What Happened Yesterday Was A Nail In BTC's Coffin
We all know what happened yesterday. There was blood everywhere, fear swept through the crypto community and week hands started selling. It was unexpected and took quite a lot of people by surprise. Today we know more about what caused this massacre, besides panic.
I can almost see the shock on your face after reading the title of my post and can't blame you. This morning I was shown an article on the internet by a skeptic. The mentioned article was claiming that what happened yesterday was a nail in bitcoin's coffin. The article wasn't in English but the language matters less in this case, what matters is the message that the journalist wanted to spread.
We know the power of media, we know how they can spread fake news and cause a lot of damage and that's exactly what happened yesterday, that was the intention of the mentioned article as well.
What Happened
Due to the power outage in China, we saw the single largest 1-day drop in mining hash rate since November 2017.
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The power outage in Xinjiang was a scheduled one, wasn't accidental, which means some powerful people with deep pockets knew about it and also knew what's going to happen to bitcoin mining and what the mining hash rate drop will do to the market.
The panic selling made the price crash, this triggered the automatic sell-offs, those who took leverage got executed and a total of $4.9b contracts were liquidated.
According to some sources, 9,000 BTC was sent to the market before the crash and 20,700 BTC was cashed out after the crash. And all this was a work of art of one single whale.
The other news that contributed to the crash was what I mentioned yesterday, that the US Treasury is going to charge financial institutions for money laundering using crypto. Thar was all we knew yesterday. It looks like it refers to what the Russians did at the 2016 US election, interfering using crypto.
There were probably other factors that have contributed to this crash but in my opinion these two are the most important to mention.
What Happened Yesterday Was A Nail In BTC's Coffin
As I mentioned in the beginning of my post, some journalist, article writers has jumped to conclusions and has started to prepare for bitcoin's funeral.
One thing I've learned in life and in crypto world in general is to trust my instincts, remember the rules and listen to people I trust. Last week I broke the rules for the first time and paid the price. That was probably the best lesson for me that I won't forget. I paid the price, even though the amount I lost was a very small one.
Journalist, article writers and crypto users in general are going to say a lot of things in the future. Free speech is guaranteed (in some countries anyway), you can't sop them speaking their mind, all you can do is be better than them as it is about your portfolio, your money, your future. Acting irrationally on news like I've mentioned above will put the nail in your coffin, not bitcoin's.
If you'd been around crypto for some time you know bitcoin is not going anywhere, it is here to stay. What's happened this year demonstrates that it is getting accepted, institutions are buying and the more time passes, the more crypto is accepted. This is good news and supports what I'm saying.
What We Have learned From What Happened
They say one people's tragedy is other people's luck and this is true. When some are selling, others are buying. At first glance the crypto world looks like a real gold mine, you think you can get rich overnight. Whic is true, you can get rich overnight, it's not impossible, but it's not for everyone. Not everyone can get rich overnight. The whale who sent 9,000 BTC to the market a couple of days ago and cashed out 22,000 a day later knew how to do it. He or she got richer, while others got liquidated. I don't even want to know how many people's life got destroyed one way or another.
Was this an accident? No, it wasn't. Will it happen again? Of course, I'm pretty sure of that. This is how the market works. Ups and downs, ups and downs, we just have to learn how to react to it. Is it easy? Nope, it isn't but we have no other choice. Acting emotionally has its price.
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What Now?
The craze is not over yet, I believe there will be a couple of days till things can calm down. Hive is acting accordingly as it's tied to bitcoin. However, no need to panic, the market needs a bit of time. (Not that I'm an expert.) Every dip is a good occasion to buy. If you have some spare funds, probably now is the time to make the most of this crash.
There's Something
There's one thing I can't get out of my head and that's China's influence in this. I'm not sure how much of the bitcoin mining is happening in China, but this case shows if the Chinese want to cause harm, they can. I truly hope the situation can change in the near future and bitcoin mining in China will mean less percentage-wise.
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Im happy. Hit some nice buy orders and will set them to sell again at about 50%.
There is always money to be made if you are not in a rush or panic.
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That's the whole point of trading.
In every market movement there's money to be made, you just have to know what and how.
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LOL let them FUD I pick up any chance to get cheap Sats the longer it lasts the better! When we hit 1 million a coin in 2024 all these dips are going to look like genius buys
Obviously they can FUD, it's their right. These dips are very good if you're prepared, a great opportunity that it's good not to miss.
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Not that I know much, but I read somewhere that 60% of bitcoin is mined in China. Probably worrisome, isn't it?
It is definitely a matter that needs to be addressed. China shouldn't have that much control. Now the next question is who's mining in China. If Chinese are the miners, then something is needed to be done to lower that percentage, by increasing mining elsewhere. If the majority of that 60% is not Chinese, then they'd better move out of China.
Now I know I'm funny (:P) because there's a good reason why they are mining in China, right? :)
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To make money you have to anticipate the market not react to it. You cant see everything coming but once your schooled to the FUD you just sit back and relax. The more something happens the less the reaction will be. Fool me once, but you cant fool me again.
I fully agree with you. However, what's happening two days ago was not expected.
Anyway, anticipating the is a must.
Thanks for dropping by and good luck 🙂
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This is what happened! OOOF!
It's all over!
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