Why does bitcoin crash occasionally? - page 7.

Nitroali

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#41 Haga

Quote from: GetOutOfMyLife on January 20, 2018, 08:44:35 AM

So, as many of you are painfully aware, bitcoin crashed around 30% over a couple of days, reportedly due to regulatory pressures in Asia, and a potential ban in China due to energy wastage and tax evasion risks etc. Reports suggest that China contributes as much as 70% of the worldwide hashing power, and yet we only saw a 30% drop.

Source: Report: PBoC Quashes Bitcoin Mining Ban Rumor in China

Furthermore, we saw 30%+ drops in other cryptos, even unminable, non-decentralized ones. So, conspiracy theorists, why do you think bitcoin really suffers these sporadic crashes, could it be large-scale market manipulation? Or is it simply FUD leading to a wide-spread panic selling?

Simply it is a not regulated market so 30% var are normal

hahahafr

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But they are never going to understand this, we all need a little dip after a huge bullish trend.

Quote from: laowang666 on January 20, 2018, 08:52:08 AM

I think the price reduction of bitcoin is a normal phenomenon, it is a very normal adjustment.
A lot of people saw a lot of falls, and they said they broke, I don't think so, I think of it as a correction, so it's better to go up.

And no, this is not a crash, and it can not be compared to one.
The price has only dropped 55% from the ATH, and a crash, could be considered when the price drops by more than 80%.

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Quote from: GetOutOfMyLife on January 21, 2018, 06:57:02 AM

Quote from: laowang666 on January 20, 2018, 08:52:08 AM

I think the price reduction of bitcoin is a normal phenomenon, it is a very normal adjustment.
A lot of people saw a lot of falls, and they said they broke, I don't think so, I think of it as a correction, so it's better to go up.

A 30% drop doesn't seem like a normal adjustment to me, seems like either market manipulation or a panic sell.

What's the difference between a normal adjustment and a panic sell?

It's normal for markets to overvaluate assets, only to crash down and undervaluate them at a later time. Bitcoin is no exception and much more extreme in terms of price movements, both up and down. I know we've been spoiled by the recent bull market, but the price fluctuations Bitcoin has gone through have been much harsher in much shorter timeframes just a few years back. The reality is that Bitcoin is still a highly speculative asset with little comparables for gauging the "proper" price level leading to the volatility we still see today.

There might be large scale market manipulation at play, but if that's the case it likely was the cause of the recent bull market as well, not just the crash.

NeuroticFish

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Quote from: GetOutOfMyLife on January 21, 2018, 06:57:02 AM

The utility of bitcoin has been decreasing as transaction fees increase, and yet BTC price rose massively in spite of this. I understand it is difficult to understand the exact cause behind the price movements, but still I think we can narrow down the changing parameters if not understand the whole driving force.

To be a way of payment is not the only utility of Bitcoin. Many use it as store of value or as speculative/investment asset. And for that the transaction fees don't matter much.
Of course, since it's an unregulated market, manipulation with FUD (with news, with spam with extreme trust or negativism on forums), bots, maybe even pump and dump (at banks/states level) can be some "recipes" for what happens on the market.
Also, the extremely fast growth calls for correction now and then.

bolawin

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buy bitcoin, hodl bitcoin

up and down, rise and fall. thats life

GetOutOfMyLife

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Quote from: laowang666 on January 20, 2018, 08:52:08 AM

I think the price reduction of bitcoin is a normal phenomenon, it is a very normal adjustment.
A lot of people saw a lot of falls, and they said they broke, I don't think so, I think of it as a correction, so it's better to go up.

A 30% drop doesn't seem like a normal adjustment to me, seems like either market manipulation or a panic sell.

Quote from: X7 on January 20, 2018, 08:54:34 AM

It is a living market - there are so many factors which contribute to the up and downswings of a token with as much liquidity as bitcoin.

From:

a) Market manipulation
b) Longs/Shorts being called
c) Bot Triggers
d) Greed
e) Fear
f) Safe havens
g) Speculation / store of value
h) Utility

etc etc

The utility of bitcoin has been decreasing as transaction fees increase, and yet BTC price rose massively in spite of this. I understand it is difficult to understand the exact cause behind the price movements, but still I think we can narrow down the changing parameters if not understand the whole driving force.

X7

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It is a living market - there are so many factors which contribute to the up and downswings of a token with as much liquidity as bitcoin.

From:

a) Market manipulation
b) Longs/Shorts being called
c) Bot Triggers
d) Greed
e) Fear
f) Safe havens
g) Speculation / store of value
h) Utility

etc etc

laowang666

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I think the price reduction of bitcoin is a normal phenomenon, it is a very normal adjustment.
A lot of people saw a lot of falls, and they said they broke, I don't think so, I think of it as a correction, so it's better to go up.

GetOutOfMyLife

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So, as many of you are painfully aware, bitcoin crashed around 30% over a couple of days, reportedly due to regulatory pressures in Asia, and a potential ban in China due to energy wastage and tax evasion risks etc. Reports suggest that China contributes as much as 70% of the worldwide hashing power, and yet we only saw a 30% drop.

Source: Report: PBoC Quashes Bitcoin Mining Ban Rumor in China

Furthermore, we saw 30%+ drops in other cryptos, even unminable, non-decentralized ones. So, conspiracy theorists, why do you think bitcoin really suffers these sporadic crashes, could it be large-scale market manipulation? Or is it simply FUD leading to a wide-spread panic selling?

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