This is not the primary reason for the sell down today. Segwit will occur.
The overall market cap had decreased by 20 Billion the last few days all the way down to 74 Billion at on point when ETH was $185. Within a few seconds it went to 77 Billion with an influx of 3 billion under 1 minute.
Then when BTC went down to $2250 the market cap was 77 Billion. Then within seconds over 80 Billion with another influx of over 3 Billion.
Who has 20 Billion to put in and take out of cryptocurrency? Wallstreet and Hedgefunds.
Who can make coordinated buy orders under a minute globally across all major exchanges in the billions? Wallstreet and Hedgefunds.
They are not going to buy at market price when they allocate major positions. They are going to do what they do in the stockmarket and find or create great entry points.
Coordinated collusion/selldowns to manipulate the market to get at a better price for core entry positions.
Goldman Sachs even predicted this in an article last week. Probably because they are in on it.
This is the beginning of the huge daily selloffs leading up to August 1st.
Nobody should be selling now.
Everyone should be buying at the daily BTC lows.
Not panic selling either on the high upside Alt's.
If you have an ETH heavy portfolio you may want to consider allocating half in USDT to hedge and buy at the extreme ETH lows.
I would expect this to occur daily during week days leading up to August 1st.
It is the selloff before the surge when big money gets all in before August 1st.
BTC will be over 3K by the end off August and 5K by yearend.
ETH will recover in time and probably around $500 by yearend.
Dash and LTC are safer investments for time being.
Don't be the person that panic sells and misses the next big wave.
Hold steady for the next 30 days buy low on the Alt's you like when they are double digit in the red and keep buying.
They will all rise as BTC and ETH rise again.
It's not anyone 'putting in' $20 billion, it's the the price that people are prepared at has risen.
Dude awesome analysis.
I have 2 layman analysis pointers.
The rate of fall is not equal to the rate of rise. BTC is in a secondary bear trend, but if it was REALLY OVERPRICED, it would have freefalled. So many people with a panic/selling mentality and they can barely get the price down by 200$.
The analysis is happening with the present scenario in mind, that the market is down. But then, we are forgetting the reason why BTC rose meteorically. And that reason is still there, a trustless asset of value that embraces encrypted digitised storage and transfer. There is a reduction/removal of many footprints, while still enabling exchange of value!
People who panic and sell will regret.
But people who sit and do nothing will also regret.
I will agree to liquidating<40-30% of both BTC and ETH to USDT, in a maximum of 3 increments(you'll have to pay more brokerage, at the advantage of being sure!, and I would gladly pay the extra brokerage as a confirmation fee) The incremental sell offs from BTC/ETH to USDT stops whenever the upsurge resumes. The idea is SELL HIGHER/BUY LOWER.
Consistent action in this manner will leave you with more BTC/ETH than you originally had!!
Great post!
How are those two in particular safe right now?
The LTC price historically has direct correlation with BTC pricing. (LTC/Silver to BTC/Gold)
Typically, if BTC is up then LTC is up. If BTC is down then LTC is down.
Usually, not as drastic the negatives on the other Alt's. Like Steem right now -28%. Steem is a steal at close to $1. The lower value crypto are the first to dramatically sell off when the market turns.
LTC also has a lot going for it right now with faster transactions, Charlie Lee and the Asian markets have been buying it up at frenetic pace driving up the price.
DASH has significantly out performed ETH last 45 - 60 days where ETH has lost nearly half the value from the all time high of $390. I was and still am a big proponent of ETH.
A lot of the ETH price slippage has to do with the ICO's. People making millions in ETH for funding the ICO's. Then those people trying to cash it out in big chunks and tanking the market bringing down the price.
In my opinion, DASH is stronger and more stable right now with major announcements on the horizon. It is going to directly take on Paypal, Venmo and the like.
It is also going to be the crypto currency of choice for the African continent.
Dash is more of a long term store of value as currency being Proof of Stake where ETH is a smart contract platform that is Proof of Work that plans to be Proof of Stake.
ETH is also going to fork again at least once with Crispr and potentially again afterwards.
Both are great in the longer term. But I think ETH will see a lot more competition in the future from EOS & Tezos.
Next 45-60 days BTC, LTC, DASH are the better plays and less risk.
I would also look to pick up EOS, Bancor, LISK, PIVX, Aragon, Steem, ARK, SYS, VIACOIN, SIA, NXT, Waves, Decred, Golem. Discount sale right now.
I suspect that driva is part ethtrader...nice to have you here.
Goldman Sachs even predicted this in an article last week. Probably because they are in on it.
I dont think these corporations would reveal such details if they are "in it" strategically. If they do, something might be fishy as well. Much more than what could meet eye.