The way the crypto market operates, (a) in absolute lockstep synchronized; (b) same effects over every coin without any connection to any news, or events, or individual coin situations or any other external factor — for 6 months we’ve heard every explanation and excuse from “Chinese people need to buy New Year gifts” (LOL) to “some cheap ass unknown Korean exchange had a few altcoins hacked” — we’ve heard every “explanation”. But to me, this market is being controlled and killed by one factor: AUTO TRADING BOTS. Look at the evidence: the market goes up (in absolute lockstep) by say 6% — then, within 48 hours, it will go down by just a tad more, like 7%. Then up by 5%… 48 hours later, down by 6%. Yes there have been a few bull trap runs but overall this has been the pattern EVERY. SINGLE. TIME. Which produces an overall downward ratcheting effect (~800+ billion down to ~250+ billion, so far…). Clearly these algorithms, operating in vast swarms across the top hundreds of cryptos are operating ALL IN LOCKSTEP according to an extremely primitive algorithm — selling when their little pea brains detect an X% upward swing, and buying when they detect a Y% downward swing. They are like a savage parasite that relentlessly bleeds out, drains, and kills its host over time, like the Ebola virus or something.
Now people talk about the flood of institutional money lining up at the gates, once there’s “regulatory clarity”. New exchanges are opening hourly. New projects, ICO’s. Trading services, index funds, derivatives — all this supposedly gearing up, the “infrastructure” for the next bull wave. But all that infrastructure might turn out to be just a Chinese megacity, those that are left as half-built, rotting concrete monstrosities, ghost towns of inhuman space alien scale, with not a (human) soul in sight on the vast miles of skyscrapered canyons. The only sound is the desert wind whistling through the paneless window frames.