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RE: Mt. Gox is a big reason for the Bitcoin price crash from all time high

in #bitcoin7 years ago (edited)

This demonstrates how closely "plugged-in" crypto-enthusiasts are to the social-media/news cycle, and how much the crypto markets are influenced by short-term news events & psychological reactions to them. I believe this is largely what makes cryptos so volatile.

Knowing that this is "the way it goes" in the crypto markets, it does provide great opportunities for buying dips based on short-term FUD. I also think that the somewhat slower & measured recovery of the BTC price is a good thing - more sideways movement that tests both support and resistance levels. Hopefully, this is helping to make BTC slightly more stable in the long-term.

Resteemed.

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Very good reasoning.
Bitcoin is free market and this is actually great. Free markets obey supply and demand rules more transparently. And selling big stack of Bitcoins just trigger predictable consequences. So people who know enough of markets and trading had profited and dummies pay the price. As it goes:

Bulls are making money, bears are making money and pigs are slaughtered!

So folks it's education time! Educate yourselves about trading and crypto markets and volatility will be no problem any more. I'm just fine with it. Holes in my accounts teach me to manage my risk and use head instead of balls in trading.
I realize that reasonable profits over longer period are the right thing. the sooner people will learn that lesson, the better crypto world will bee. I think that is definitively possible to manage wealth in crypto assets and they are great because wealth is private and only yours and you have full control over your property in crypto.

Absolutely, coupled with Crypto being so easy to move and sell as opposed to other assets, must cause huge volatility as investors and speculators see the news, it is easy to sell almost instantly and just as easy to buy up on the dips.

It's great that all of that FUD has been priced in and it bounced of the 6k region, getting no where near jan 2017 territory. some stability now in price will send some good signals to investors also as regulations come into place, creating a safer environment for big funds and whales, there is even talk of central banks considering adding small positions as well.

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