Bad News: Market Sentiment Is in the Toilet (And So Are Prices)

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In case you purchase crypto with your individual cash, it’s as much as you if you promote.

In case you purchase crypto with borrowed cash (aka: leverage), it’s as much as your lender to determine if you promote.

…and anybody with an web connection can see the place these ‘compelled promoting factors’ are accumulating, utilizing one thing like CoinAnk.

So, say Bitcoin is sitting round $64k, and there’s a a whole lot of tens of millions of potential compelled promoting that can happen round $61k…

Massive BTC holders (aka: whales) are incentivized to promote a giant chunk of their holdings → push the value all the way down to $61k → set off these compelled gross sales → pushing the value even decrease → at which level these whales should buy again in at a reduction.

(Basically transferring cash from the pockets of leveraged patrons, to their very own).

Yeah, effectively — that’s what occurred yesterday morning, with assist from the information that Mt Gox (an previous Bitcoin alternate that received hacked and went underneath) will quickly begin paying billions again its collectors between July and October.

(Collectors that may wish to promote their Bitcoin after not getting access to it for 10 or so years).

Consequently, crypto market sentiment is in the bathroom, with none clear narratives within the pipeline promising to shift it.

…aside from:

There’s not a lot leverage for whales to take out under Bitcoin’s present value, however there’s a great $1B+ for them to gobble up above it, at ~$64.6k.

Let’s hope they transfer issues in that course.