Bitcoin Tumbles $5,000 In 24 Hours As Interest Rates Jump (cnbc.com) 57
Bitcoin fell more than 4.76% on Tuesday to $66,134 amid rising Treasury yields and strength in the U.S. dollar. CNBC reports: On Monday morning, it was trading at about $70,000 before data came out showing growth in the manufacturing sector for the first time since September 2022 and investor bets on June rate cuts began to cool. Bitcoin is now off its all-time high, reached on March 14, by about 11%. Ether went down with it, losing 5.6% to trade at $3,240.27. Meanwhile, the 10-year U.S. Treasury yield hit its highest level of the year and the dollar, which has an inverse relationship with bitcoin, hit a five-month high.
Bitcoin's move may have been exacerbated by a large bitcoin holder, or "whale," who transferred more than 4,000 bitcoin to the Bitfinex exchange late Monday night. Data from CryptoQuant shows a spike in that exchange's reserves -- which typically signals a boost in selling activity -- that coincides with the sudden drop in bitcoin price late Monday night. Stocks tied to the performance of bitcoin were dragged down but traded off their lows to end the day.
Bitcoin's move may have been exacerbated by a large bitcoin holder, or "whale," who transferred more than 4,000 bitcoin to the Bitfinex exchange late Monday night. Data from CryptoQuant shows a spike in that exchange's reserves -- which typically signals a boost in selling activity -- that coincides with the sudden drop in bitcoin price late Monday night. Stocks tied to the performance of bitcoin were dragged down but traded off their lows to end the day.
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Difficult to do when a relatively small number of whales are holding onto a significant portion of the available coins and they aren't selling.
Eventually one of them will blink and the price of the tulips will crash again.
Crypto will continue to be a domain that exists mostly to enable criminal activity and a novelty for most other people.
Good luck with that.
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Difficult to do when a relatively small number of whales are holding onto a significant portion of the available coins and they aren't selling.
Eventually one of them will blink and the price of the tulips will crash again.
Crypto will continue to be a domain that exists mostly to enable criminal activity and a novelty for most other people.
Good luck with that.
At this point a 5% drop in a day makes it a stablecoin. Go look at the stock market, individual stocks bounce like that all the time. I seem to remember a bit over a year ago it peaked at the same price it’s at today. If bitcoin does anything really reliable it’s peak and crash with a period of about 1-2 years. Anyone who bought in at 60 back then near the peak and was called a fool could have sold at 70 just a few days ago and made a reasonable rate of return. If I had to bet I’d sa
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If I had to bet I'd say we are either peaked, or close to it and it will hit 80k sometime before the end of 2026.
You're also betting on that in the interim Bitcoin doesn't get banned for its ridiculous amount of energy waste or that the market doesn't finally wise up and move onto some other coin which sucks less in terms of transaction speed.
Sure, Bitcoin has hung around for awhile now, but people thought the Titanic was unsinkable, too.
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at some point it'll stop mining and at that point it'll be interesting to see who's going to bother to process transactions.... although it'll not be based around complexity at that point so processing will be way cheaper right?
So then wouldn't it make sense to hold until that day? or not? assuming it lasts that long but it's managed to go longer and higher than i ever thought it would.
Re: Is anyone else waiting (Score:2)
Once block rewards have ended, there will be a balancing act between fees and miners. Miners will use as much electricity as they can and remain profitable. So, the biggest question is how much value is being transferred, and therefore how much in fees people are willing to pay.
Even before the reward is dead, I would expect the fees to start overwhelming the rewards. At least if the usage is growing well. And at that point, you'll see the end of major bubbles (caused by the halving).
Once bubbles are no long
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Re: Is anyone else waiting (Score:1)
If you were to buy $100 on Bitcoin every time it hit an all time high, you'd be up like 100x.
This strategy is called momentum investing, and despite all the high falutin talk about "professional" traders and "retail" and "valuation", it dominates the public stock market too.
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At this point a 5% drop in a day makes it a stablecoin. Go look at the stock market, individual stocks bounce like that all the time.
But we aren't talking about a stock, we're talking about a currency. Nobody in their right mind is going to want to accept a currency that might lose 5% of its value from the day they sell you a widget to the day they pay their employees.
Re: Is anyone else waiting (Score:1)
Any merchant running a business in a country experiencing hyperinflation (Argentina, Nigeria, etc.) would have to be out of their mind to NOT accept Bitcoin.
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At this point a 5% drop in a day makes it a stablecoin. Go look at the stock market, individual stocks bounce like that all the time. hold.
However currencies don't and BTC is supposed to be a currency, one we're told is supposed to have legitimacy.
Re: Is anyone else waiting (Score:1)
I'd rather have volatile money which is increasing in value than stable money that is decreasing on value.
And while currencies don't experience 5% daily swings, they DO experience 70% annual declines.
Re: Is anyone else waiting (Score:2)
"At this point a 5% drop in a day makes it a stablecoin. Go look at the stock market, individual stocks bounce like that all the time."
