BITCOIN | The Phantom Pain

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Hello, Degens , Moonboyz and Crypto Bros 🚀
We are SOOO BACK! back to 80K levels

Let’s rewind and break down everything that’s gone down in Q1 2025 cause, oh boy, it’s been a ride eh..so far

President Trump and the First Lady rugged memecoins (He is a Business Man doing Business)

The Central African Republic and Argentina President launching rugged memecoins

Kanye will launch a memecoin (The Fans should cover the divorce expenses after all)

ByBit getting hacked for $ 1.4B (Kim Jong Un:work smart not hard)

CZ hard launching his dog to the memecoin community (Pumping BNB with rugging memes)

ETH community trying to overthrow the Ethereum Foundation (the price is already a joke so..)

Why are we still here? Just to suffer? -Kaz

But why the heck BTC dumping! Did I miss a big news event? What the hell caused this madness?
My DMs are full of whats going on in market right now and it reminds me of Kazuhira Miller & Snake scene in MGS Phantom Pain!

Everything we’re seeing from today’s market puke appears to be a case of “weakening markets and growing fears causing mass liquidations (across multiple tokens)” Sounds kinda complex (and it is) but we’re going to walk you through each step of the process in simple terms and take you from “huh?” to “Oh, I get it!” Sound good? Let’s go

Mass liquidations happen when a whole bunch of leverage builds up at certain price points.
Which is just a fancy way of saying “a whole bunch of people have taken out loans which they’ll be forced to pay back if prices dip to a certain level”

And how do they pay them back? By selling their remaining crypto

Which often causes the prices to drop even lower…which can then trigger even more liquidations…and so on – until prices level out, and people start buying back in.

Helping to reverse the momentum

So here’s an over simplified version of how it likely went down

Markets have been weakening over the past few days (crypto & stocks)

Investors decided to start selling

This selling pressure helped push prices down

Liquidation levels were then hit

Leveraged traders were forced to sell their crypto to pay back their loans

The more liquidation levels are hit, the more selling pressure we get

The more the price dips, until all of the local liquidation points been run through

Here’s a chart showing you how all of that works

The yellow lines represent price points that will cause anywhere between 100M-200M worth of selling to occur, so loans can be paid back (and this is just on Binance alone).


It’s rough! But here’s the thing
This is all par for the course in crypto – hell, the options markets have been telling us to expect a drop to 85k or lower since December.

Point is: unless we’re close to the cycle top, drops like this are not something that we need to be worried about. At worst, it’s a “grit your teeth and take it” kinda situation
At best, it’s a “holy hell, this is a buying opportunity!” type of situation

The moment you switch your thinking from “red charts = sell!” to “red charts = buy!” investing becomes a whooole lot easier

10 saat önce

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