RE: Analyst’s Take On Bitcoin’s Black Thursday
How’s everyone hodling-up out there? I jest, I jest! What a wild past few days we have had, I hope everyone is doing well out there.
Analysts weigh in on Bitcoin’s Black Thursday
“In the wake of Bitcoin’s near fifty percent price plunge on Black Thursday — analysts are split on the causes of the vicious sell-off.
On Thursday last week, global markets experienced a turbulent day of sell-offs as the reality of COVID-19 hit. Both crypto spot and derivative platforms struggled to manage the volatile trading activity. Some exchanges briefly shutdown to meet short term liquidity and capacity requirements.
‘A leveraged washout’
Over the last few years, the launch of regulated platforms like CME and Bakkt has invited a new breed of traders into the crypto asset market – institutions.
Now, as the global economy teeters on a COVID-19 driven collapse, some analysts suspect that institutions have got swept up in a global margin call that has forced them to sell their crypto assets.
“Today proves that institutions buying Bitcoin has a flip side,” tweeted Bitcoin educator Jimmy Song in an attempt to pin blame on the big players.
This idea is supported by anecdotal evidence from retail-focused exchanges, with American Coinbase and British CoinCorner both reporting order books stacked in favor of buyers, and not sellers during last week’s market rout.
But, as economist Alex Kruger pointed out the week before the big sell-off, Bitcoin futures trading volumes on CME had already ‘collapsed’ before the real panic started, suggesting institutions may already have moved capital elsewhere, and thus played little part in precipitating the drop.”
https://bravenewcoin.com/insights/analysts-weigh-in-on-bitcoins-black-thursday
Doing good over here, Savannah! I am hoping Mitt Romney’s idea to drop $1000 in every American’s bank account comes to fruition, solely so I can take that and add $1000 of US Monopoly money into my BitWallet