iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,474 Blog Posts

CRYPTASTROPHE!

Markets are applying maximum levels of hurt to the crypto space right now, just a few days after the CME and CBOE opened up futures contracts on the awesome currency. You fuckers have no idea what you did, letting the bastards from Wall Street into your den. You’re all zebras, ‘bedroom billionaires’, playing making believe with your birthday money and maxed out credit cards. The institutions of Wall Street have unlimited resources and will now build exotic derivatives that could be levered 50 times to fuck you every way but loose.

Your hubris allowed you to believe that Wall Street could not phase you.

Say that now.

The Bitcoin ETF, GBTC, is now down 65% over the past 3 days.

I’m taking a bruising on some of my proxies, but my level of involvement has been greatly reduced, as I’ve been taking immense amounts of profits the past week. Just yesterday, I booked a 344% gain in NXTD, which is the only proxy play up today.

Across the board, there are 10-20% losses in the crypto-proxy space. I am tempted to sell out of the few I am long, fearing this Bitcoin crash will have immense ripple effects. After all, there is maximum amounts of damage being done now — coming off from a crypto market cap of $650 billion — now reduced to a little more than $400 billion. The tops always attract the most people and all but negates any gains enjoyed in the sector over the past year. There have never been more people exposed to cryptos than now. There $250 billion loss in wealth is more than double the entire crypto space at the beginning of the year.

Think about that.

Nevertheless, this is a new asset class that has proven to be resilient. Since my exposure isn’t too great and most of my money secure in my Quant strategy, I am willing to wait until next week to decide what to do with GSUM, NXTDW, QIWI, PYDS and FH.

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19 comments

  1. rangersfan

    Buy them

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    • numbersgame

      Really? Buy *them*? As is all cryptos are equal and a bubble isn’t evident? Classic 1999.

      Do the hard work, know what you are buying, and hold it for the long term.

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    • riza

      NTFL another proxy play holding up well last two days too. They were underwriter for LFIN IPO and several other crypto stocks.

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  2. sarcrilege

    my apologies, ..so it turns out Fly was not peddling fake news after all yesterday

    …[Trump] just commuted the sentence of a fine rabbi who was supposed to serve 27 years for bank fraud,..

    https://tinyurl.com/y6wovsyd

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  3. Marc David

    I think very low XRP prices help Banks if that’s what they choose. It won’t be a token of value to trade but just a token as a means of monetary transport. Less volatility and more useful. Washing out the gamblers would be helpful I’d think to this particular one.

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  4. Angel of Death

    BTC’s obituary has been written many times over the years. This could just be the slingshot it needs to rocket to an even more absurd price. The drawdowns near market tops are always insane, and then the rallies off those drawdowns are even more insane. Peter Schiff pronounced BTC dead yesterday, so I’d say we probably make a new high.

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    • sarcrilege

      Down $9k from it’s high, bounces off $10K to above $13K – and all that w/i hours, if not minutes. That’s penny stock pink sheet bullshit insider shenanigans right there. Pump and dump – except the exits are too small even for insiders.

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      • Angel of Death

        I agree man. There is no liquidity, which is why when a large seller emerges it wrecks the entire market.

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  5. og

    I guess the Litecoin founder is pretty smart.

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  6. numbersgame

    I will say that the timing (but not the magnitude) of this plunge caught me by surprise.

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  7. ericbakerbruce

    Boom

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  8. og

    I feel like many family members and friends will be teaching each other how to buy cryptos during Xmas.

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  9. tune in

    NXTDW, @ exercise price 32.88? Fly, thoughts on strategy with this one?

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