By cryptogardens | Crypto Banter Notes | 19 May 2021

Did We Just Crash Into a Bear Market?

Ran says that this is the biggest crypto correction since 2017. He's also telling us to not panic sell while the market is in all out fear.

  • 10,500 BTC were liquidated today.


  • The Coinbase exchange is having issues causing sporadic outages for traders.
  • Binance stopped trading in leverage tokens (BTCUP / BTCDOWN).

CryptoBirb says that this correction feels a bit unhealthy. As a fractal pattern it looks like the March 2020 correction. CryptoBirb expects a mean reversion as we regain momentum to the upside.



Based on his favorite indicator (unrealized profit and loss) he still thinks we’re in a bull market. There’s been a lot of coordinated fud from places like Elon and China.

What Caused this Crash?

Ran sees 4 major factors causing this crash:

  • Ran agrees that China fud is cratering BTC. Ran believes that because China is launching their digital yuan currency, they don’t want competition from Bitcoin.
  • US tech stocks are crashing, and many see BTC as a tech investment.
  • The US Office of the Comptroller of the Currency (OCC) has a new head, Michael Hsu, who now wants to take a second look at rules regarding stable coins.
  • BlockFi had paid out some bonuses as nominal BTC instead of dollars, which meant some customers were being paid hundreds of BTC instead of hundreds of dollars.


This is potentially a multi-billion dollar disaster of a mistake by BlockFi, and now they’re threatening customers with legal action if they don’t give back the BTC. And some customers are reporting that their ability to withdraw has been suspended even though they're not part of this glitch. That's a possible indication that BlockFi is panic-halting withdrawals until its accounting department catches up.

Guest George joins to add his thoughts on the crash, noting that this feels like when China first banned Bitcoin. Much of this dump is fud related, and George is particularly suspicious of the Reuters timing of posting their China-related fud.



Unfortunately, the retail investors who got in during the past 5 months have been hurt the most. Ran thinks that these past few months have been too easy. Too many people have been getting easy 10x / 100x and we’re going to have to start working harder for our gains.


George thinks that too many people are 1) over-leveraged 2) playing the shitcoin casino and hoping for a 100x in projects with no future. George in particular thinks that leverage pours gas on the fire as leveraged traders’ liquidations add sell pressure on the way down.

What's the Near-Term Future for BTC & Crypto, Bullish or Bearish?

Ran believes there’s no fundamental reason for Bitcoin to go lower than this. George also thinks nothing has fundamentally changed - inflation is still here and institutions are still buying. 

Ched is looking at the EMA 200 and expects the bull market to hold as long as this trend line is respected. Sheldon expects buyers to come in and push the price of BTC back up. Ran says that he’s buying again, and the only thing he’s really worried about is the stock market tanking and dragging crypto along with it.

Defi is not going away, exchanges are not going away and oracles are not going away. These are the fundamental building blocks of crypto. Ran implores his listeners to stay in these good projects and just chill until the carnage is over.








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