![]() ![]() So, if BTC dumps by 10%, your capital is gone (as your position was of 20BTC), and the exchange sells your position, which creates huge selling pressure on the market. The problem here is if the markets fall and you have only 2 BTC to make up for the losses. If you see yesterday’s chart where the Bitcoin flash crash happened, the candles kept becoming bigger till the effect subsided (domino effect). ![]() So, basically, if the markets pump 10%, you double your money. Now, as prices go up for every 1% increase, you make 10% gains on your original capital. Assuming you settled for a 10x, now you have 20 Bitcoins which will be your position (long in this case). You tell them, here are 2 BTC for which you can get (2-100x) leverage. Let’s say you have 2 Bitcoins, but instead of holding does for 5 years, you want to double your value now at that time, you take leverage from the exchange. To explain that better, let’s first understand what leveraged trading is. To flush these people out, whales dump the market, and as prices start to fall, we see a domino effect. When prices keep going up, many investors open up highly leveraged longs, which give them immense profits. So, as I said, not everyone in a market could profit, and the same goes for the crypto sector. No one can prove it, but the data and the theories make it understandable. What happened to the crypto markets yesterday?Ĭomplete market manipulation! Yes, you heard that right. So, people take profits at specific prices while new people also enter. More often than not, if markets don’t correct themselves from time to time, we see a rather significant fall. ![]() We see minor corrections from time to time which keeps the market stable. This is also the reason that markets don’t keep pumping parabolically. But it doesn’t happen, and in general, some people lose money while others make profits. This means for everyone to make profits we will need new investors in the market all the time. In any market, be it crypto, stocks, commodities or anything else, money moves from hand to hand. How does a market work? Just a chart showing how a market moves Yes, they did recover a bit, but still, the losses were huge, and it begs the question, why does it happen? Let’s take a look. Even altcoins saw devastating losses yesterday. From $3,900, Ethereum reached $3,000, and on the other hand, Bitcoin nearly reached $43,500k in the flash crash. The market was seeing a free fall as if there was no resistance. Even yesterday (7th September), the same thing happened. It does seem surprising when everything is in green for a long time, and suddenly we see everything crashing. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |