Explanation
Chartbuddy thanks talkimg.com
Topic: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion - page 102. (Read 26735845 times)
January 22, 2025, 01:01:16 AM
January 22, 2025, 12:01:12 AM
January 21, 2025, 11:51:08 PM
Our guy is free. Ross is officially on the outside and probably eating a burger as we speak. I’m so glad that the Presidential vote went the way it did. It is going to be so nice having an administration that wants to help us win instead of trying to jail us for breaking free of their financial slavery. I’m so happy for Ross and his family tonight.
January 21, 2025, 11:44:50 PM
MARA CEO says they are focusing on bringing the Strategic Bitcoin Reserve to all 50 states and the Federal government.
IT’S HAPPENING!!
https://x.com/Vivek4real_/status/1881894115111231613?t=5iFcB0L2lNtrLkL5b10RNA&s=19
IT’S HAPPENING!!
https://x.com/Vivek4real_/status/1881894115111231613?t=5iFcB0L2lNtrLkL5b10RNA&s=19
So much bullish news hitting the markets. I’m starting to have friends seriously ask me for advice on how to invest into Bitcoin. I worry about telling people to open crypto accounts to get started and usually tell them to buy IBIT or FBTC. I have started telling people if that isn’t exciting enough to look at MSTR. People seem more comfortable betting on stocks.
[/quote
I SUSPECT we get over 250k which is a bit scary.
January 21, 2025, 11:40:41 PM
MARA CEO says they are focusing on bringing the Strategic Bitcoin Reserve to all 50 states and the Federal government.
IT’S HAPPENING!!
https://x.com/Vivek4real_/status/1881894115111231613?t=5iFcB0L2lNtrLkL5b10RNA&s=19
IT’S HAPPENING!!
https://x.com/Vivek4real_/status/1881894115111231613?t=5iFcB0L2lNtrLkL5b10RNA&s=19
So much bullish news hitting the markets. I’m starting to have friends seriously ask me for advice on how to invest into Bitcoin. I worry about telling people to open crypto accounts to get started and usually tell them to buy IBIT or FBTC. I have started telling people if that isn’t exciting enough to look at MSTR. People seem more comfortable betting on stocks.
January 21, 2025, 11:06:57 PM
yeah the mara CEO must be tripping on how much he will earn if we go bsr
January 21, 2025, 11:01:12 PM
January 21, 2025, 10:57:29 PM
MARA CEO says they are focusing on bringing the Strategic Bitcoin Reserve to all 50 states and the Federal government.
IT’S HAPPENING!!
https://x.com/Vivek4real_/status/1881894115111231613?t=5iFcB0L2lNtrLkL5b10RNA&s=19
IT’S HAPPENING!!
https://x.com/Vivek4real_/status/1881894115111231613?t=5iFcB0L2lNtrLkL5b10RNA&s=19
January 21, 2025, 10:55:41 PM
[/center]Dear President,
we respectfully request that you make good on the other promise too.
You know which one.
Thank you for your consideration.
Sincerely,
Hmm he freed Ross. waiting for more news on BSR
https://abcnews.go.com/Politics/trump-authorizes-ice-target-schools-churches/story?id=117954409
"Trump authorizes ICE to target schools and churches"
Still waiting for his first big Ice raid and deportation.
Along with BSR
January 21, 2025, 10:01:15 PM
January 21, 2025, 10:00:05 PM
TL/DR - So shorting MSTR Long 2X ETFs while owing MSTR stock, an arbitrage play.
Do these 2x ETFs track bitcoin or something else? Do Greenlight add on top of their short after MSTR buys, or is that an automatic effect of the makeup of the ETFs? I honestly don't understand the mechanism hinted at by the article.
I believe the two ETFs track the MSTR stock index, but at 2X leveraged. It sounds like Greenlight was shorting them, partially hedged by owning MSTR stock directly as well. Someone correct me if I'm wrong, but I'm assuming was the arbitrage trade was taking advantage of the volatility swings in price gap between the two positions.
The process of maintaining and rebalancing a leveraged ETF fund sounds complicated and quite the headache, with transaction costs that can eat into the investor's returns.
Here's an article that explains it in more detail:
https://www.investopedia.com/articles/exchangetradedfunds/07/leveraged-etf.asp
The process of maintaining and rebalancing a leveraged ETF fund sounds complicated and quite the headache, with transaction costs that can eat into the investor's returns.
