Market Chatter - Joining the 1BTC Club?
With Bitcoin soon to capitulate the $30k mark, it will open up possibilities of reaching sub $20k.
Many large Bitcoin whales have been circling the exchanges providing extra BTC liquidity. Some are sitting on large gains and could be taking profits.
The bearish sentiment continues with news that the Luna peg is collapsing and they have started to liquidate their 40k BTC.
This comes on further bearish speculation that Mt. Gox is going to release a further 141k BTC in the coming months.
Initially, Altcoins were holding out well in the first drops in Bitcoin, but now the drops are accelerating as the holders sell out and move to BTC. The carnage that could happen to Altcoins is likely to get much worse if BTC continues dropping.
Once $30k gets breached, we could be looking at sub $20k Bitcoin. What that would mean for Altcoins we can only imagine.
This low price of Bitcoin that we haven't seen since around October 2021, could give the Bitcoin Maxi's who missed out on sub-$10k Bitcoin, a chance to get in the 1BTC Club with a more manageable price.
Where do you think Bitcoin is going?
Hive and HBD
The falls in Hive has accelerated with a currently -14,57% drop today alone.
The weekly chart shows how short-lived the pump was after the Fed rate hike. When Bitcoin goes through $30k, we could see a much lower Hive price, possibly around $0,20 or lower. The scale of the carnage is not known.
This would also blow through the HBD haircut mechanism which is important because HBD is seen as debt by the blockchain and it can dramatically increase token supply and cause Hive instability and possible collapse through a death spiral.
source
Once the HBD ratio is above 10%, the HBD price guarantee can no longer be held. It only needs to rise to 20% and you would be looking at a 50% haircut as explained in this post here.
What the knock-on effects for pHBD and those holding it in Polygon would mean is currently unclear. Currently the peg there is very accurate.
If the debt limit is increased as expected to 20-30%, this would give more security to those holding HBD so that they wouldn't get a haircut so easily.
How low will Hive go?
Thanks for reading.
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