For all the innovations and good that Cryptocurrency and Blockchain promises, it is not much different from the already established systems. That statement will draw fierce arguments and disdain from many Crypto die-hards. But if we've learnt anything from the Steem failed takeover by Justin Sun, the crash of Bitcoin and so many other activities in the Crypto world it is that institutional forces control have so much power and control so much just like their counterparts do in the traditional financial markets.
A very minute number of big players control the market and can tip it to act in whatever way they want. The Crypto market is really no different and we have seen overtime that a small number of players control a large amount of liquidity in the market and they can directly impact the price. The big players can push the price in such a way that it destroys the speculative positions of the retail traders to make the institutions more money.
In a way the market is more like a fight between the retail traders versus the institutions in the market. Many professional retail traders then see it as a viable strategy to watch these institutional powers, assess what way they might act and use that data and information to inform your decision-making.
For instance, about a month ago a large of traders were almost sure that we were in for a bull run and that prices could go to $15,000. From this we can see that there is a strong incentive for the bigger players to drive the market down. Going against what the major wanted would definitely lead to a mountain of liquidations and state of Fear, uncertainty and doubt, pushing the market down and so these institutions could gather more and so when it went up again they have more to gain and benefitting the big players (just my personal theory).
In my opinion, it is generally safer to assume that the majority of the retailers are wrong. Doesn't happen all the time but most times when the small players are betting in one direction, the big boys are betting in another and you really want to be behind them cos that most times is the winning team.
