It does not work like that. Lets say you put market sell order for 10 000 BTC, when bitcoin at that moment costs 10K USD. Market sell order will hit all highest buy orders untill all bitcoin is sold. After selling highest buy order will be somewhat lower. Multiply last order (highest remaining buy order) price with circulating bitcoin and you'll have your new market cap. Even though you have sold only 10K bitcoin which at that moment was worth 10K * 10K USD, after the selling market cap may be reduced much more than 10K * 10K.
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Yeah, I understand the way it works, but was just making a point that there is a lot more at play here than just a few hundred thousand BTC being sold over a several month period. My point here is while I agree it certainly had some impact, we're probably talking a fraction of the total BTC sold in that period of time. In fact, I wouldn't at all be surprised if the "news" of the 200,000 BTC being sold had more of a FUD factor sell off than the actual selling of 200,000 BTC being sold, but who knows. It is a big market and there are so many things at play in the world these days.
Of course. It cant be all this alone, even though sudden releases of bitcoin also triggered bot selling which react to speed of price decrease, which in turn reinforced FUD / panic selling and so on.
True. The articles I read on that stated the 200,000 BTC being sold was over several months (Dec. '17 - when the article came out) and I don't recall it implied it was all sold yet or not. So who knows.