Here's an article that explains it in more detail:
https://www.investopedia.com/articles/exchangetradedfunds/07/leveraged-etf.asp
Aha now I see, thank you. I haven't read the investopedia link yet, but I've read that the (btc-, not MSTR-based) ETF managers have their own trouble to keep it aligned with the underlying. It is done daily if I'm not mistaken, and at the end of the trading day. So I guess there's an opportunity for arbitrage if one is quick enough to exploit the (probably small) daily discrepancies in price.
If it's only that, it sounds like much too much work for the money. Just long btc ffs.
January 21, 2025, 09:35:56 PM
Thanks for your reply, Torque.
I think the real answer to this question is buried at the end of this article:
https://www.cnbc.com/2025/01/21/david-einhorn-says-we-have-reached-the-fartcoin-stage-of-the-market-cycle.html
TL/DR - So shorting MSTR Long 2X ETFs while owing MSTR stock, an arbitrage play.
Do these 2x ETFs track bitcoin or something else? Do Greenlight add on top of their short after MSTR buys, or is that an automatic effect of the makeup of the ETFs? I honestly don't understand the mechanism hinted at by the article.
It seems that each time Michael Saylor announces his latest purchase of bitcoin, the price dumps. This is conterintuitive, but one explanation is that after the announcements, the bears feel safe to short since there's going to be no huge MSTR buying pressure for a few days.
I think the real answer to this question is buried at the end of this article:
https://www.cnbc.com/2025/01/21/david-einhorn-says-we-have-reached-the-fartcoin-stage-of-the-market-cycle.html
Quote
Shorting leveraged bitcoin ETFs
Greenlight took advantage of the craziness around crypto during the fourth quarter by betting against some popular ETFs linked indirectly to bitcoin.
The two funds the firm focused on were the T-Rex 2X Long MSTR Daily Target ETF (MSTU) and the Defiance Daily Target 2X Long MSTR ETF (MSTX). Those funds use derivatives to try to achieve two-times the daily returns of MicroStrategy,
a software company that has turned itself into a bitcoin treasury vehicle in recent years.
The funds have at times struggled to achieve that goal due to MicroStrategy’s volatility and little supply of the derivatives most easily used to get the leveraged returns.
The letter said Greenlight took short positions against those funds during the quarter, partially offset by owning MicroStrategy stock in an arbitrage trade that was a “material winner.”
Greenlight took advantage of the craziness around crypto during the fourth quarter by betting against some popular ETFs linked indirectly to bitcoin.
The two funds the firm focused on were the T-Rex 2X Long MSTR Daily Target ETF (MSTU) and the Defiance Daily Target 2X Long MSTR ETF (MSTX). Those funds use derivatives to try to achieve two-times the daily returns of MicroStrategy,
a software company that has turned itself into a bitcoin treasury vehicle in recent years.
The funds have at times struggled to achieve that goal due to MicroStrategy’s volatility and little supply of the derivatives most easily used to get the leveraged returns.
The letter said Greenlight took short positions against those funds during the quarter, partially offset by owning MicroStrategy stock in an arbitrage trade that was a “material winner.”
TL/DR - So shorting MSTR Long 2X ETFs while owing MSTR stock, an arbitrage play.
Do these 2x ETFs track bitcoin or something else? Do Greenlight add on top of their short after MSTR buys, or is that an automatic effect of the makeup of the ETFs? I honestly don't understand the mechanism hinted at by the article.
I believe the two ETFs track the MSTR stock index, but at 2X leveraged. It sounds like Greenlight was shorting them, partially hedged by owning MSTR stock directly as well. Someone correct me if I'm wrong, but I'm assuming was the arbitrage trade was taking advantage of the volatility swings in price gap between the two positions.
The process of maintaining and rebalancing a leveraged ETF fund sounds complicated and quite the headache, with transaction costs that can eat into the investor's returns.
Here's an article that explains it in more detail:
https://www.investopedia.com/articles/exchangetradedfunds/07/leveraged-etf.asp
January 21, 2025, 09:16:27 PM
[/center]Dear President,
we respectfully request that you make good on the other promise too.
You know which one.
Thank you for your consideration.
Sincerely,
January 21, 2025, 09:01:13 PM
January 21, 2025, 08:25:20 PM
Ross is a free man.
