Hey everyone. How are you all? How has life been to you over the past week? For those of you who trade crypto especially, how have you been? It's been a couple days since the thing happened. And the market seems to be going up ever so slightly. So I guess this is life after the biggest crypto liquidation in known history 19 billion in leverage wiped out. Other sources are saying around 800 billion in total value wiped out from crypto. So I guess those who survived this, will go very far in life. Although this liquidation has put Manny on the streets. Many portfolios have been completely liquidated. Many have probably lost all their savings as not only crypto but also the financial markets such as NASDAQ, S&P 500 and the Dow Jones have also taken a huge hit.
Many have been blaming the American president for this unprecedented crash. While that is partially true, it is not the entire truth. Yes he had a lot to do with it. But at the same time, crypto and especially BTC was hanging on a huge leverage for the past few days. And as all this came down on a Friday afternoon, when the market was bleeding, leverage long positions defaulted and got sold forcibly which also contributed to further losses in the market. So when America imposed a 100% tariff on China, the market which was high on greed shifted to panic within hours, people sold their positions and a lot of people got sold because of the long leverages. BTC lost $20,000 in that flash crash. Things that even a year ago you thought might never happen. And it seems like the rules have now changed. Previously. You could analyze your way up the crypto ladder. But now it just hinges on some tweets and the geopolitical chess matches. Obviously, previously that wasn't the case because crypto wasn't so much blind with international politics nor the financial markets, but now it is more than ever connected. So I guess from now on along with their analytics about which coin to buy. You should also keep an eye on social media because you never know when they will lose their minds next. You know who I'm talking about.
The only good thing that you can take away from this crash is that the boat run isn't over. And as much as there have been people liquidated, institutional investors have bought in during the dip. So this although unprecedented and wasn't planned and it is merited by an unusual chain of events, the end result is the same as every individual and small investors who were on the brink of losing everything during the dip left. And big institutions that could afford it, bought more and more crypto during those dips. So a lot more money to the whales, and a lot less fish in the pond.
