TL;DR
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Every non-stablecoin in the crypto top 5 had its price fall off a cliff around the same time as BTC fell (see above ☝️).
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Why? Cause some (relatively) unknown research group, called Matrixport, released a report that wagered the upcoming Bitcoin spot ETF (which’d make BTC tradable on the stock market, and attract new investment) would be denied.
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As folks sold their Bitcoin, they also sold off many of the other major coins/tokens they were holding cause we’ve all bought into the idea we lead with at the top: “If BTC goes up/down, the rest of the market often follows.”
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Now it’s a weird self fulfilling prophecy…
Full Story
Remember yesterday when we said:
“Bitcoin tends to lead the crypto market – if BTC goes up, the rest of the market often follows.”
Well, same goes for when Bitcoin prices decrease.
And yesterday morning, that theory was proven out in real time.
Every non-stablecoin in the crypto top 5 had its price fall off a cliff around the same time (see above ☝️).
Why? Cause some (relatively) unknown research group, called Matrixport, released a report that wagered the upcoming Bitcoin spot ETF (which’d make BTC tradable on the stock market, and attract new investment) would be denied.
Their reasoning for this prophecy?
The folks at the SEC responsible for approving the ETF are mostly democrats → some democrats don’t like crypto → therefore they won’t approve a BTC ETF.
It’s a fragile argument at best.
But the market took it to heart and sold off a bunch of Bitcoin, creating a knock-on effect that went something like this:
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A bunch of folks were convinced BTC would go up in price…
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So they took out loans (aka ‘took on leverage’) to buy more Bitcoin…
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When BTC dipped, their lenders forced them to sell and repay the loans…
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This sell pressure pushed BTC prices even lower, which caused more forced sales, which pushed the price lower, till everything bottomed out…
And as folks sold their Bitcoin, they also sold off many of the other major coins/tokens they were holding.
Why? Cause we’ve all bought into the idea we lead with at the top:
“If BTC goes up/down, the rest of the market often follows.”
And now it’s a weird self fulfilling prophecy…
