The last several months have been an absolute bloodbath for Bitcoin, Ehtereum, Litecoin and hundreds of other cryptocurrency Alt Coins.
Experts have provided a wide array of reasons for the crash including regulatory headwinds, market distrust and a correction resulting from a price rise in 2017 that was too big and came too fast.
But one theory now circulating in the blockchain community is that some very big insiders may have gotten wind of coming news that the rest of the market is not yet privy to. And those insiders could be rapidly unloading their Bitcoins to seek safety in traditional currencies.
A number of crypto analysts and enthusiasts have weighed in on the possibility:
It really does feel like insiders know something that the rest of us will find out soon enough. No real catalyst in the news to trigger such a sell off. And yet people with deep pockets are dumping anyway. https://t.co/2KzO3U5tYI
— Ian Panchèvre (@IanPanchevre) March 29, 2018
Regulators warned them theyre coming in swinging
— Joshua Zeidner (@Joshua52438407) March 30, 2018
People on cryptocurrency forums are starting to ask for more regulation. They now blame the “Whales” & manipulative banks for their woes more than “FUDsters”.
— Nancy Nakamoto (@NancyNakamoto) March 29, 2018
But not everyone is convinced of a grand conspiracy involving insider knowledege:
It’s just TA driven. Bots playing algorithms probably.
— kristof [knife catcher in the rye] 🔪 (@Triggeronomics) March 29, 2018
But the whales are buying more… Just check the wallets. People with money are buying. People who invested their loans and rent money are selling.
— Satireoshi (@satireoshi) March 30, 2018
— Bruce Wayne (@wayneblockchain) March 30, 2018
to me this just looks similar to post mtgox crash charts.Price correction after bubble took about 14 months in total.
— Iain (@7iain7) March 29, 2018
its a techinical move. the lack of fiat inflows and liquidity, plus no real utility for btc token are driving the price downward to 2017 first semester. Can you imagine what would happen if pathetic “hodlers” start to sell it? THERE IS NO FUNDAMENTALS!
— guizmao (@guizmao_gcr) March 30, 2018
Sort’vre goes against the last tweet of people blaming magical whales…. my bet is a) everyone assumes tether is bad now combined with b) tax season has lots of people on the sideline which is creating momentum on the sell side
— Ben Jarvis (@ronmexicoisreal) March 29, 2018
To say big money whales have inside knowledge or are engaged in the down-ward manipulation of prices so they can acquire more before massive amounts of institutional money moves into the space would be speculation at this point.
While prices may continue to slide from here, with some analysts going so far as to predict sub-$5000 Bitcoin, others suggest that the recent drop in price could be an opportunity for long-term investors:
When my YouTube comments say “get out now”, it’s probably time scale in.
When my YouTube comments say “I’m rich and buying a boat”, it’s probably time to scale out..
Right now, we’re at the former. pic.twitter.com/0omzQJidFu
— Crypto Bobby (@crypto_bobby) March 30, 2018
Earlier this week financial firm Morgan Stanley noted that the 70% declines are nothing out of the ordinary for cryptocurrency markets.