20 billion lost overnight, leverage in crypto market is the culprit of the crash

Rothschild’s words ring as loud as ever.

In the past 24 hours, $2.9 billion worth of assets have been liquidated in the market.

The excitement comes to an abrupt end, the gambler is out, who dares to buy now?

As usual, many will say they saw this coming, and others will even say they know the reason for the plunge.

Some confident analysts will point their finger at the upcoming US election and say that this has increased consumer confidence in the dollar and that is why we are ending the party.

Some will blame the crash on the DXY rebound, saying it proves Bitcoin is viewed as a macro asset (like gold).

Others will confidently point to the U.K.’s Financial Conduct Authority, which warned consumers about the volatility of “investing in crypto assets” before the market pulled back about 30%.

By the way…if you were the one responsible for issuing this warning, would you short this market before issuing the warning? After all, there is no regulation…

None of them is worthy of complete trust. The more confident they are, the more suspicious they are.

We contacted several prominent traders to ask about their performance, but they all declined to comment.

The market went up about 100% in a month and then fell back about 30%, what did people expect?!

The fundamentals remain unchanged.

DEX volumes continue to grow, code is still being released, and the ecosystem is still growing.

The builders have not stopped and the roadmap remains unaffected.

Those who made money quickly are the ones most affected by this pullback.
Those who have added the least value have felt the greatest pain.

The game is not just about longs and shorts, a good investor will diversify his risk. Earn yield on your coins, provide liquidity and profit from trading volume, or by finding a liquidation bot, there are many tools available to manage one’s risk.

However, Coinbase is never usable in such situations.

We are investigating an issue affecting transactions on Coinbase.com and the mobile app. Recently initiated transactions may experience delays in showing up in your Coinbase account. There may also be issues completing some purchases on the platform.
4:14 PM · Jan 11, 2021

The company is expected to go public in its initial public offering (IPO) at a valuation of $67 billion.

Are we seeing market manipulation, or just sheer incompetence?

Whatever it is, it’s an all-too-familiar scene for Coinbase’s 30 million users.

Kraken also encountered problems.

https://status.kraken.com/

We approached one of the liquidation bots and wanted to interview them. Unfortunately, the bot declined, but their owner gave us the following responses on the condition that they remain anonymous.

“People are overleveraging, overlending, driving up their liquidation ratios, they don’t want to listen, they think the numbers are going to keep going up, not paying attention to the fundamentals. Flash loans are Aave’s bread and butter right now — $1.7 billion, imagine you could take 3 basis points (0.03%), that’s $5 million, cash!! They’re eating a lot…
No matter what, you tell people to be careful, they just won’t listen, it’s like 2017 never happened, in the crypto world it’ll take weeks not years for them to completely forget.
They never learn...
”

"Buy when there's blood in the streets, even if it's your own."