Bitcoin drops again, proving what a great ‘store of value’ it is. Meanwhile, the S&P 500 was up yesterday. As discussed a few days ago, 3x leveraged tech fund, since early 2014, has done as well as Bitcoin. Bitcoin drops so quickly because it’s too easy for large sellers to manipulate the price.
I still reiterate my target of 6000 and below, and that Tom Lee is wrong.
Right now there is a whale on Gdax unloading. I suspect this is the same seller who caused the price to crash from 11800 to 9300 2 weeks ago (or at least initially caused the crash).
One can compare time stamps of the various Bitcoin exchanges to try to isolate which exchange the selling originated from. A large order on exchange A followed by smaller selling on exchanges B,C, De, etc. suggests it came from A.
But yet again, frog Tom Lee doubles down on his bitcoin 20,000 call, predicting prices will hit the December 2017 highs by the middle of the year. This is now the 5th time in the span of just 3 months he has done this, and every time Bitcoin has gone lower (if correlation does imply causation, the best thing Tom Lee can do for Bitcoin is to just shut up). Although one never be certain about anything, I would be amazed if Bitcoin gets as high as 15,000. There is a huge seller that is periodically unloading and makes the possibility of Bitcoin going above 12,000 very unlikely, let alone 20,000.