There are many theories as to why Bitcoin and pretty much all crypto currency prices are dropping right now. Some attribute it to China’s ban on ICO’s, which has resulted in widespread rumors, fear mongering and good old fashioned FUD.
Other accounts point toward the IRS’s increased scrutiny of would be, American tax evaders, or a mysterious whale(s) or any other number of things.
While the above mentioned likely had some influence, the main culprit is responsible is you and me.
Does China bring the market down, or some unnamed whales or "Spoofy"?
Nope, not even close.
We all are responsible.
We are responsible for bringing the market down each time it drops in just the same way we are responsible for bringing it this far-
Because there are way more of US than there are of THEM.
The POWER is in the numbers, in US. No country, no whale and no Spoofy has the power to do this, not even close.
But every one of us does, collectively that is.
The fundamentals of whatever coin(s) or token(s) you are invested in have not changed, they never do during these drops, nor do they during the gains. The only thing that changes is our emotions, specifically our fear and our greed.
That's what drives markets.
The elites, the law makers, governments, whales and so on do not have control over the crypto market. Do not give them that much credit, they are nowhere near strong or smart enough.
They do have power over one though, which in my opinion is much more frightening:
Your EMOTIONS.
If you let them anyway.
They have the power to make large, coordinated purchases, the power to create laws that create headlines that in turn create fear and greed among the masses.
And that's when they get you.
Every time.
That's when they buy up all YOUR coins you sold at a price much lower than you know they are worth. Much lower than you know you should have. That's the fear working in you, irrational fear.
Or when you HODL way too long and don't take some profit, or re-invest, way past the 50%, 60% even 100% gain- then they dump on you.
That's your greed working, it makes you think the good times will never end, that the pump will never stop.
THEY have the power to capitalize on your FEAR and your GREED because they know the game.
They invented it.
Crypto currency, as decentralized, trustless and brilliant as it is, is still a tradable assest. It's a scarce resource and the basic rules of economics have not changed.
The rich get richer, you know the story. It's just like clock work.
Ever notice how every time you think things are going well in crypto land, the rug gets pulled out from under us and the market dips?
And then when the last person yells out "Crypto is Dead!" for the last time, and you sell your last ETH or BTC or LTC, reluctantly, perhaps even at a loss, it rockets again?
Every.
Damn.
Time.
The point of crypto is to transcend and defy borders, governments and big money corporations and institutions, not to obey and conform. That's what everything else is for.
With crypto, it can and should be different. We have the power because we are the NUMBERS.
But do we have the power to control our fear and greed? The power to learn to recognize when we are being manipulated and learn to say "f*** that"?
That's what the game changer will be.
Charts and TA are great. Can you spot a cup and saucer or head and shoulders formation, or a triple top?
Good for you, but it's worthless if you can't spot when you are being ruled by your fear or greed, when you are allowing your emotions to make decisons your brain knows are wrong.
Here's an exercise I've been experimenting with lately:
Every time the market sentiment changes due to some hype, some new law, government ban, software update, or forking I ask myself one question: What is the least possible thing that I or anyone else, as far as I can tell, expects to happen?
Then I write it down, if I have time or remember or feel it’s significant enough anyway.
Sometimes I buy or sell based on this insight, but not always. What this does for me is it gets me thinking in the contrarian mindset, against the herd and against those who wish to and who will profit at my expense, if I make the wrong decision and sell out of FEAR or hold too long out of greed that is.
It opens your perspective to new ideas and pulls you away from your emotions, your fear and your greed, just enough to say "hey, maybe there is something out there I'm not seeing, let's give it a shot."
Food for thought anyway.