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

TL;DR

• Whales used news of the Mt Gox creditor repayment to push BTC all the way down to $59.1k, collecting hundreds of millions in leverage along the way.

Full Story

If you buy crypto with your own money, it’s up to you when you sell.

If you buy crypto with borrowed money (aka: leverage), it’s up to your lender to decide when you sell.

…and anyone with an internet connection can see where these ‘forced selling points’ are accumulating, using something like CoinAnk.

So, say Bitcoin is sitting around $64k, and there’s a hundreds of millions of potential forced selling that will take place around $61k…

Large BTC holders (aka: whales) are incentivized to sell a big chunk of their holdings → push the price down to $61k → trigger these forced sales → pushing the price even lower → at which point these whales can buy back in at a discount.

(Essentially moving money from the pockets of leveraged buyers, to their own).

Yeah, well — that’s what happened yesterday morning, with help from the news that Mt Gox (an old Bitcoin exchange that got hacked and went under) will soon start paying billions back its creditors between July and October.

(Creditors that might want to sell their Bitcoin after not having access to it for 10 or so years).

As a result, crypto market sentiment is in the toilet, without any clear narratives in the pipeline promising to shift it.

…other than:

There’s not much leverage for whales to take out below Bitcoin’s current price, but there’s a good $1B+ for them to gobble up above it, at ~$64.6k.

Let’s hope they move things in that direction.