Crash Or Boom? Bitcoin, Ethereum, DeFi And Gold In Focus
Clem ChambersSenior Contributor
Intelligent InvestingContributor Group
Investing
Gold ingots with bitcoin, 3D rendering
Gold ingots with bitcoin GETTY
Anyone who was overconfident about bitcoin at around $58,000 is either bombed out by margin or stop losses or at very least looking at their positions with a new more sober eye.
First things first. There are billions of profits to be made closing out stop losses and leveraged traders by smashing the price of assets traded by the novice in a “flash crash.” If you can smash the price and cause an avalanche you can make gigantic money. This technique has been pestilential in equities forever, it is even in 19th Century literature and is definitely a big thing in crypto. Don’t put yourself in a position that a 20% move can pump all your money into someone else’s pocket because it will happen. If parties can know or work out where the stop losses are or where the close out margin call levels are, they will drive the price in an instantaneous flash crash to pump those close-outs into their opposing positions making them a fortune.