Long Term Thinking, Short Term Reactions

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The bloodbath of today in the crypto markets has come out of nowhere. Bitcoin fell like $8,000 or so in its dollar valuation in a matter of minutes and the living hell has opened up for quite some traders and investors in the market.

Liquidations have once again screwed portfolios and turned traders and investors from convinced bulls to bears in an instant. I spent almost the whole day today with a friend and we were in the car when a friend of his called and asked what the hell happened?

He didn't said hi or anything else... His account got liquidated on Binance and got stoned about the situation. What do you expect when leverage trade, that was my first reaction. I don't leverage trade and wouldn't encourage anyone to do it. It's too risky...

This flash crash was compared on twitter with the one from March 2020 when covid has hit the markets, but my take is that it resembles more the one from September 2017 when the China ban has pushed Bitcoin down a few grands in a blink of an eye for the market to recover to where it felt from at quite the same pace.

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Same thing has happened today. We don't know the cause of this crash and honestly I don't even think it matters at all. It might be correlated with the S&P 500 or it might be the result of over leveraged traders. I don't know tbh.

What I know is that often times long term thinking has to face short term reactions and I've seen those today while watching the show on twitter and Hive. It's funny how people turn from overly bullish to overly bearish in a matter of minutes.

It's like years and years of technology advancement and mass adoption progress registered by this revolutionary piece of technology is wiped out of the memory of quite a few market participants by a flash crash. Such situations underline the clarity some of us have towards this tech.

If you believe BTC will get to $1000,000 per coin in one day and it will replace gold as a store of value, then such movements shouldn't shake you at all. It's like engaging in a 1,000 mile drive and getting panicked about a smashed fly messing your windscreen. You need clarity to survive the whole trip.

The only man that today has shown nerves of steel has been @taskmaster4450 who's catastrophe of today was the ear on his favorite coffee mug that was broken off last night. It really screwed up his day... That's what I call diamond hands and vision.

Curious how @onealfa has reacted to this crash, but being in crypto for so many years I guess he's seen quite a few similar situations and not too moved by this one. For me it was a show. An interesting one, testing my emotions and strengthening my conviction in this revolution even more.

I've talked crypto the whole day today with this friend of mine, we've compared it with other assets, analyzed this bull market against the previous one and underlined the core differences in fundamentals, blamed leverage trading for screwing potential small fortunes to be made out of crypto and we got back home more bullish than we were before the crash.

The conclusion is that the cycles have probably changed and always comparing the current one with the past ones might not be that smart of a strategy, technology is definitely grounding itself in real life use cases and on the long scale we're going up and up.

Long Term Thinking, Short Term Reactions. That's the narrative of today. That's how I saw people reacting in the market and how I see the market as a whole. But you know what, the market doesn't give a heck about us and the development of this tech is unstoppable.

By the way, we're almost back where we were yesterday price wise, but some of us have really seen their lives before their eyes during the living hell the crypto market has gone through. How did you handled the crash?

Thanks for attention,
Adrian

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30 comments
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I already miss my coffee mug.

Outside of that, ignore price. Unless looking for an entry point to buy, which this is, then who cares. This is a long term deal anyway.

Besides it is crypto, it could bounce back in a week and exceed the ATH. We just never know.

And yes your friend deserved to have his account hammered for leverage trading when he obviously had no idea what he was doing.

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Disclaimer: he's not my friend :D
He doesn't even get this tech very well, but leverage trades on Binance... He kind of deserves. I told him that he could better spend that cash in a casino. He'd probably had more fun loosing the money.

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There was a headline I saw from BBC saying it was caused by China's crackdown on crypto investments but I don't know how true that is.
I think I handled the crash well enough. I'm a hodler so I always knew the bad days would come as well as the good. I see amazing days coming back.

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That China crackdown has been talked about since yesterday. I don't think it's the cause.

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The media likes to always attribute market movements to something. They are wrong 95% of the time (or more). Just another reason to ignore the media, they have no idea what they are talking about.

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always hodl! :)

Agree that the China info had not really any news into it, it is the same for a long and just repetition...

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He he, i lost 500$ on Venus airdrop buying 12 XVS, but I got 12000 governance tokens and one one of its kind NFT. I have no idea what that is worth yet, we will see. Except this, all is good.
How is your portfolio doing?


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I agree with the sentiment that the market dynamics had changed. The recovery pattern may not follow the same trend as before but a recovery is inevitable.

I was and remain unbothered to say the least

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💥Boom💥

Today was truly a great day. A day when all paper hands were shacked down from the trees. When all sheep's (following Elon) were slaughtered. So bloody...

The first serious correction in this whole bull cycle. I've been waiting for this more than half a year. And ready long ago.

My confidence in crypto today is stronger than ever.

HODL - is the name of the game

And buy MOAR when the SALE day comes.

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True, this is indeed the first serious correction in this whole bull cycle. The market kind of needed it. By the way, do you leverage trade?

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No. Never leverage. NEVER.
What leverage trader could survive the drop like today???

And if I trade smth - I do it with a small part of my holdings . Like 5% or smth.

The name of my game is FOUR letter word.

H O D L

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After all these years in crypto it kind of makes sense. I'm not leverage trading either. My first complete bull cycle though...

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How did you handled the crash?

I laddered down the through the dip, buying as I went. It was fun for me. First time I've done anything like that. Only bought a small amount in total but it was still nice to get a bargain. 😊

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I tried like being insane to log into trading accounts, but no door opened for me, so although being live, I was not able to buy anything. But I wanted to BUY ;)

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Although I have experienced many similar dips and crashes, every crash is of course also emotional, especially at these price points. However if you survived thus far in crypto, you learn how to deal with such crashes. Zoom out a bit, look at the bigger picture, crypto is still the future 🤩

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It's really bizarre. Everybody on crypto preaches to think longterm, but it seems like everybody starts running like a lemming the second anytime crypto is mentioned on the news.


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It was very discouraging to see how everything was falling, even the prices of HIVE, LEO and CUB. But storms pass and this one is about to end, rebuilding from the ashes and slowly emerging to something better.

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