4um: Bitcoin crashed because professionals cashed out, making a buck from last-minute amateur investors

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Title: Bitcoin crashed because professionals cashed out, making a buck from last-minute amateur investors
Source: [None]
URL Source: https://www.rt.com/business/416472- ... -because-professionals-cashed/
Published: Jan 20, 2018
Author: © Chris Helgren
Post Date: 2018-01-20 03:27:07 by Tatarewicz
Keywords: None
Views: 922
Comments: 16

RT... The largest cryptocurrency bitcoin surged to $20,000 in December. Its rapid growth was due to common folk deciding to invest in the hope of making a quick buck. It was a time for professional investors to sell.
Read more © Clodagh Kilcoyne ‘Bitcoin will take the arrows, settlers will get the wealth’ – PwC exec
“Many people behind bitcoin and cryptocurrencies as a whole understand that the skyrocketing prices in the last few months are linked to a cash inflow from mass-market consumers. Even pensioners wanted to invest,” Georgy Verbitsky, managing director at eToro, Russia and the CIS, told RT.
Bitcoin hit $20,000 last month, breaking new records every day. But this week, a sell-off swept the cryptocurrency market, and bitcoin slid below $10,000 on Wednesday.
“Experienced investors knew that the bitcoin honeymoon couldn’t last forever. Those who catch the last train are usually punished by the market. Big-time miners and investors understood that they needed to diversify, that they had to get some fiat money. People who raised money on the ICOs had to pay wages to developers,” the analyst said. Read more © Philippe Wojazer Visa may be waging war against bitcoin by rejecting it as currency
Many analysts are linking this week’s bitcoin collapse to news from China and South Korea. Regulators in these Asian countries are said to be cracking down on cryptocurrencies. However, the fall actually happened because those who bought bitcoin for $17,000 to $20,000 were disappointed about a lack of further growth, and brought bearish sentiments to the market, according to the analyst.
“It was about pure greed. Of course, after they lost a third to a half of their investments, they pushed the ‘sell’ button. A consolidation around $12,000 and $14,000 can now be expected,” Verbitsky said, adding that prices may remain stagnant for at least six months.
The analyst proved his point by recalling the Chinese ban on ICOs in September. That was a bigger blow to bitcoin than this week’s news, but the market was bullish, and the hit went unnoticed. Now, bearish sentiments are prevailing, and every negative news results in a bitcoin slide.
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#1. To: Tatarewicz (#0) (Edited)
A consolidation around $12,000 and $14,000 can now be expected,” Verbitsky said, adding that prices may remain stagnant for at least six months.

Are the people of the world being manipulated ? If so, who are the manipulators ? It looks to me that there is way too much opportunity for powerful entities to commit fraud.
The international bankers will not allow their control to be stifled by crypto-currency even if they have to own it all like they own the stock market and the U.S. Government.
If it looks too good to be true - it likely is !
Ephesians 5:11King James Version (KJV)
11 "And have no fellowship with the unfruitful works of darkness, but rather reprove them. "
noone222 posted on 2018-01-20 5:43:06 ET Reply Trace Private Reply
#2. To: Tatarewicz (#0)
Bitcoin crashed because professionals cashed out, making a buck from last-minute amateur investors

Nonsense. Bitcoin crashed because China and Brazil put state controls on it. ;)
"When bad men combine, the good must associate; else they will fall, one by one." Edmund Burke
BTP Holdings posted on 2018-01-20 6:30:58 ET Reply Trace Private Reply
#3. To: Tatarewicz (#0) (Edited)
The author makes it sound like Bitcoin has, as predicted, crashed and it's all over for cryptos. The party is over. The fat lady has sung. All the naysayers were right.
He does admit that in September Bitcoin also lost half it's value, dropping from about $5200 to $2600. Needless to say, it recovered from that in a couple weeks time and went 4x higher. Prices now are about what they were about 6 weeks ago at then-record high prices before it hit $20K. So it's curious he writes up this similar pull back as an obituary for Bitcoin.
He's partially right though. I think there are a lot of people who jumped in on a frenzy, who saw it as a get rich quick scheme, and who do not have the professional trading mindset, and they are probably the ones that drove it up to 20K and later sold off for a loss when fear materialized as the value dropped. In hindsight, I'd say Bitcoin's rise to 20k was premature and too rapid, but that's what the market does when amateurs jump in. It was unfortunate. Up until Nov of 2017, the big question about Bitcoin was if it would actually make the holy grail price of $10K before the end of the year. Well, it did, and it's still beyond that price.
I think it was premature and unfortunate that bitcoin rose so fast to $20K. So it's pullback to $10K is hardly a death knell for the cryptos. Yes, China's seeming war on Bitcoin likely played a role in the price drop as well. But then again, September's 50% pullback was also due to action by China.
Personally, I do expect a period of consolidation in Bitcoin price. But I don't see it lasting for 6 months. Maybe 1 month.
The war on crypto's will continue. Or perhaps I should say, the war between cryptos and establishment governments will continue. They don't like it because it challenges their corrupt control.

