Today the cat dragged in an interesting chart that smells of whales fat. Honestly, if you feel uneasy about markets today I can't blame you, I'm uneasy too and even my cat is all tense. But before you make a decision, take a look around, what players with more too lose are doing.
Here is the chart, that made me hold my hand before hitting sell on BTC and ponder:
If you have 100 BTC know I envy you. But I guess you probably don't, so please humor me and imagine you do. Or for the better effect imagine you own 500 BTC. So since BTC dropped from $50k to $45k you lost 2 500 000 USD. Better, if you bought BTC around $60k you lost 7 500 000 USD. Sounds pretty painful. Yet, according to this chart, you are not despairing, you are actually looking to get more BTC... This chart doesn't show anyone, who has currently less than 4,5 mln USD in BTC and do you see what guys like this do? Apparently they buy. So isn't that silly that I'm afraid to even hodl what I already have? Yes, the price lost momentum and the inflow to the exchanges is substantial right now. But it seems like its not institutions or wealthy individuals that are selling. So next time you are threatened by semi-succesful car salesman, don't be - he is not the only one from the fat cats who has money in BTC.
BTW miners are also not selling - accumulation continues.
It still puzzles me why someones tweet can rock such a big boat so easily. I was hoping that after all those record in market capitalization, this crypto tech would be more serious. Do you see for example all the front page news about BTC Taproot upgrade? Me neither. All I see is drama and pumping more emotion into already not very rational markets.
Unfortunately we are stuck in a web of correlations - crypto tends to react similar to broad equities market, especially stock market, despite the fact it fundamentally present completely different values. Inside crypto-space even top projects can't come out of BTC shadow and stand in the light alone - every time BTC shows weakness most of the market trembles. So I cant't stop watching this behemoth, despite the fact that % of BTC in my portfolio is steadily dropping. And it looks like BTC or DOGE are no different (to this cat's despair!) - few tweets or unconfirmed rumors and the market crumbles. At least looking at the moves of big players gives me some relief - they seem to make more sense than broader market.
Now don't get me wrong - there is nothing wrong in taking profits (selling to stablecoins or fiat). We are here to invest and so it is inevitable that at some point we all plan to sell something. I did and I plan to continue doing that gradually. If you think the time is right to sell (or buy) by all means stick to your trading strategy and no matter the choice you make I wish it is the right one for you. But please, let it be your cool thoughts and even colder calculations guiding you - never panic sell, never FOMO buy.
May you see through FUD as a cat sees through night
CryptoCat
All tips go to cat treats and catnip 😻
This is not a financial advice – I’m no financial adviser, nor is this a legal advice – although I’m a lawyer. This is no advice at all, seriously, don’t take advice from random cats – the Internet is full of them! DYOR!
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