What Could Be Happening Behind the Scenes Right Now

13 พ.ย. 2022

Market capitulation or flash crash isn't new and we should not be shocked about huge price dumps. One needs to embrace the worst case scenario and protect the portfolio or assets during such an event. Now, since the BTC price is still staying low, it could suggest the market participants are not ready to provide the liquidity so far. When the BTC price stays low for a long period, this can put more pressure on other investment houses who usually leverage their assets as much as 10-20x. Banks could afford to take such a large risk as they are backed by their central banks to bail out their loan collateral when the market tanks. However, there is no clear support structure for the crypto investment firms for an immediate bailout loan, so they may be forced to deleverage their loans by selling their remaining assets, especially during the quantitative tightening period now. Therefore, there could be more selling pressure in the near term imo. I am just preparing for the worst and staying calm during that period.