Over 50 Billion bled out of crypto in a relatively short time. Being trading all the time you see dump after dump - across the board, with few exceptions. So where does the money go? Where did it come from? It' s pumped and dumped. When you see btc sales orders flashing on the screen, you see some very large amounts go by within minutes. As a retail trader you cannot prepare for that. You do not have the information. We are sure these pullbacks are coordinated, but are not able to prove it. In fact: nobody investigates this. All you can do is follow strict discipline in stop limit orders. Dumps are not gradual. They might happen in the 5 minutes you are in the restroom (see our previous post). We got rid of BTC at 9.9K on a stop limit. At a time a lot of youtube personalities incited people to buy because Bitcoin would never see a price below 10K again. While writing this it barely managed to keep 8.5K. Now someone claimed holding (hodling) is OK because the price will bounce back. That is crazy. If the trend goes up again you buy back. Meanwhile you took the spread between 9.9 and whatever you bought it for.
Of course this does not always work. We have some bags that never reached a stop and where we were too late to sell it of. We just accept this dead liquidity for some time. At less than 250B we expect a rally back to 300B. Comes and goes. Meanwhile we study some projects. To know what might be hyped or pumped in the near future. We keep away from the long term value propositions. The markets might decide otherwise. The riggers might decide otherwise.
Even with the massive recent sell of, crypto did better than DOW and Nasdaq. The decline there is attributed by most media to the Corona virus. We do not believe for a second the Corona virus caused receding markets. A stock market correction is long due. At the same time monetary policies around the world become very experimental. We all know the system is broken and fiat currencies are ponzi's - but governments hold the guns and banks hold the legal system. If something is blue but they say it is green, than it is green. If they say all the junk derivatives and obligations hold true value, than they hold true value. People have been predicting a system collapse for many years now. Just didn't happen. The financial system as we know it makes me remind of the Spanish general/dictator Franco. When he got ill, to a point he could not even open his eyes anymore, they kept him alive endlessly. Everybody in Spain knew that after Franco democracy would return to Spain. No one however trusted himself enough to speak about that. When he finally died there were many people who actually did not believe that until he was officially buried.
Crises will be managed. We do not believe the system will crash down overnight. More likely we will see currency reforms and restrictive measures on money. The war on cash is in full swing.
Of course crypto is a beautiful alternative. Not really working yet - but still alive. Fun to trade! If you keep cool and disciplined, you will not easily lose in this market. It's about volatility. It is about Market Cap!
Market Cap, downloaded from CoinGecko <br /><center><hr/><em>Posted from my blog with <a href='https://wordpress.org/plugins/steempress/'>SteemPress</a> : https://cryptmove.com/2020/02/29/its-the-market-cap-silly/ </em><hr/></center>