Pinguinite posted on 2018-01-20 9:58:21 ET Reply Trace Private Reply
#4. To: Pinguinite (#3)
Good idea to sell part of an investment after it doubles; re-invest after price drops.

Tatarewicz posted on 2018-01-21 0:40:47 ET Reply Trace Private Reply
#5. To: Tatarewicz (#4)
Good idea to sell part of an investment after it doubles; re-invest after price drops.

I think cryptos are here to stay, and as the world discovers that, the prices will continue to climb. And I think it's got a long way to go. It will be a roller coaster like has been seen over the past 2 months. So yeah, buy low and sell high. Never short any crypto. That's my call. But don't over invest. Pullbacks can be and will be dramatic. It's not for the feint of heart. It takes a professional trading mindset, and a confidence.
Cryptos are not money. Yet. They will be. Prices will continue to climb until even the naysayers change their tune. At that point, it will be overbought, finally. Hopefully by then it will be possible to spend crypto currency. Then there will be a huge pullback as everyone who bought it as an investment start to spend it. As the saying goes, bad money drives out good. When crypto looks to seriously correct and people start spending it because it's "bad money" then it will take root as a currency, and it won't be called a commodity any more, except by bankers that hate it.
In the mean time, cryptos will continue to evolve as software developers make adjustments to make cryptos more and more palatable to the general public. In that sense, cryptos are basically a living currency.
That's a few years away, but that's my call.

Pinguinite posted on 2018-01-21 1:44:55 ET Reply Trace Private Reply
#6. To: Pinguinite (#5)
Couple of comments by savvy investors at Stock Gumshoe:

Leo Graciano...
Lost big time on AVXL! Not interested in this. But can you tell us what the $0.70 cryptocurrency Jim Rickards teased us with this weekend (on Saturday, Jan. 20, 2018) is? And how to buy into it?

Andy...
Stellar Lumens (XLM) appears to be a close match. You would need to buy some Etherium (ETH) from the likes of Coinbase first then trade it for XLM on an exchange like Binance. Then I would recommend transferring them to a hard wallet device to take it offline so that you hold the private keys and can’t suffer loss from a hacking of the exchange.
www.stockgumshoe.com/revi...pletely-treatable-teaser/

Tatarewicz posted on 2018-01-22 10:22:46 ET Reply Trace Private Reply
#7. To: Tatarewicz (#6)
Andy...
Stellar Lumens (XLM) appears to be a close match. You would need to buy some Etherium (ETH) from the likes of Coinbase first then trade it for XLM on an exchange like Binance. Then I would recommend transferring them to a hard wallet device to take it offline so that you hold the private keys and can’t suffer loss from a hacking of the exchange.

Really ... hahahahaha !!!
Ephesians 5:11King James Version (KJV)
11 "And have no fellowship with the unfruitful works of darkness, but rather reprove them. "
noone222 posted on 2018-01-22 11:24:29 ET Reply Trace Private Reply
#8. To: noone222 (#7)
Really ... hahahahaha !!!

Agree: like you or I would know how to do any of that (even if we wanted to).
“The most dangerous man to any government is the man who is able to think things out... without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane, intolerable.” ~ H. L. Mencken
Lod posted on 2018-01-22 21:22:10 ET Reply Trace Private Reply
#9. To: Tatarewicz (#6)
I wouldn't advise buying into any crypto until it obtains a price of at least $10 per coin. Less than that, you are buying something that is one of a great many startups, and is also unproven.
Bitcoin, Bitcoin Cash, Ethereum, LiteCoin and Dashcoin are the big 5. They have made the crypto major leagues.

Pinguinite posted on 2018-01-23 1:45:47 ET Reply Trace Private Reply
#10. To: Lod, noone222 (#8)
You would need to buy some Etherium (ETH) from the likes of Coinbase first then trade it for XLM on an exchange like Binance. Then I would recommend transferring them to a hard wallet device to take it offline so that you hold the private keys and can’t suffer loss from a hacking of the exchange.

Translated:

You would need to buy some Etherium (ETH) from the likes of Coinbase first

First you open an account on coinbase.com, which is an outfit that will accept dollars (via credit card) and in exchange povide you some Ethereum crypto currency.

then trade it for XLM on an exchange like Binance.

Once you have ethereum, you visit binance.com which will accept your ethereum crypto currency and exchange it for you for "XLM" crypto currency. "XLM" is apparently one of a great many cryptos available.

Then I would recommend transferring them to a hard wallet device

A hard wallet is a device a bit larger than a flash drive that you can plug into your computer to receive various types of crypto currency. As a piece of hardware separate from our computer, you don't have to worry about you computer getting hacked and losing your crypto currency. At least when the device is unplugged from your computer.
It's also more portable. You can take it on your world trips and plug it into any computer to conduct transactions.

to take it offline so that you hold the private keys and can’t suffer loss from a hacking of the exchange.

This part is a bit wrong. If the concern is a hacked exchange, you don't need to put it on a hardward wallet. Your software wallet on your regular computer will do just as well. But yes, you shouldn't leave crypto currency on any exchange except when needed to do exchanges.

Pinguinite posted on 2018-01-23 1:55:45 ET Reply Trace Private Reply
#11. To: Pinguinite (#10)
Thanks for the explanation I do appreciate it. Maybe I'm just too old fashioned to adjust my thinking about crypto currencies even though I'd love nothing more than to see the Central Banks operating a commercial paper clearinghouse for corporations that doesn't impose itself on every transaction necessary for the routine operation of the day to day activities of the average person.
While some people are calling for a gold/silver backed currency I don't know that a system couldn't operate either using a wider choice of metals to back the currency or even a system without the use of any metals to supply value as long as the system allows for common daily transactions of people to be private and without any adhesion to the commercial/corporate system. [All transactions considered commercial are subject to commercial law with absolutely no obligation to follow Constitutional or common laws]. Today every transaction is considered commercial in a legal sense based upon the use of a private currency owned by the Central Banks, that causes an invisible or imperceptible LIEN to attach because of the use of currency OWNED by the Central Bank of issuance.
This (PRIVATE CURRENCY) condition is so pervasive that every transaction can be considered commercial which was never the intent of the founders, but is the result of a fraud operated upon the American people (and most others around the world) by the banking cartels and politicians without the knowing consent of the people.
Americans should never have borrowed from a private banking concern or any foreign entity when the Constitution calls for congress to oversee the production and regulation of monetary issues. If the Treasury were to loan money into existence at least then we'd be paying the interest on that money BACK INTO THE TREASURY, and not to a (private) Central Bank. The TREASURY would then set interest rates rather than a consortium of private bankers.
Ephesians 5:11King James Version (KJV)
11 "And have no fellowship with the unfruitful works of darkness, but rather reprove them. "
noone222 posted on 2018-01-23 3:56:50 ET Reply Trace Private Reply
#12. To: Pinguinite, Lod (#9)
I wouldn't advise buying into any crypto until it obtains a price of at least $10 per coin. Less than that, you are buying something that is one of a great many startups, and is also unproven.

I see all of the crypto currencies as unproven at this time. I suppose those that have benefited substantially might disagree.
Ephesians 5:11King James Version (KJV)
11 "And have no fellowship with the unfruitful works of darkness, but rather reprove them. "
noone222 posted on 2018-01-23 4:32:56 ET Reply Trace Private Reply
#13. To: noone222 (#12)

I see all of the crypto currencies as unproven at this time. I suppose those that have benefited substantially might disagree.

What would be acceptable proof? Have fiat dollars proven themselves?
Bitcoin is about 8 years old at this point.

Pinguinite posted on 2018-01-23 11:03:19 ET Reply Trace Private Reply
#14. To: Pinguinite (#13)
What would be acceptable proof? Have fiat dollars proven themselves?

Fiat has proven itself to be very destructive in every instance of its usage forever. I'm not suggesting it's good but I will say that we've grown accustomed to it and in some ways have learned to deal with it.
I think a person well versed in computer programming might be far more comfortable than myself in regards to the crypto-currency.
The 8 years of existence just shows how far behind society has left me !!!
Ephesians 5:11King James Version (KJV)
11 "And have no fellowship with the unfruitful works of darkness, but rather reprove them. "
noone222 posted on 2018-01-23 11:43:39 ET Reply Trace Private Reply
#15. To: noone222 (#14)
I think a person well versed in computer programming might be far more comfortable than myself in regards to the crypto-currency.

Definitely true. A substantial disadvantage of cryptos is they cannot give the comfort of tangibility. I suppose comfort will come with time, as newer generations are always more comfortable with any given level of technology than their predecessors. Imagine how much comfort people in the 60's would have had about the notion of accepting a copy of a plastic card as payment.
Things do change.

Pinguinite posted on 2018-01-23 12:11:36 ET Reply Trace Private Reply
#16. To: Pinguinite (#15)
A substantial disadvantage of cryptos is they cannot give the comfort of tangibility. I suppose comfort will come with time, as newer generations are always more comfortable with any given level of technology than their predecessors.

Agreed. And I do remember the beginning of credit cards ... had to have that Sears Charge man ! (And things definitely change !)
Ephesians 5:11King James Version (KJV)
11 "And have no fellowship with the unfruitful works of darkness, but rather reprove them. "
noone222 posted on 2018-01-23 16:47:21 ET Reply Trace Private Reply
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