1 to 3 in above my post
foul play is afoot. What would that look like?
A recent report in Bloomberg revealed that a group of 1000 investors own 40 percent of all Bitcoin. This means that—if even some among that number were acting in concert, they would have the potential to manipulate the market to their whim. These "whales"—investors, hedge funds, and otherwise with enough stake in the crypto market to tip the scale—could easily have engaged in "painting the tape" (creating the appearance of high transaction volume by simply selling and re-selling back-and-forth on small margins) to inflate the value of Bitcoin.
Why would they do that? So that they could sell off at the highest possible price before inducing a crash by selling off mass amounts of their Bitcoin stock. Of course, this can only work so far unless others begin to take notice and sell their own Bitcoin off; that's where the influx of new traders comes into play. By essentially scaring fair-weather fans with FUD ("fear, uncertainty, and doubt) who started buying in on the crypto hype without much study of the market, whales stand to make off like bandits. How? By selling off at record highs, dropping the market to record lows, then buying back in.
This is made even more appealing with the launch of bitcoin futures trading on Cboe and CME, which sets these players up to short the market.
- Hacking & Regulation
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Earlier this month the SEC halted PlexCoin on charges of being an ICO scam, and this week it reportedly suspended trading in The Crypto Company over "concerns regarding the accuracy and adequacy of information" and stock manipulation. Meanwhile, Youbit, the popular South Korean exchange, announced its closure on Dec. 20 after being hacked (purportedly by North Korea), losing 17 percent of all assets.
As an added note, the 'insane' energy costs associated with Bitcoin mining continue to garner negative press as we move into the new year.
There is a chance that the general concern created in these developments has scared off potential investors and even caused existing participants to cut their losses.
- The Bubble Was Real & Crypto Winter Is Coming
The Night King from the Game of Thrones roams Comic-Con 2017 in San Diego, California, July 22, 2017. / AFP PHOTO / Bill Wechter (Photo credit should read BILL WECHTER/AFP/Getty Images)
Of course, there could be some truth to all of the above, and together are amassing to the bubble pop that many have been warning users about for months.
The argument against this being a sign of crypto winter is that we've seen this degree of volatility in Bitcoin all throughout 2017 (and even prior). The difference now is that the sheer volume of players is a full exponent greater than it's ever been—and many new participants have no experience navigating these types of markets, making them more sensitive to the down moments.
If we are entering the crypto winter, the past eight years of Bitcoin has revealed two things: 1) that Bitcoin always bounces back—and with it, a whole roster of cryptocurrencies (with inevitable casualties along the way), and 2) the demand for decentralized currency and blockchain technology is here to stay. Some might urge you to cut your losses now before the supposed winter blusters in harder. Others might say it's just another hump in the road.
Editor’s Note & Disclosure: The author participates in cryptocurrency markets. Neither the author nor Forbes endorses participation in any token sale or cryptocurrency investment, all of which have significant inherent risk. Seek advice from a financial advisor as well as do your own due diligence before considering investment.
Source from :- https://www.forbes.com/sites/theodorecasey/2017/12/05/distracted-driving-will-stop-when-cars-drive-themselves/#5dd7ad7d6c15