When Blood Runs In The Streets What Do We Do?

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When Blood Runs In The Streets What Do We Do?

Being in the game for so long now a day like the last two in crypto with major sell offs is actully a welcomed thing. However to many as you can see when they take to twitter etc calling everything a scam lol. Truth me told if you watch these markets you'll notice a trend or at least areas to look out for. In this article I want to go over the possible causes so you can be aware for next time this happens or even better be primed to stock up on low cost crypto!

Liquidation

Good old futures contracts, for some reason we asked for them and wanted them and now we are paying the price. Sure they bring new funds into crypto but at what cost. When these futures contracts expire they take with them a huge lump sum of money all in one shot. Well Friday was one such day and this blast of funds leaving bitcoin triggers a solid 7% or so downturn. What happens next?

Panic

Panic selling sets in from people who don't follow the markets and for some reason feel the only way is up. While yes in the long term I feel the only way is up many people are short sighted and panic starts to set in. This panic sets in because they feel like they need to get out at a loss before they lose everything! This emotional trading starts to signal a panic sell off which to be honest we are in right now.

Throw in a 3rd negative impact and you're left with a major flash crash that is going to be WAY over sold.

Stock Markets

The buy outs and money injections of two years ago are now catching up to us. Record inflation and businesses still not doing well globally and you are left with a very over bought stock market. What's next a sell off or worse a depression. In fact everything points to depression for the last year but the stock market which was propped up. Sure short term it's nice but longer term you gotta pay for it somewhere. We are now paying for that so a crash in the stock market is also going to signal a crash in the crypto world as a number of stocks now can be bought that relate to bitcoin etc.

The Big Three

Those are three HUGE negative impacts on the crypto world right now. This could end up triggering an even lower sell off than we saw back when china clamped down on bitcoin mining which sent us to Bitcoin at $29,000 and Ethereum under $2,000. Are we headed back there again? I personally believe it's very possible this weekend however we are going to find a bottom next week and hold steady. I don't feel we are in for a rally for the next 2-3 months though as people and economies start to get stuff figured out.

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My Thoughts

Sure it's not nice seeing these flash crashes and watching millions of dollars go up in smoke. But you have to realize the market cap on crypto is still rather small and it's subject to these crashes and rallies because of the huge market caps of outside sources now such as the stock market. You can either fear them or you can start playing the game. For me it's about playing the game and when I see such hard sell of it's time to BUY!

If you're a seller of NFTs etc in that space I actully encourage you to double down right now and sell at the same $ value. This is because you'll actully be getting more crypto for your sales if you're doing a dollar conversion on your NFTs. Hold on to that and the price moons 100% in the next year you just doubled your selling price of that NFT. It's a mindset people :)

*This article is for entertainment purposes only and is not financial advise.

Posted Using LeoFinance Beta



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6 comments
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This certainly looks like a financial advise! Yeah, it feels logical to buy the dip now in my opinion. I think we wont go below 30k. Many alt coins will go down further, so I think it will be great to get into one.

Good analysis! I like it. !PIZZA

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I feel bad for anyone that has lettuce hands right now. It's not gunna be pretty for them. Maybe we see a further dip. Maybe we see a dead cat bounce. Maybe we make a full recovery and go all the way to the fookin moon. Who knows. The key is to remain level and keep earning/stacking.

Posted Using LeoFinance Beta

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The dollar conviction for NFTs is something a lot of people should do. Otherwise people will definitely know you will fold when prices crash and your NFTs won't look so attractive anymore.

Posted Using LeoFinance Beta

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Finance in general is a mindset.

Crypto makes the lines clearer and more bold.

Almost anyone would choose $10k next over $1k now if they’re given the direct choice, but that’s all compounding is. The numbers are more broad in crypto and those returns are clearly visible, not like the traditional savings accounts most of us had to look to.

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