Bye bye USP Tucson.
Hello Silk Road 3.
#rossfreedhaiku
Bye bye USP Tucson.
Hello Silk Road 3.
#rossfreedhaiku
January 21, 2025, 08:01:12 PM
January 21, 2025, 07:53:50 PM
Ross is free baby!
It is being reported that President Trump has given Ross Ulbricht a full pardon! I expect we will see a formal announcement before the night is over. A Bitcoiner is coming home. This should be reason for all of us to celebrate. Without Ross shining a light on Bitcoin, who knows where we would all be today.
Trump has just prove that he is a true leader that have the interest of the people at heart. The signed pardon of Ross is a plus to Bitcoin because of his outstanding role to Bitcoin and he is one of those that have shined light to Bitcoin investment and I believe that this unconditional pardon is an indication that Trump administration will have positive impact on Bitcoin especially if he achieve his propose intention of making Bitcoin a strategy reserve of US. It is being reported that President Trump has given Ross Ulbricht a full pardon! I expect we will see a formal announcement before the night is over. A Bitcoiner is coming home. This should be reason for all of us to celebrate. Without Ross shining a light on Bitcoin, who knows where we would all be today.
January 21, 2025, 07:42:41 PM
Wikipedia...
From Wikipedia, the free encyclopedia
Ross Ulbricht
Born Ross William Ulbricht
March 27, 1984 (age 40)[3]
Austin, Texas, U.S.
Other names Silk Road Admin, SR Admin, Dread Pirate Roberts, DPR, Frosty, Altoid
Alma mater University of Texas at Dallas (BS)
Pennsylvania State University (MS)
Occupation Darknet market operator
Years active February 2011 – October 2013
Known for Creator of Silk Road
Conviction(s)
Engaging in a continuing criminal enterprise
Distributing narcotics
Distributing narcotics by means of the Internet
Conspiring to distribute narcotics
Conspiring to commit money laundering (February 6, 2015)
Conspiring to traffic in false identity documents
Conspiring to commit computer hacking[1]
Criminal penalty
Life imprisonment without the possibility of parole plus $183,961,921 fine (May 29, 2015)
Pardoned by Donald Trump (January 21, 2025)
Date apprehended
October 1, 2013
Imprisoned at United States Penitentiary, Tucson[2]
Website freeross.org
Ross William Ulbricht (born March 27, 1984) is an American who was sentenced to life imprisonment for creating and operating the darknet market website Silk Road from 2011 until his arrest in 2013.[4] Ulbricht received a full and unconditional pardon by President Donald Trump on January 21, 2025.[5][6][7]
From Wikipedia, the free encyclopedia
Ross Ulbricht
Born Ross William Ulbricht
March 27, 1984 (age 40)[3]
Austin, Texas, U.S.
Other names Silk Road Admin, SR Admin, Dread Pirate Roberts, DPR, Frosty, Altoid
Alma mater University of Texas at Dallas (BS)
Pennsylvania State University (MS)
Occupation Darknet market operator
Years active February 2011 – October 2013
Known for Creator of Silk Road
Conviction(s)
Engaging in a continuing criminal enterprise
Distributing narcotics
Distributing narcotics by means of the Internet
Conspiring to distribute narcotics
Conspiring to commit money laundering (February 6, 2015)
Conspiring to traffic in false identity documents
Conspiring to commit computer hacking[1]
Criminal penalty
Life imprisonment without the possibility of parole plus $183,961,921 fine (May 29, 2015)
Pardoned by Donald Trump (January 21, 2025)
Date apprehended
October 1, 2013
Imprisoned at United States Penitentiary, Tucson[2]
Website freeross.org
Ross William Ulbricht (born March 27, 1984) is an American who was sentenced to life imprisonment for creating and operating the darknet market website Silk Road from 2011 until his arrest in 2013.[4] Ulbricht received a full and unconditional pardon by President Donald Trump on January 21, 2025.[5][6][7]
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Activity: 2786
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January 21, 2025, 07:42:35 PM
Yes, it is official and this is one of the news that really matters in Bitcoin space. The next news that matters will be Trump's move towards the Bitcoin reserve strategy just as he made the official announcement of a $500 billion AI investment.
January 21, 2025, 07:36:02 PM
Ross the bitcoiner
No market without buyers
He was just helping
#haiku
No market without buyers
He was just helping
#haiku
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