bgz wrote:It's not a slump, it's a big drip (more like a vacuum). The algorithm is yanking money out of the market.
The big wall happened at 20:25 utc. You can see the big flat part right before the tank, it was just sitting there gobbling money. That's when it made the "come on, hand it over" motion with the tongue at the bottom of the wall.
That's not when they turned it on... I'm having a hard time finding it, but it was earlier in the morning. It was easier to see on my phone when it was on the same day.
Let me ask you this... what would the charts have looked like if, rather than an intervention by algorithm, there was a coordinated withdraw from the crypto market?
For instance, let's say a few months back some guy decided he was going to make money in crypto currency... so he gets 100 friends to invest with him... they all invest in the same currencies and they all buy and sell simultaneously...
On the other end, these guys are spreading the word about how smart it is to invest in crypto... they're on reddit, they're on twitter, they're even on cbid...
keep in mind, they're already invested, so the more people they can convince to buy in, the more money their crypto is worth.... and the more their crypto is worth, the more word spreads about how valuable these currencies are and the more people are willing to invest...
it's a beautiful cycle! But only if you're the guy or one of his hundred friends...
Because one day the guy is gonna decide the imaginary balloon is getting too close to popping.... and he's gonna bail on the whole crypto market... and his 100 friends are going to do the same thing at the same time...
And like all pyramids, when you remove the bottom layer the whole thing comes crashing... may take days or weeks or months even... but the other layers will eventually realize the weight they're bearing and they too will bail...
Moral of the story: the guy and his hundred friends are gone... they've taken the money they made off of people who believe the hype and placed it safely back in the stock market... but they'll be back and they'll make sure to let you know when they are... right after they buy their shares...