According to Willy Woo:
For those who remember the hash rate collapse of November 2017…
Back then, it was the perfect time to “Buy the Dip”.
Well, since you posted the BTC price has recovered about half its loss, and as a Brit I would have had to arise around 04:00 this morning to take full advantage of that (or to have had a limit order in at $52K (for example). The amusing part for me when I was seeking value relative to BTC (pair substitution with other cryptos instead of USDT trades) was that the odd man out was DOGE! Completely unrelated to the general crash, I have just taken a 40% unleveraged gain on DOGE albeit for peanuts in value.
I watched a Bitboy Crypto vid that included, as potential causes:
1 The miner power outages in China
2 The rumour that the SEC or IRS was going to go after companies who had “laundered money by use of Crypto”
3 Turkish government banning crypto use in Turkey
4 The mass and immediate sale of Coinbase shares after the IPO, an inside job to depress the price of BTC, and use the fiat from sale of IPO shares to fund purchase of BTC as the price crashed - the logic being that it was in the news that a high price for BTC meant a high share price for Coinbase, and someone conspired to create the opposite to the market expectation
(Ed. and any other reason the financial news channels will come up with)
I saw this reason also and it doesn’t make sense to me because it was a direct listing. Existing shareholders HAVE to sell some of their shares or there wouldn’t be a market.
The irony of Coinbase going public is that shareholders sold their shares for USD. I thought “fiat was worthless”?
If they truly believe in the future of crypto, shouldn’t they have sold their shares in exchange for BTC instead? It would’ve made sense for them to be the first company to do so.
Not so sure myself, think we may say it much larger correction
On the weekly chart, technical indicators are giving extreme overbought readings. If there isn’t another strong move up to break the recent record high this week, this increases the probability for consolidation or even a correction.