will rise, remain steady AND fall, causing chaos, thus sell off to purchase altcoins. Bottom line: Moneys will return to altcoins - unless they don't.
Currently, we're seeing stability in altcoin prices barring declines, but we'll celebrate when the prices rise after suffering through the wild ride of the last 6 months, unlike the ride 2-3 months ago to the bottom.
The author of the above is none other then the venerable Leroy Fodor who once had 380 consecutive successful gains in the Forex market, selling his complete portfolio in 2011 and again in 2014 so to build the largest bitcoin mining farm in all the Philippines complete with solar power which both burnt to the ground caused by fire, leaving nary a trace of evidence that such farms existed, but take his word for it - they did.