The Fragility of Crypto

The Fragility of Crypto

By Anarchiss | Fortis Novum Mundum | 24 Oct 2021


The euphoria of peak market action is upon us. Price predictions abound, talk of a super cycle, green-green-green, blue skies ahead; now more than ever is the time for circumspection. The disruption of May already seems like distant history, but it’s not. What we witnessed then was the fragility of the crypto market, one juicy chunk of FUD plopping down detonating like a sack of rotten meat had everyone stampeding for the exit. Granted the market was over heated and Bitcoin was due for a correction, but it was way worse than it had to be.

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Have there been any lesson learned? Not really, leverage is still rife in the market, influencer hype-bois shilling shitcoins abound, and speculation is rampant. May’s dump was triggered by more Communist Party of China bullshit, and the Elon Musk’s ill-informed proclamation gave the market a swift kick to the balls on the way down. Leverage however was, continues to be, and will be, the bullet to the head. As the market dips a cascading series of liquidations pushes hard. The crash of March 2020 was also exacerbated by over leveraged traders getting rekt.

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What will be the trigger this time? Aggressive stable coin regulation? Ripple Labs losing their SEC case? A meltdown in the traditional finance world? Impossible to predict, but what is predictable is that it’ll be something. The problem with all time highs, and price discovery is that everyone is in profit, so volatility rises as many who were under water are selling out. Speculation also increases since it’s impossible to foresee the peak, and many will careen right off the top.

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Will all the institutional fiat flowing into the Cryptoverse help to stabilize the market? Maybe… Jury is definitely out on the effect that these big players will take when the inevitable crash comes. Many an analyst pointed out that the spring market peak/crash played out like a classic Wykoff distribution pattern, which is standard TradFi shenanigans. Remember that 85% of market moves originate from 5% of the players. Even in Crypto we are at the mercy of the elite.

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The Cryptoverse will mature. It’ll be nice when Bitcoin’s extreme volatility subsides (which has been slowly occurring every cycle) and the altcoins desynchronize from Bitcoin. As use cases segregate then the Cryptoverse will begin to develop “sectors” that hopefully won’t all dump at once. However, we are not there yet, so expect at least a 40-60% BTC correction and alts to be slaughtered with some losing all value and many losing 60-90%.

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Dubious speculation you say, quite possibly. Hopefully the coming fall will not be as deep, or steep as those in the past, but until then keep yer head ‘bout ya, don’t get swept up in all the euphoria. It’s like partying hard out on a sand bar not realizing the rising tide will sweep you far from shore. And most importantly stay away from leverage!

TIME is the most valuable coin and thank you for spending yours reading my post. I hope you have a wonderful day.

>>> Anarchiss <<<

Check out my previous posts:

Paper Bitcoin

Deflationary Bitcoin

Crypto Mystery One

A Peek at Ergo

This is How It Ends. Part-2

This is How It Ends. Part-1

The Nightmare Coin

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Anarchiss
Anarchiss

A discombobulated agent of entropy hurtling the fourth dimension as an incongruous jumble of atoms and their associated energies.


Fortis Novum Mundum
Fortis Novum Mundum

An exploration of the brave new world of Web3 and The Cryptoverse.

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