These are all observations combined with my opinion (I could be completely wrong or off base and appreciate constructive feedback or counter-bias if offerred).
Why I think we are seeing an emerging bear trend
SK bitcoin exchange being hacked will likey put price pressure downward
Cryptocurrency miners actually colluded to pump the price so that an exit could be made now, just prior to Aug 1st.
This past bull market (from 1700 to 3k) was always manipulation to generate false positive sentiment ie: there were no new technology/products powered by cryptocurrency that provided practical benefit and earned critical mass in user participation.
What we do know of market impacts
There has been a long prevailing bull market for several months
Altcoin price with the exception of the top substitute will follow Bitcoin price movement as society deems it easier to compare value using fiat.
Alphabay Takedown likely convinced many DNM vendors to exit from crypto for the time being (until a new market leader is established for them to utilize) - cashing out into fiat as a result.
- Markets do not have nearly the volume that typical securities markets such as stocks and forex have - far easier to manipulate order books and cause flash crashes. (these can be counterbalanced by other traders who profit from poorly executed manipulation attempts)
Now what?
Dollar cost average the purchase into more coin. Spend that same coin and replace it with the cash you would have used to buy the good you intend on purchasing. Continue to accumulate coin and use it as a tax offset - if the market crashes greatly, cash out a portion so that you can realize an actual loss - use that realized loss to offset your tax liability. < this won't work unless you sold the coin for fiat (holding it and reporting it is not a realized loss because you still hold the commodity). Continue reading, and make your own conclusions (don't just take my word at blind faith).
