I personally can’t stand too volatile assets. I remember that at first I was very interested in Bitcoin. It was when it first tumbled to $2,5k. At that time, I thought that it was too speculative. But since I had never tried very speculative financial instruments, I decided to trade BTC. Well, it was great fun for some time, but then it started its crazy ups and downs. I should say that I can’t stand a flat market. I don’t know what to do in such a situation and Bitcoin’s flat can be very cunning. I don’t know how I gathered up my patience and closed that damn stuff at $10K. Of course, I ended up in the green area, but it ate up a great deal of my nerves. Of course, I regret that I didn’t buy it again to sell at $60k, but life is life. Sometimes we overlook things.
I don’t know what to say. Not so long ago people told that big investors pumped a lot in Bitcoin and it would skyrocket to $100k. Now after the recent dive, I’m puzzled, to put it mildly.
I can recall that someday I felt like joining a new broker. I don’t remember the name of that company but I didn’t like that their customer support manager started to make me sign up to solely invest in Bitcoin. As you told, he told me that all major investors had bought Bitcoin and it should keep growing to heaven. But I dislike aggressive marketing and immediately lost desire to sign up with that broker.
Everything is possible. Maybe it will resume growing or maybe not. But I don’t like that an asset is extremely vulnerable to what one person may say even if he’s very well-known.
You mean Musk, right? That’s so crazy that one man can drop the crypto market with a huge capitalization.
Lots of things happened in the recent weeks that could explain the crash
USDT Tether, the world’s largest stablecoin, explained how it manages trader reserves (and most people didn’t like the answer), potentially impacting risk management policies at hedge funds and institutions holding USDT as part of their portfolios. With the underlying assets backing USDT being MORE risky than expected, it’s thought that these companies had to sell off huge portions of their portfolios to rebalance their risk profile.
The DOJ/IRS began investigating Binance, the world’s largest crypto exchange this month
China cautioned that it was banning crypto mining in certain parts of China, with Chinese miners making up the largest majority of bitcoin mining operations in the world. Along with this, certain regions in China started making it illegal for financial services businesses and payment companies to work with cyrpto mining operators. China has already banned ICOs and currency exchanges.
Elon Musk made statements that Tesla would stop accepting bitcoin for car purchases. Not a big deal in the sense of buying a car, but more a negative impact on the idea of bitcoin directly, especially coming from someone with obvious technical skill and the ability to move financial markets
And all of this was happing in the maybe two weeks leading up to the crash.
Thanks for bringing more light on the issue! Yeap, that all makes sense being put alltogether.
I remember that Musk mentioned smth about Bitcoin being not eco-friendly enough, which is why the public opinion got shaken so much. Sensitive topic. Has nothing to do with the buying power of BTC.
Now, none of that could be impacting crytpo prices. The conspiracy theorist say it’s a market selloff created/caused by whales and institutions to drive price down to they can get in at huge discounts before the next bull run.
Even others say the FUD is create by governments, as they scared about the impact that crypto/bitcoin/altcoins/defi has on central banks and traditional finance.
Any verdict on this?
I don’t care about Bitcoin’s eco-friendliness at all. Why on earth should I care about it? Is crude eco-friendly enough? I really doubt about it, but crude feels good and it can’t drop because of somebody’s sudden pessimistic saying.
I have to admit that for the first time in my life I am on the gov’s side. This asset is not backed by anything real. It’s just an outcome of calculations. It grew simply because myriads of folks kept believing in it. I hope brokers like trade.com that offer many cryptos to trade know what they are doing.
The Chinese broke in and decided to give Bitcoin one more kick. They came up with a devastating clampdown on cryptos.
Yeah, I also heard that they forbid cryptocurrency transactions. But that’s not the end of the world. Trade. com offers many other worthy financial instruments to trade: currency pairs, metals, crude, and so on.
By the way, crude is tied to many currency pairs that makes trading them quite predictable. For example, USD/CAD, USD/NOK and others greatly depend on crude because Canada and Norway are crude exporters. Respectively, when crude goes up, it backes Canada’s and Norway’s national currencies and respectively the evergreen buck dives against them.
I have recently learned about this relationship between oil and those pairs you mentioned above. But I heard that USD/CAD is an extremely cunning pair and it’s not recommended to trade it.
Sure, there’s an argument that the USD isn’t backed by anything physical, but then others will say the US Gov’t or the economy of the US backs the dollar. Would you then back cryptos or bitcoin even, if transaction volume started to mirror the large credit card companies?
I think that it’s not cunnier than other pairs. I think that EUR/USD would be the most dangerous currency pair. I don’t see anything special in USD/CAD. It either drops or rises depending on how crude feels.
IMO even nowadays cryptos have got enough powerful and wealthy institutional players that will keep it afloat whatever happens.
Agreed. The institutional money is the difference this go around.
Any ideas on USD/CHF?
As a rule, USD/CHF and EUR/USD go in the opposite direction. Sometimes there may be exceptions.
I strongly advise you to trade USD/JPY if you like to open long trades. The Bank of Japan has been keeping its interest rate in the red for a long time. Moreover, Japan is an active exporter interested in a weak domestic currency. So, it’s much easier for the evergreen buck to grow against the Yen than against other currencies. In general, this pair is far more comfortable than USD/CAD. You will have a less stressful experience.