The way I see it, investors in 2017 - and specifically in Q4 - wanted to buy Bitcoin and Ethereum for the sole purpose of exchanging it for specific ICO tokens they wanted to invest in.
The buyers of Bitcoin and Ethereum did not want to own Bitcoin or Ethereum.
They wanted to buy the newly issued initial coin offering tokens, but they needed to buy Bitcoin and Ethereum as a short way to get what they ultimately wanted.
The owners of Bitcoin and Ethereum did not want to sell.
They were watching the price of their holdings increase, so why would they? They were also believers in Bitcoin and Ethereum.
Those startup companies that completed their ICOs became whales, which began - as a group - to unload their tokens in December and January, thereby flipping the dynamic of the huge demand for Bitcoin and Ethereum to all sellers of Bitcoin and Ethereum.
Bitcoin and Ethereum go up and down together, and most other tokens are correlated in the same way.
Bitcoin can raise or drop the price of your token, but it now appears that gravitational pull works in both directions.
Previously, all of these coins were correlated to the rising price of Bitcoin and Ethereum, but now it is dragging them down.
Experienced VC-backed entrepreneurs are now working on blockchain startups, which means the population of management teams has evolved beyond the original Bitcoin anarchists.
Why Bitcoin, Ethereum and the Entire Crypto Market Are Down in Value
gepubliceerd op Dec 25, 2018
by Cointele | gepubliceerd op Coinage
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