Topic: Educational: Breaking misconceptions about market crashs - page 2. (Read 328 times)

Lets agree to disagree. Its only not about Luna crash here mate. Yes they did sold all of their bitcoin to retain its peg on their stablecoin but seems not to work and eventually lead to a bigger crash. Yes I agreed it was fear but if you look into the technical side. Its destined to be like that since were oversold already and has to make some correction that is hugely been criticize as manipulations. Anyway you got your point its just not a solid one that believable though.

This problem seems to have become a tradition, for several years knowing the price and movement of BTC and altcoins. Altcoins and BTC have always had an entanglement. They have a relationship, this consensus has been trusted. Realistically it's actually quite realistic because we can see the dominant amount of BTC. If Dominance goes up then altcoin habits tend to go down because many hold BTC and vice versa. CMIIW


Yes, but I don't think there's a big effect. Either this just makes the market opinion worse to make the BTC price lower or it is the reality. In other news, Finland is also selling confiscated BTC to help Ukraine but i see no big effect.

Source: https://www.bloomberg.com/news/articles/2022-07-21/finland-liquidates-seized-bitcoin-stash-amid-crypto-bust

Not sure if I would call it "stable" if they gave bitcoin a great amount of sell pressure. Obviously it would look "stable", because they slowly sold the bitcoin rather than doing it all in one huge sell offer(which would be horrendous for both Tesla and the broader crypto market).

Do you think Bitcoin fell because of altcoins?

Altcoins are not reasons why Bitcoin fell down. It will fall with a reason to you see. Luna Foundation Guard sold their Bitcoin but do you think why they had to sell their Bitcoin from their guard?

Market makers test the market and when they saw a great opportunity to pull a trigger, they did it. Luna is a victim in the game to break a price of Bitcoin.

The point is that an altcoin having fundamental issues is not going to affect Bitcoin much, the sell off could have caused panic as it's somewhat Bitcoin related and can cause panic and fud. There are also other factors that goes into price movements besides what hits the news as headlines.

Relatively stable. Depending on how you look at it. Compared to what happened with the Terra situation, this didn't lead to such a crash. But if I remember correctly, bitcoin was trading at around $24k when it happened, and then the value dropped to $21-22k. Nothing dramatic but we are still looking at a difference of 8%.

But it is not enough to crash Bitcoin almost about 10k down.

It was a crash caused by fear and irrational decisions (panic sell). Many people lost money as Bitcoin slowly recovered later but people stayed weak (which was a mistake) and more Altcoin bad news arrived. Totally irrational.

Yes, but markets stayed stable.

As Bttzed03 mentioned, the Luna Foundation Guard owned over $3 billion worth of Bitcoin and several altcoins. But when Terra started crashing, they made the decision to sell almost all of their bitcoin collateral trying to stop the stablecoin from de-pegging further. That didn't work out and Terra is now art of crypto history.

Didn't Tesla also announce recently they sold almost $1 billion worth of bitcoin?

It's not as simple as altcoin related.

If I'm going to guess, it's more like this:
Luna Foundation Guard (LFG) sold a significant amount of bitcoins (80K) after the 'attack' to save the dying UST, more bears took advantage of the situation to push the price down further, and then the majority of retail traders sold out of panic.

If you're going to say the market crashed because of what LFG did, you might as well say they also helped pumped the price when they bought BTC for their reserve.

Most crashes are not rational and instead, driven by misconceptions and fear.
We need to break such misconceptions to build a stronger and more resistant market.

Recently, Altcoin pressure has resulted in Bitcoin losing value. A huge crash occured, where Bitcoin lost 10k USD.
It was clearly not a rational decision.
Selling people lost much money.
And here's what's important:

 
It was because a Shitcoin collapsed (Terra Luna).
And one more Shitcoin, too (Celsius)
NOT because Bitcoin had issues!

It was only Altcoin related but Bitcoin declined in price, too.
Completely unreasonable because Bitcoin had NO issues.
It was only Altcoin related.

People need to learn to differenciate between Bitcoin and Altcoins.



 
Bitcoin wasn't responsible for what happened, Bitcoin was safe, working as usual and as usually proven since Bitcoin was started. It was caused by a single, very risky ALTCOIN, where fundamentals of were not proven sufficiently. It was a weak Altcoin causing a huge crash.
An Altcoin, where no link to Bitcoin's tech was around. Bitcoin and Altcoins are totally independent, still people are getting FUD and sell Bitcoin causing a crash.

People should be aware for a similar situation: Bitcoin wasn't responsible for what happened, Bitcoin was safe, working as usual and as usually proven since Bitcoin was started. No need to sell Bitcoin.
People need to learn to be wise and don't sell Bitcoin when different Altcoins are having techical problems. It will likely happen a lot more because we have a lot of shady Altcoins!

A very good recommendation: don't sell Bitcoin when a different Altcoin crashes!

After all, such crashes will only re- distribute coins from weak hands to strong hands (HODLers).


Bitcoin is a store of value, HODL

To be succesful means to understand Bitcoin is independent from Altcoins and to understand HODL.  
To be succesful means to understand Bitcoin is a good store of value.

Bitcoin is valuable because BTC is capped at 21M coins, Bitcoin's supply can't get inflated.
Imagine in 100 years, FIAT inflation is 2 to 10 percent every year, but Bitcoin is capped.

Bitcoin can get a real alternative for gold, digital gold and a very reliable store of value. But people need to do research about Bitcoin,  halving mechanism and technical independence from Altcoins.
Don't be feared.