DAMN..... bitcoin crashing hard

[YAX]

Bitcoin is definitely here to stay, but I'm sure, by now many people have a bad taste in their mouths.  Buying it at the high prices only to lose half their money.

[DuMa]

Need more governmental regulation.  The only bit coin yall be buying is the ones that the government is growing.   You can buy it from their centralized bank where the state's government has control over it.  Kind of ruin the purpose of piracy but at least it is backed by something.   

[hmgROCK]

so we going buy some bitcoin or not?

[DuMa]

so we going buy some bitcoin or not?

You take the lead.  I'll buy 1 cents worth and cry when she's down 50%   

[theking]

so we going buy some bitcoin or not?

Little surprised the "hmong Nostradamus and is always right" doesn't know the answer to his own question...


NOT! 

[hmgROCK]

You take the lead.  I'll buy 1 cents worth and cry when she's down 50%   

Its here to stay, man
I don’t see it going away

Can’t beat them
Join them

[hmgROCK]

these bitcoin folks are leveraging the shyt out
basically they have $1 in their account
and using that $1 to take out $100 loan to buy bitcoin

 

if bitcoin start tanking
you going have a big problem

espcially if you can't cover
might have to sell your kids and wife and kidney


 

GOOD LUCK PLAYERS!!!


https://www.cnbc.com/2021/05/25/bitcoin-crashes-driven-by-big-margin-bets-new-crypto-banking.html
When traders use margin, they essentially borrow from their brokerage firm to take a bigger position in bitcoin. If prices go down, they have to pay the brokerage firm back in what’s known as a “margin call.” As part of that, there’s often a set price that triggers selling in order to make sure traders can pay the exchange back.

Brian Kelly, CEO of BKCM, pointed to firms in Asia such as BitMEX allowing 100-to-1 leverage for cryptocurrency trades. Robinhood does not allow traders to use margin for cryptocurrency, and Coinbase only allows it for professional traders.

“You get this crowd factor — everybody’s liquidation price tends to be somewhat near everyone else’s-- when you hit that, all of these automatic sell orders come in, and the price just cascades down,” Kelly, told CNBC.

Bitcoin traders liquidated roughly $12 billion in levered positions last week as the price of the cryptocurrency spiraled, according to bybt.com. This mass exodus wiped out about 800,000 crypto accounts.

“Selling begets more selling until you come to an equilibrium on leverage in the system,” said JMP analyst Devin Ryan. That selling begins to “compound” as leveraged positions are liquidated, because they can’t meet those margin requirements, he said.

“Leverage in the crypto markets — particularly on the retail side — has been a big theme that accentuates the volatility,” Ryan added.

As the crypto market expands, Ryan said he expects leverage to become less of an influence, especially as more institutional capital comes in.