The bloodbath of today in the crypto markets has come out of nowhere. Bitcoin fell like $8,000 or so in its dollar valuation in a matter of minutes and the living hell has opened up for quite some traders and investors in the market.
Liquidations have once again screwed portfolios and turned traders and investors from convinced bulls to bears in an instant. I spent almost the whole day today with a friend and we were in the car when a friend of his called and asked what the hell happened?
He didn't said hi or anything else... His account got liquidated on Binance and got stoned about the situation. What do you expect when leverage trade, that was my first reaction. I don't leverage trade and wouldn't encourage anyone to do it. It's too risky...
This flash crash was compared on twitter with the one from March 2020 when covid has hit the markets, but my take is that it resembles more the one from September 2017 when the China ban has pushed Bitcoin down a few grands in a blink of an eye for the market to recover to where it felt from at quite the same pace.
Same thing has happened today. We don't know the cause of this crash and honestly I don't even think it matters at all. It might be correlated with the S&P 500 or it might be the result of over leveraged traders. I don't know tbh.
What I know is that often times long term thinking has to face short term reactions and I've seen those today while watching the show on twitter and Hive. It's funny how people turn from overly bullish to overly bearish in a matter of minutes.
It's like years and years of technology advancement and mass adoption progress registered by this revolutionary piece of technology is wiped out of the memory of quite a few market participants by a flash crash. Such situations underline the clarity some of us have towards this tech.
If you believe BTC will get to $1000,000 per coin in one day and it will replace gold as a store of value, then such movements shouldn't shake you at all. It's like engaging in a 1,000 mile drive and getting panicked about a smashed fly messing your windscreen. You need clarity to survive the whole trip.
The only man that today has shown nerves of steel has been 
Curious how 
I've talked crypto the whole day today with this friend of mine, we've compared it with other assets, analyzed this bull market against the previous one and underlined the core differences in fundamentals, blamed leverage trading for screwing potential small fortunes to be made out of crypto and we got back home more bullish than we were before the crash.
The conclusion is that the cycles have probably changed and always comparing the current one with the past ones might not be that smart of a strategy, technology is definitely grounding itself in real life use cases and on the long scale we're going up and up.
Long Term Thinking, Short Term Reactions. That's the narrative of today. That's how I saw people reacting in the market and how I see the market as a whole. But you know what, the market doesn't give a heck about us and the development of this tech is unstoppable.
By the way, we're almost back where we were yesterday price wise, but some of us have really seen their lives before their eyes during the living hell the crypto market has gone through. How did you handled the crash?
Thanks for attention,
Adrian