What the Ayn Rand horse shit are you talking here? We don't use stocks as currencies, in part for that reason. If your argument is that Bitcoin is a valid currency because it only bounces as much as stocks, your argument is stupid and we are all dumber for having been exposed to it.
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I hold individual stocks. A 5% change in a day is big, at least with most companies. I just looked, I've got one at .4% down, one at .05% down, one 1.2%up, one at 1.5% up, one unchanged... You get the idea. On a day with an event, say take INTC which I don't hold, it is down 7% due to some very very bad news. I've held INTC in the past though, and a typical day at Intel is less than 1% change.
It’s not that unusual at all. I used to hold MRNA, got in at 130, sold up to @400 and got out my remainder at 130 again. It just dropped 5% today. News that interest rates are changing is quite a time honored cause of stocks changing value quickly.
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Depends greatly what you hold and when. Unsurprised a vax maker would be volatile during covid. You posted it was common. I submit it is not common. You can find volatility if you want, but the majority of stocks trade on actual earnings, and those don't change day to day. Meme stocks on the other hand, like the latest crazy, djt. You can find them, they are in the news. Most stocks are boring on purpose and don't scream look at me.
Are we in Covid now? Because the 5%+ drop was in todays trading.
I would argue the majority of stocks don’t trade on actual earnings any more than that’s what gives a fair amount of people confidence to buy. The reality is all stocks are manipulated by the larger players to the greatest extent possible to get the most money possible from the market, hence the adage the market can remain irrational longer than you can remain solvent.
Re: Is anyone else waiting (Score:2)
LOL! By all means, dude, have at it.
You're literally responding to a story about how all the best, most capitalized leveraged traders keep getting wrecked.
If you think Bitcoin is going down, by all means, put your money where your mouth is and 500x your investment.
Thoughts & Prayers (Score:1)
are going out to the investors.
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I mean, sure... but I'm not hoping for GOOD stuff. 'Invest' in shit, wallow in shit. Thanks for enabling money laundering and encouraging gamblers and fraudsters, here's your turd sammich and your bag to hold.
Pyrite Pete's failed prediction (Score:1, Informative)
On Monday April 26, 2021 @02:16AM UTC, Pyrite Pete [urbandictionary.com] had said:
That was back when bitcoin had already fallen, and down to about $47K at the time. It should've been back up to "twice its value" no later than June 26 2021 - over 2.5 years ago. It's currently nowhere near the $94K Pyrite Pete promised us.
Now that's what I call a prediction #FAIL!
Want more LOLs @ Pyrite Pete shitposts? Here are but a sample:
"It is pretty much a given that BTC will be up to [slashdot.org]
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only up by 50% in 3 years, what a disappointment...
Can't wait for the next 'crash' to $90,000, then a 'collapse' to $125,000, then the utter disaster of crashing all the way down to $200,000.
Re:Pyrite Pete's failed prediction (Score:4, Insightful)
Can't wait for the next 'crash' to $90,000, then a 'collapse' to $125,000, then the utter disaster of crashing all the way down to $200,000.
In which century?
Re: Pyrite Pete's failed prediction (Score:2)
Century? LOL! That's likely to be a news headline before 2040.
What about doggy coin? (Score:2)
And the monkey coin and the zebra coin? I missed out on the ape thing, but I am on the lookout for the next big animal to breakout on the crypto scene.
Wait wut? (Score:2)
Holy crap.
I wouldn’t touch that asset with a 20-meter pole.
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It'd be like a FOREX trader moving ~$2.25B USD.
Unsure if the impact on FOREX would be as pronounced as it was on BTC, but I bet it'd be something
Not Detectable (Score:2)
It'd be like a FOREX trader moving ~$2.25B USD.
Unsure if the impact on FOREX would be as pronounced as it was on BTC, but I bet it'd be something
Only 3 billion USD? Not even a quiver of movement.
Total M2 money supply [stlouisfed.org] - 20,783 billion
National debt? Rising at 1 trillion every 100 days [cnbc.com], or 100 billion per day.
With so many dollars sloshing around you'd have to go into serious numbers to even have it be felt.
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FOREX market variability would not exist if it worked how you thought it did
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USD is about %7.7T/d. A single $2.5B USD trade would be approximately 0.002% of that volume.
500BTC is about 0.005% of its capitalization.
For reference, the largest single USD FOREX trade ever made was $2.5B USD.
And yes, it moved the market.
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And your linked evidence is quite convincing...
I'm not trying to convince you. I told the truth, and if you're interested in not being wrong, you'll go seek it.
Remind the viewers at home why you're trying to compare a trading volume with a capitalization amount...
This is a legitimate question.
The reason is, the USD serves as more than just an exchange currency.
From a purely technical perspective, BTC can as well, but in practice, it doesn't.
It's like a petrodollar.
In essence, its capitalization is what determines its value, which is not the case with USD FOREX.
