The facts:
There is little cash flow in, even if the price keeps raising, there is little to no new money coming in the market.
How this can happen ?
- Let's oversimplify, Bitcoin worked as a USD aspirator until the bag got full...
- Then speculators do a mini dump to a nearby trust floor level
- They buy back cheaper and increase the volume just by circulating capital.
- With the earnings, they pump the price of a small coin
- People who bought BTC at a high price follows to try and profit from this pump
- The speculator / manipulators then dump and small investors get trapped in the small coin
- With the proceedings they go back to BTC/USD market and reinforce the wall.
Remember:
- Smaller coins have smaller market caps and are easier to manipulate.
- There are coins where the issuers and the people buying actually believe in the asset. (Value seeking investors)
- On the opposite side manipulators wont care and will pump or dump whichever asset they fanzy because they need to make room to continue the BTC bull
Advice:
- Understand what the vocation of the coin you are investing in is.
- If a coin does not back a tangible project then it is just a manipulation asset avoid it.
- Believe in the future of the coin you are putting your dollars in.
- Avoid Coins that show a 1 to 1 Pump/ Dump relation.
- Keep coins that show more pumps than dumps.
Don't take my advice
I moved out of bitcoin when the price hit 11800, I put half in USD and tried to profit from what looked like a building pump in steem, which is the asset that is useful to me.
I fell victim of a dump, but i trust my fellow steemians and even if i bought steem overpriced i still want to beleive in the future of the platform and have trust that the stake-holders will bring their stake back and drive the price high once again at the first sign of BTC crash.
If this happens we can feel safe and trust that the capital in STEEM is in the right hands.
In any case if you are a small author, earning sbd at this moment, exchange them into steem, power up and increase your stake and support the direction of the growth of the platform.
We are long due for a correction, but big market actors and overconfidence keep driving the prices higher.
I am interested in hearing in which Coins/ Assets you consider a safe haven in case of a BTC crash.
"People has not yet understood that coins are the dreams of someone made public in search of help (capital)"
Nathaniel Narvaez
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