Posted on 06/18/2022 3:11:09 AM PDT by zeestephen
The price of bitcoin fell 9% in 24 hours to $19,217 according to Coin Metrics data...Crypto investors are grappling with aggressive interest rate hikes from the U.S. Federal Reserve and a worsening liquidity crunch. [Half an hour ago, BTC was at $19,040]
(Excerpt) Read more at cnbc.com ...
While BTC will fluctuate, like any market good or evil, I cannot imagine any circumstance BTC will 'bounce' back up to its high (in the neighborhood of $66,666.66).
“At a time of inflation, when US dollars are weakening daily, you would expect Bitcoin to be gaining strength. So I don’t understand what is driving it downward.”
I keep wondering the same thing about stocks, people are selling stocks and rushing to cash? Which is losing ~15%/year due to inflation. Do they think that is safer?
Or is it just people selling assets to cover bills? (needing liquidity). Is that also crushing cryptocurrency?
Money can be destroyed when people can’t pay debts. I get that, but where is all the store of value going with the stock market, crypto and PM’s going down? is it flowing somewhere else or being destroyed?
Maybe someone with more knowledge can explain.
Cryptos were created to fund illegal activities without detection. It is past time they died.
As I write this, Bitcoin is once again flirting with $18,000.
$19,020 - just a minute ago.
Strange.
My first instinct is to politely correct errors.
Perhaps you should share some of your crypto wisdom?
IMHO with the feds coming out with their own crypto next year Bitcoin can’t be allowed to compete, so they’ll crash it.
Can you imagine the control they’d have if everything is paid for electronicly. All your purchases, your bank accounts, everything. How are you going to buy illegal items? How can you work under the table?
I think many cryto-coin buyers were “true believers” and assumed, in error, that other cryto-coin buyers were to. When, in fact, many cryto-coin buyers were just speculating while they aslo made other investments in tradtional things like stocks.
The “true believers” thought crypto-coin investing was going to shelter them from inflation, shenanigans of the Fed and volititlty of stocks.
But when the speculators starting losing their shirt in stocks, they began selling their crypt-coin to cover their losses, some of which were on margin.
Crypto-coin is likely never to be pure and isolated from the large trends because so many of its investors will not be crypto-coin pure, but investors in the broad universe of investment instruements and when macro-trends are moving so will their crypto-coin investments.
It’s worse when you read their websites and Twitter posts and try to figure out exactly what they do and why you should invest with them. Cartoon characters, game characters, incomprehensible jargon and explanations, obscure cultural references, etc. No thanks. Ya’ll can have my share of all those great returns.
Wow, you did more research than I did.....once I heard Clark Howard say it was a real crapshoot I knew I was out.....then the Dr Phil fiasco just confirmed it.
“So I don’t understand what is driving it downward. Again, I don’t see how it’s been done.”
it’s real simple: the same way any highly-leveraged bubbles burst, particularly when the bubble-stuff has no inherent use-value: the punters panic and all try to sell at the same time as margin loans collateralized by the falling value of the bubble-stuff become due and owners must borrow MORE money or sell ... non-margined punters panic too as they see life-savings that they cannot afford to lose and also must sell ... the result is lots of sellers all trying to squeeze through the same narrow door and the same time when there’s not lots of buyers ... this same speculative bubble collapse has happened over and over again thgroughout history, including tulips, dot.com and housing ... there’s no great conspiracy involved, just ordinary human ignorance, greed and fear unleashed to operate in massive quantities ...
Cue the Auctioneer...
18 dibba dabba dibbe.. do I hear 17’9?... dabba dibbe...
Bears emphasizing. Created by CIA for money laundering, trafficking in drugs, weapons, gold and HUMANS (ie, kids).
Without detection - along with creation of the BTC rules and mechanisms, is the false narrative Satoshi guy as the creator, plus it being open to normal innocent people to buy and sell. The creator's cover. Laundering, plain and simple.
It could die a much faster death, but I think it is being let down slowly to allow for innocents to get out with something. The pace WILL QUICKEN!
$17,752.46 bitcoin right now.....Wow!
Maybe you are right about people being “leveraged”. If people are borrowing to buy BTC then just as happened with homes that were upside down, people just run for the exits. It didn’t occur to my simple mind that people would be borrowing to buy their BTC. Now, tulips, that I get.
Thanks.
https://www.google.com/search?q=crypto+margin+OR+leverage
https://blockworks.co/crashing-prices-expose-bitcoin-mining-industrys-addiction-to-leverage/
https://www.google.com/search?q=crypto+margin+OR+leverage&source=lnms&tbm=nws
I tried to understand it but the bulk of what I could see was the repetitive statement that it is a currency not tied to central banks.
However, it is denominated in dollars.
How you keep score IS THE currency.
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