Bitcoin advocates and the markets in general have been bemused by the recent downward spiral of the Bitcoin price. What is behind the fall?
Speculation is rife that it is actually Bitcoin investors have been driving down the price with strategic sells.
Coindesk reported that the drop only ‘hard bottomed’ when the price hit $300.
On Sunday October 5th bitcoin’s price plummeted below the 18-month average purchase price of $337.60, causing widespread concern amongst traders. Early Monday when the Asian markets opened a sell order of 26,000 BTC appeared on Bitstamp. The price fell to $300 and then something strange happened. In the traditional stockmarket parlance a ‘Buy, Buy, Buy’ bull market arose with investors eager to snap up the supply.
Many Bitcoin experts such as Adam O’Brian of BTC Solutions have speculated that the 26,000 BTC sell order was the work of an individual investor trying to lower the market price so that they could buy the BTC back for a bargain price. This form of manipulation is not uncommon in FIAT currencies and if true it does give BTC enthusiasts some comfort in that the underlying causes of the drop are not based on wider issues or problems.