Here’s my best shot at explaining to everyone that asked “what happened” today.
Israel bombed Iran and said they aren’t done. So this may not be over just yet.
WTF this have to do with crypto, you ask?
In general, if there’s a crisis in the news, people and institutions will sell assets (stonks/crypto) so they have more cash on hand for whatever, but it has become a self fulfilling prophecy.
People think the price will go down in war so if they smell war, they try and sell first.
In crypto, it’s magnified, because so many big player use leverage (aka borrowing) and get liquidated when the price goes down more than 2% or so.
For those afraid to ask what all that means… Basically people put up their ETH or BTC as collateral on a much larger loan with an exchange, hoping to just take the profits, but if the price on it drops below a certain level, they get “liquidated” which means the exchange automatically sells all their holdings.
So when you hear $1 billion liquidated, that means the exchanges jeeted $1 billion worth of peoples crypto at market prices, while the price was already diving.
Starting to make sense?
When whales get liquidated out of a position, they gotta sell other stuff to get cash… driving the price of those things down.
Sh*t always flows downhill, straight into the trenches.
IMO...
The rewards for engagement on X are fully retarted.
100000000 people saying GM/GN to each other to score engagement points is a circle jerk.
... break the cycle...
Just say no to asking "who's active" for the 3rd time today, or whatever grok tells you....
maybe just post when you have something to say... let some signal through the noise.