Noticing that before btc moves a great deal in either direction large transfers are taking place on the blockchain from wallets to exchanges and vice versa. Noticed athis yesterday before bitcoins major decrease and again today. I am speculating that the large transfers increase or decrease liquidity on the exchanges effecting supply demand ratios thereby causing a fluctuation in price.
While i could be wrong… assuming that the exchanges are already heavy capitalized. I wonder what else could cause these swings in price movements of virtual currency? Please let me know what do you think?