The Great BTC Flash Crash of 2024

Flash crashes really are nothing new if you've been in the crypto game for a long time. In fact they happen a lot less often now compared to before. These flash crashes used to spark other flash crashes and domino bitcoin to some crazy over sold levels. But the question now is does this still happen with how much exposure bitcoin now has to fiat money and other financial systems.

Well today kind of gave us that answer as bitcoin came crashing down from 60k to 56k which might not sound like a lot but it adds up to a decent percentage when you talk about the stock market for instance.

So what caused it?

What could we be in for next?

Let's pull some highlights and information and see for ourselves.

If we take a look at the last three months of bitcoin we can see a stark change in overall wanting on the token.

We see that prices increased like wildfire this year then stagnated out for nearly two months into the Sharp decline we are seeing today.

Our return level I feel we will see will be 50k - 55k in the next month. After which we could see a new mega rally as large cap investors start to pile in via the ETFs due to clearing houses finally getting their ducks in a row.

Hong Kong

Hong Kong today launched their own spot bitcoin ETF much like black rock but we also saw them launch one for Ethereum. Many thought this would have been a big positive day for bitcoin and also Ethereum.

However we all should have known it was going to be underwhelming mainly because China will not allow it's investors to get in on these ETFs they are extremely strict with the digital asset and their people.

It only ended up being a few million but it's actully big for there ranking it now the 6th best ETF to launch there. It starts to bring in perspective in terms of how much "value" or otherwise "wealth" other countries actully have it's shockingly low.

Blackrock

We also see that blackrocks ETF fund of BTC seems to have stopped. Meaning no more real inflows and that it currently holds roughly the same 274k BTC. This is actully rather normal when you look out at other ETFs but it seems to have other investors that don't understand this on edge and starting to almost panic sell.

The Longs

We often hear about the shorts being flushed out or destroyed in the markets which are people betting that the price of bitcoin will go down. When it sky rockets up this often means these places have to or should sell out because their value is taking a serious beating and they try to stop losses.

Well the same thing goes the other way but it's for some reason not often talked about. Your longs who are betting on the price of bitcoin to go up. Can be flushed out from selling of the asset which is what we saw a bit of today with 140 million longs being removed.

The Fed

Today we also got news from the fed to keep interest rates at where they are. They also said some questioning things such as the markets are doing well and that inflation is coming down lol. When in reality inflation is actully coming back and not going to the 2% mark. In fact this last report had it from 3.2% to 3.5% which might not seem like much compared to the past but it's actully a rather large jump month over month and could continue to go higher.

This higher mark would mean the fed wouldn't be dropping interest rates which is something I expect. If they do it might be one time just to please some people but honestly I don't see us going down until interest rates start to slowly start to return downwards.

CZ

Ah good old CZ the dude that runs Binance and who I said many years ago you can't just tokenize a stock and sell it lol.

CZ landed a sentence of 4 months in prison. Which will most likely be reduced and feel like a walk in the park really. He still retains control of the company. Owns 90% of the company and has billions of dollars in wealth that is to be untouched. A very very minor slap on the wrist compared to the higher profile case with FTX which honestly feels like yet another small slap on the wrist.

Showing if you scam and manipulate money markets enough and come out with billions of dollars to your name you can pretty much get away with it and only serve a small amount of time for it.

Do this in another country and you get shot... just saying lol

Roger Ver

This one came a bit out of left field at least for me. Roger Ver was arrested in Spain with a charge of 50 million dollar tax evasion for main fraud and filed false tax returns.

Roger Ver is the creators of Bitcoin Cash so if we take a look at that token it seems to be doing ok to be honest.

Ah I do miss the days of Noise Cash and getting some handouts of this token to be totally fair. I still hold on to it from those days. It goes to show you though when you do on these social platforms to earn tokens can turn into hundreds or thousands of dollars later.

It's also important to note here that a 20% correction in BTC price is rather common place. So this correction so far is pretty normal when it comes to bitcoin price action. This price action should see us at 51k BTC value roughly as the next major support line.

Posted Using InLeo Alpha