We have not seen bad news lately, but most Crypto currencies are losing value. We have to ask ourselves, why that might be?
The theory is that Wall Street traders are using Institutional Capital to create a favourable environment for them to buy bitcoins for themselves.
The South Korean clamp down is just FUD that are being used as an excuse to dump some coins. There is no threat, because the South Korean government is just tightening regulations to protect their consumers from unregulated exchanges.
We know Wall Street traders are getting large Bonuses in January and some of them might invest some of that money into Bitcoin for themselves. Why would they not manipulate small markets like Bitcoin to buy cheaper bitcoins for themselves?
What do you think?
Like you have rightly titled, its a theory because there is no evidence to back it up. This analogy is very much reasonable as to what is going on because traders on Wall Street can go to any length to turn out profit for themselves but some part of the theory is where I am seeing some gap and would be glad if you can help fill it.
1. If the traders are expecting bonuses in January which means that some would have been collecting theirs already and they are investing in bitcoin, then price should be increasing and not what is going on now and if they are driving down the price, how exactly are they doing it?
2. Before the South Korea news which you regarded as FUD, price has been falling gradually since last year, what were the traders spreading at the time?
