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Friday, March 29, 2024

Panic-Selling Turns To Buying-Scramble As Cryptocurrencies Recover Dramatically

Courtesy of ZeroHedge. View original post here.

Update 1600ET: Thanks to some serious dip-buying, the landcape across cryptocurrencies is not as completely devastating as it appeared this morning…

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Update 1300ET: Bitcoin prices have somewhat stabilized for now around $13,000…

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Update 1245ET: GDAX is down…

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Update 1220ET: Mike Novogratz has shelved plans to launch his fund, warning that: “We didn’t like market conditions and we wanted to re-evaluate what we’re doing…I look pretty smart pressing the pause button right now.”

Warning traders that Bitcoin may drop as low as $8,000 in the near-term… but the bull market isn’t over.

Bitcoin prices are higher since his announcement…

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Update 1202ET: Coinbase is down

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Update 1045ET: Andrew Left of Citron Research has covered his GBTC (Bitcoin Trust) short.. as the arbitrage spread to futures has roundtripped…

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Update 1025ET: Bitcoin Futures have resumed trading and the BTFD’ers are in control – ramping Bitcoin back above $13,000 from near $10,000 lows…

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Update: 0950ET – CME’s Bitcoin Futures Contract was halted limit-down (down 20%) at $12,265 at 0945ET…

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Following the most aggressive drop in Bitcoin in almost three years (plunging 37% from its highs in 5 days)… Bitcoin is now down over $9000 from its highs…

Back to a $10,000 handle…

And then it was suddenly ripped $2000 higher…

Every bounce is sold…

However, today’s collapse isn’t even particularly eye-catching on a logarithmic scale, used to compare relative percentage-point sizes of moves.

At least three times since 2010, the first year for which Bloomberg prices are available, bitcoin has retreated more than 70 percent from record highs. Caveat emptor.

Surveying the damage this morning is nothing short of a bloodbath…

Source

If one looks carefully, one can find a few glints of green – Tether, NXT, Komodo, Bitcoin Dark, and SmartCash but they are all microcap.

Futures and spot fell together with various circuit-breakers kicking in…

Some have argued that this was a key technical breakdown of the exponential uptrend…

These kind of drops are not entirely unusual, Bitcoin has crashed by over 30% in every quarter since its inception…

In fact, drawdowns are very much business as usual…

As Reuters notes, for the week, it was down around a third – its worst performance since April 2013.

“A manic upward swing led by the herd will be followed by a downturn as the emotional sentiment changes,” said Charles Hayter, founder and chief executive of industry website Cryptocompare in London.

“A lot of traders have been waiting for this large correction.”

“With the end of the year in sight a lot of investors will be taking profits and saying thank you very much and closing their books for the holiday period,” he added.

Ethereum is also getting crushed…

Interestingly, Ripple, the third-biggest, has more than quadrupled in price since Monday.

“A lot of the capital is flowing from bitcoin into alternative coins,” said Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers in Sydney.

But it’s not just the underlying cryptocurrencies that are bloodbathing. Various companies that have changed their names in recent days/weeks to try and capitalize on crypto’s rise are in trouble this morning…

Riot Blockchain, Long Island Iced Tea (Blockchain), Net Element, and LongFin are all crashing in pre-market…

…Meanwhile, the newly christened Long Blockchain revealed in an SEC filing on Friday that it had secured a new loan agreement with Court Cavendish, a lender trying to expand its technology portfolio, according to the filing. The company received a $2 million loan, with the option of increasing it to $4 million with the consent of the lender.

The loan is secured with warrants…

Long Blockchain, née Long Island Iced Tea Corp, has a new loan with some, uh, interesting terms: https://t.co/1sImykVUr3

— Charley Grant (@CGrantWSJ) December 22, 2017

Stephen Innes, head of trading in Asia-Pacific for retail FX broker Oanda in Singapore, said that there have also been moves out of bitcoin into Bitcoin Cash, a clone of the original cryptocurrency. Oanda does not handle trading in bitcoin.

“Most of it is unsophisticated retail traders getting burned badly,” Innes said on bitcoin’s recent retreat.

Finally, many are noting the recoupling ion the relationship between Bitcoin and Gold…

Which comes first? Bitcoin $10k or Gold $1300?

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