Deleveraging in Bitcoin (Crypto) Will NOT Save Christmas!

[wrongway]

when do all the leveraged sh@tcoin etfs begin to fall?

[sumdumguy]

Wrong way, can you imagine how many hopefuls jumped into that pit during the updraft? Same sort of thing happened when the Hunt Brothers cornered the silver market back in early eighties. People lined up overnight to get in on the silver rush only to see it’s trade halted and silver plummet over night.

[TechAnalyst]

when do all the leveraged sh@tcoin etfs begin to fall?

The house of cards is all built around a firm called Microstrategy. Their model was to sell equity as the price of bitcoin rose (thanks to an early base position in bitcoin), using the proceeds to buy more bitcoin and pay dividends on shares already sold. As the industry's largest player, they currently hold about $50 billion worth of bitcoin at an estimated average cost of $74,900/bitcoin.

Investors are getting so concerned about the whole plan falling apart that the market value of the company has recently dipped below the FMV of just their bitcoin holdings.

They have claimed they can withstand a drawdown indefinitely by selling bitcoin to be able to keep paying dividends, but many are skeptical. A mass liquidation event there would likely provide a negative feedback loop with bitcoin, given neither have any tangible asset value.

And there lies the concern. Bitcoin holdings have infiltrated the financial system enough that there could be unintended consequences (and margin call related liquidations) in other areas should it become too much of a meltdown.

My 2 cents,

Mitch

[wrongway]

DEATH SPIRAL.

I can't help but think that the presale condo crash and the sh@tcoin debacle are somehow connected...I guess neither were bought with real money only debt. But everything is purchased with debt these days. What a time to be alive.

[AlbertaFarmer5]

U.S. is losing about 50 thousand jobs a month. This is unsustainable.

Federal government employment is down 9% year-over-year, and 22% (annualized) in past three months as terminations hit in October.

While Canada goes the complete opposite direction, with an ever increasing civil servant workforce.

Which is more sustainable?

[AlbertaFarmer5]

But at least they admit they have a problem. And don't want to solve it:

https://www.ctvnews.ca/politics/article/government-rejects-call-to-measure-productivity-across-public-service/?taid=6941d67ea9731c0001269b22&utm_campaign=trueAnthem%3A+Trending+Content&utm_medium=trueAnthem&utm_source=twitter

[errolanderson]

JAPAN LONG-TERM TREASURY (BOND) YIELDS TESTING HISTORIC HIGHS.

This is tough news for cryptos. A winter bear market for Bitcoin in-progress (IMO).

Japan is the spark plug unleashing a global debt tidalwave. Japan’s ability to generate liquidity into global markets (Yen carry trade) is diminished. The USD is under pressure as the American recession deepens. The loonie is now on-the-rise . . . .

Fed cutting rates no longer has an impact. Horse is long out of this corral.

Silver in a blow-off top on debt market fallout. The top, no one knows.

We are witnessing a restructuring of global financial markets in real time. Where the chips are eventually going to fall will have a huge market impact and fascinating to watch.

Errol’s Commodity Wire, Calgary

[ColevilleH2S]

Looks like Bitcoin has had a nice flat consolidation over the last 35 days. Is now a good time to buy?

[wheatking16]

Looks like Bitcoin has had a nice flat consolidation over the last 35 days. Is now a good time to buy?

IMO

No

[shtferbrains]

Is this real?