On Dec 22nd, the value
On Dec 22nd, the value of one bitcoin declined more than 12%, down to $95k after over $540M in longs were wiped out across the world’s digital exchanges during the 8 days to 23 December. One key day that sticks out, for liquidation values, is on Dec.19 with some $214 million getting wiped. For context, think of an example where many large bets didn’t materialize leading to a market selling frenzy.
Then in a strange shift,
Then in a strange shift, that is exactly what the marketplace got. The $95K per bitcoin crash was initiated not by sudden low market interest in the value proposition of BTC, rather traders with excessive bitcoin loans could not fulfill on their promise for a gain should the coin maintain its previous momentum.
Therefore when the cryptocurrency slid
Therefore when the cryptocurrency slid 10 grand, every ‘leverage’, or super powered bet gone south, saw someone forced out the market place adding to bitcoins negative sell off acceleration. So that’s about 7 out of 8 days we watched the debit side of ledgers tally up over all exchanges which shows some have taken very excessive risks leveraged trading Bitcoin to the brim.
Then they got sloppy –
Then they got sloppy – perhaps over exuberant because all of that bets couldn’t last or were flawed. A move by Federal monetary watch dog, The Fed, has intensified investors pessimistic sentiment further triggering up volatility to a historic levels. To better understand we consider the Dec 19 shift where despite heavy selling some speculators remain bullish they will find support and so this has contributed further to their accelerated bitcoin selloff spree which began when its coin value nudged toward and then dropped a little away from $100K which was not at all like anything we witnessed even a couple months ago, however it continues like this at our present state – a chaotic, sell sell sell of marketplace trendline.
Then those who could leveraged
Then those who could leveraged too aggressively then failed to handle or predict it resulted in panic closing of loans creating a kind of cascading effect; you know where an avalanche is one loose snow that quickly turns a single snow fall in to multiple foot of down falling snow at top speed until an entire snow drift is clearanced.
For it to stabilise it
For it to stabilise it should move away from excessive leveraged longs being purchased. If things go even south, watchers of BTC predict some hefty declines in line of 35% because currently the asset classes are seeing way too high prices. One prediction is by someone who manages a very famous $8 trillion exchange ETF of mutual funds with almost $7 Trillion funds stating that ETH and other NFT market activity is experiencing irrational behaviour so we wait until the entire madness quell down as for now many just want the coins to take up a down slope trend that gives them higher liquidity when liquidated than this current slope in the slide chart.
However should the selling speed
However should the selling speed up from an already record sale, which analysts estimate have already overtake the amount lost in similar historic market drop trends, should trigger a bit more panic on their part due to the fast sliding of an 8181 to just 2429 at a top 16 trading speed during peak sale frenzy day then we know why the big guy is right!
Source