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Ya, that's not great... but it *does* amount to a large amount of the value anyway, comparatively speaking. It'd be like a FOREX trader moving ~$2.25B USD.
Which is considered a drop in the ocean. The London Stock Exchange alone does over $1tn a day in derivatives trading.
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There is more to trading than volume.
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There are 19 million btc in the ecosystem. Someone sells.. 500.. and the price drops 5%?
Yeah, that's one of the bigger mistakes the news media makes when reporting on the market cap of crypto coins. If everyone dumped their coins all at once, there's nowhere near enough buyers to actually sustain the current prices. The game only works if the majority of players "hodl" their imaginary money.
Re: Wait wut? (Score:2)
That's true of stocks too though. It's not like they're talking about market cap differently with crypto.
Re:Wait wut? (Score:4, Interesting)
There aren't anywhere near that many coins in the system. Estimates range wildly, but it seems like up to 30% of bitcoin are probably (hopefully?) lost, including Satoshi's initial stash, various hard drives dumped in landfills, and people who mined a bunch early on and forgot about them.
Even so, as you point out, genuine bitcoin sales moving the price so much illustrates how much wash trading is going on. Most of the estimates agree that wash trading is the majority of bitcoin trades with some up to 80%.
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Nobody really knows how much of those 19 millions actually really "exist", as in, are accessible at all. Some claims reach up to 50% of these coins are irrecoverably lost, be it that the person holding the keys died and took the keys with them to the grave (some quite literally), be it that the keys are lost because of HD crashes and careless wiping (yes, backups are important and rarely done with care) and so on.
And then of course there are the ones that sit on their coins because they know that as soon as
Re: Wait wut? (Score:2)
"Nobody really knows what's holding it up, but it's likely the collective will of everyone in the room because nobody wants to deal with the horror of watching it fall."
That kind of describes every human institution from civilization onwards.
Re: Wait wut? (Score:2)
No. That's not what it says.
What's going on is Bitcoin is publicly traded. So everyone knows when the wealthiest actors are moving money, they know how much, and they know where. It's like trading with Pelosi. It's a near guaranteed win. So when one whale moves, it causes a bunch of speculators to move with it.
Also, the market depth for Bitcoin is quite small compared to the amount of held Bitcoin. And the trading is split up over many exchanges, which exacerbates the volatility on big orders.
The grand master plan of crypto (Score:5, Insightful)
The plan for all cryptocurrencies isn't what they want to make you think it is. It's more sinister than the egalitarian image the crypto boys portray for it.
After the 2008 financial meltdown, cryptocurrencies were born out of it, declared to be the means by which people could be freed from banks/governments, and promised to avoid any such future meltdowns from happening ever again.
But the crypto boys watched closely the result of that meltdown, and formulated their plan: create a new form of currency, and for it a new financial system detached from traditional ones (those burdened by "governments and regulations") - they called it "DeFi" for "Decentralized Finance", but its dirty little secret is that it's really "Deregulated Finance".
Their plan is to make this new money be adopted by the masses, so they start it off with a low price, then gradually increase it, by virtue of them just pulling numbers out of thin air for its value, until it catches the attention of the masses - then it gets more and more "valuable" from the collective faith of its given value ("network effect"), until traditional institutions and the typical "1%" billionaires start to notice and, greedy as they are, want in on the action too.
So now those that got in at the ground floor have gained all this "value" out of thin air, and once they're ready, they'll pull out all pretty much at once - that it'll create a sell-off panic, and a new meltdown is born! And because of their "De[regulated]Fi" system, the bros have already shifted all the risks away from themselves onto others, so they'll make out like bandits, leaving everyone else to "hodl" the bag.
But the bros were really observant about that last meltdown - and noticed all the "bailouts" the big banks got - so as they were shifting the risks to others, they increased their investments into what would get the next bailouts - so in the end they'll make out like bandits twice: the first time from suckering everyone else into their pump-and-dump scam, and again once they benefit from the bailouts that'll get handed out.
And there you have it folks, the real master plan of crypto.
--
"Cryptocurrencies will bring about a worse financial meltdown than the one they were born from." -Prof. Feynman
Not even the biggest daily drop in the last month (Score:3)
Bitcoin surpassed its previous all time high on March 5, reaching over $69,000. It then fell to just over $59,000 in a few hours, shaving nearly $10,000 off its price, before it regained to its upward momentum.
On March 13, it reached about $73,700 before retreating again, marching down to a local low of under $60,800 a week later. It saw two daily price swings over $5,000 in that time frame, one down and one up.
For reference, the price on January 1, 2024 was about $42,200, so the price has risen over 50% YTD.
Tulip bulb futures plummeted... (Score:3, Insightful)
As a flower seeded.
Fucking bitcoin is a joke.
Napalm Death's "You Suffer" blares out. (Score:2)
Gilfoyle left his damn speakers turned up again!
Pump and dump (Score:2)