The cryptocurrency market is going through a painful yet fascinating transformation. The recent sudden price drops have left many retail investors bewildered. However, if we listen to analyses from insiders like Arthur Hayes or Charles Hoskinson, we will see a completely different picture. That's the way it is, the game of Bitcoin now has a completely new dimension, where the old rules of 2017 seem to no longer apply. #Colecolen
The danger from the hidden "trigger points" of the BlackRock ETF fund
Former BitMEX CEO Arthur Hayes has just made a weighty statement: the recent BTC price drop is not due to bad news or crowd panic. Instead, the main culprit is the derivative products related to BlackRock's IBIT ETF. Large banks, when providing these products, are forced to execute risk hedging orders.
That's how it is; when the price of Bitcoin hits a certain secret technical threshold, bank algorithms will trigger sell or buy orders extremely quickly to protect themselves. It is these massive automated trading orders that have created sudden selling pressure, causing prices to plummet in an instant. Hayes emphasizes that the current market is dominated by complex financial products rather than just pure supply and demand, forcing every investor to change their perspective to avoid falling behind.
Charles Hoskinson and the 3 billion USD loss: Behind the steadfastness
While Wall Street is busy with algorithms, in another corner, #CharlesHoskinson â the founder of Cardano â shares a perspective full of humanity and resilience. He reveals that he is facing an unrealized loss of over 3 billion USD. That's how it is; this shows that market risk spares no one, not even top technology billionaires.
However, Hoskinson asserts that he sees this only as a phase of adjustment as the old financial system tries to adapt to blockchain technology. He has no intention of transferring assets to cut losses. This steadfastness sends a strong message: if you believe in the long-term value of technology, short-term fluctuations are just noise. $BTC $ADA