100:1 leverage bets got BTFO this evening, as BTC flash crashed from 60k down to $51k in a matter of minutes. The event was surreal and it took everything down with it. ETH touched down under $2k and I had the opportune to buy more. The alt-coins got submerged in shit and are still dragging lower.
Why did this happen?
You can thank DOGECOIN and the entire SHIT-COIN complex taking off in recent days that defied logic. Into this recency rally, BILLIONS were leveraged — the largest in history — causing the sell off to cascade and snowball. The dislocation in BTC was most representative by the price fluctuations between the exchanges. BTC was trading $2k higher on Coinbase than on Robinhood tonight. Almost every exchange has lower prices than Coinbase. Litecoin went from $290 to $220s in a matter of minutes and then short-squeezed the fuck higher to $295, only to then slide back lower.
What happens next?
If this were a stock market flash crash, I would all but guarantee a retesting of the lows. This isn’t the stock market, so my confidence level isn’t there to make such a prediction. I will say, without doubt, there is now PRICE MEMORY above here, as normies got blown the fuck out tonight and just want their money back. They’re not used to major paper losses and do not want to see the lows again, so they’ll be selling over the next few days.
Bottom line: if you’re like me, buying every first of the month like a robot — this sell off is a gift. We buy more ETH and we’ll trade some SHITCOINS when the momo comes back. I saw this coming and the sell off was warranted — but it’s not over yet.
If by Tuesday we are back above $60k, you can declare the worst to have passed. If we’re wallowing in the mid $50’s — beware of another rug pull.Comments »