Welcome back,
I hope by now everyone must have seen the recent market liquidation. I think it was one of the biggest bloodbaths in the last few years. I do not know if I should call it a black swan event because it was not actually a black swan event. The market was manipulated and it was all pre-planned.
We saw a tweet coming from Trump where he said that he is going to impose a 100% tariff on China, and that news alone was enough to wreck the entire crypto as well as the stock market. Now the question is why people were not allowed to close their future positions in most of the exchanges.
You heard it right, most of the people, including a few whom I personally know, told me that they were unable to open Binance. Because of that, when the market was going down, they had the chance to close their position and save their funds, but since Binance did not work, they all got liquidated.
I do not know if it was all decided beforehand, but a platform like Binance acting like this at such a crucial time, where the market was jumping like anything and tokens were going to $0, should have acted properly. But we did not see that, and the performance of most exchanges was really bad, which is why people got liquidated.
Some of the tokens, as I already said, reached almost $0. For example, Pengu token almost reached $0. Atom, one of the most used projects with a good use case, reached $0 on Binance. Lido, which is the staking platform of Ethereum, came down to $0.30 from $1.20, which is a big fall. We saw this in almost 99% of the currencies. Only a few in my knowledge were able to survive this bloodbath, including ZEN and ZEC. These two tokens acted the opposite way to what the other tokens were doing.
Also, one of the tokens that I shared here, DOG, built on the Bitcoin blockchain using Rune’s platform, was also able to survive the bloodbath because I already see it has recovered from the recent crash and is trading at the same levels where it was two days back. So these two tokens in my knowledge actually performed really well even in the bloodbath situation.
But for the rest, I do not know what level they set their liquidation price at. Yesterday, if there was anyone opening future positions, they got wrecked, they got liquidated. The only way to get peace in your heart right now is to stay away from the market for the next two days because the worst is yet to come.
On Monday, the US stock market will open, and I think China is going to respond. If we hear news of China imposing even higher tariffs on America, then believe me, the market is going to come down further.
At this moment, I do not know what to suggest, just do what you think is best for you. Personally, I am going to hold on to my assets. I am not going to sell at this point of time. I do not know if I will make any new entries because almost every dollar I own was invested two days back in the market, as I did not expect such a crash. So even I do not have any dollars left to invest right now.
Though I think this is a decent time to invest in the market and make quick returns. If the market corrects in the next few days, you could easily capture 50–200% profits on some good projects that crashed, including SUI token, ENA, and maybe even Ethereum, where you can expect a gain of around 20% easily. So that is what you can do if you have USDT.
But do your own research because the market is quite manipulative. Even after many things happening in the market, including the ETF approvals of different currencies like Bitcoin, Ethereum, and some top-tier ones, the crypto market is still manipulative.
I hope you all stay calm. Do not panic. Give time to your family, give time to yourself, and stay away from the market for a while.
Thank you and happy trading everyone.