The question itself says most of what I'm trying to talk here. Hey, don't get me wrong when I say that we needed this, yeah really. You guys must be aware of herd mentality, right?
What happened actually (in my views):
We always talk about big institutional investors doing all this with their so-called whale friends and taking the value all the way down to almost 1/8th its ATH, and what's so amazing here is, they're ^going to^ make more money with this? Holy shit. It's all really bullshit, yeah that's what I call it when I accepted it and then evaluated the whole market situation. Are you really sure those damn whales are stupid enough to sell their high-quality diamonds (BTC) for the price of peanuts? Think again. Everyone was so amazed watching BTC going all the way up from $1000 to straight away $20k in just 1 year, the (negative) herd mentality of people drew them in a situation where they were only thinking that BTC will remain at those levels and will go more and more higher, and the opposite was what exactly happened. Really? Dumb as fuck. The simple answer is - NO. It was going to have futures established where everyone would be getting an opportunity to earn more and more "BTC" through shorting it.
Hey, how the hell can you say that, jerk?
- Well yeah, you and me must be jerking off while people (who had the power to think it in a different way) chose the other side of the coin, i.e.; go ahead and short it. During the peak time when these people knew that every BTC user will only speak optimistically and remain positive for their investment, that's when they decided to act on an opportunity promptly (heard that phrase: strike while the iron is hot??) Come on, we shouldn't be blaming whales alone for this as it's people like us only who thought the other way is right, they went onto making BTC one of the most profitable assets even while shorting. While you and me were losing our money's value in USD alone, they were also losing their USD valuations but gaining more BTC through their short positions.
What? Really? But, but why would they do this and take it down all the way to 3k? Why 3k only? It could have been 6k or 10k, right?
- Principle of earning more with leverage at least values. Think how easy it would be to make a 100% on a 10x leverage when 1 BTC would be 3300 and they short it till 3k? Straight 2x and what you lost in USD value? 300 USD per BTC if you go for 1 full, but you'll make 2700 bucks extra (3k x 2 BTC = 6k USD - 300 USD loss in value - 3k USD principal). The same would be a lot harder for them to push it down and make the same 100% with least risk of 10x leverage if the price would have been between 6k-10k.
P.S.: This was needed as it was in the talks since the beginning of the so-called pump, that we thought, is some kinda stable growth. It was a crash course for everyone to learn that not all investments could get you rich overnight, esp. Bitcoin. I'm not trying to say anything negative here, but all I want is you should understand that not all investors can profit in a genre like crypto and you need to think very differently, out of the box kinda thinking in order to outsmart those traders who think they'll beat you.
