[2021-04-18] The tweet erased the $288 billion cap of the crypto market

[Daltonik]

The newspaper published the article https://u.today/this-tweet-just-erased-288-billion-from-crypto-market-cap discussing the impact on the crypto market, for example, here is the tweet https://twitter.com/Fxhedgers/status/1383611847144730626 which places unsubstantiated statement referring to the U.S. Treasury, which in turn may lead to mass killings and subsidence of bitcoin prices in the short time to $51,541.

Reddit users have been condemning the topic of the impact of random tweets by @Fxhedgers on the crypto market for the second week. https://www.reddit.com/r/GME/comments/mjswe9/can_we_stop_quoting_random_twitter_accounts_like/

Jake Czerwinski, general counsel of Compound Finance, writes that he does not consider this tweet credible, since money laundering cases fall under the jurisdiction of the US Department of Justice. He also adds that it would be “unusual” to charge multiple financial institutions at once: "I don't find that plausible. The tweet itself is suspicious: The Treasury doesn't charge money laundering (the DOJ does), and a case against multiple FIS at once would be unusual. In addition, criminal investigations are kept strictly secret and rarely leak out. I was not convinced by the unnamed "sources."

But the question arises whether the crypto market is so stable if it turns out to be powerless against suspicious tweets, on which, perhaps, someone makes billions

[1714893618]

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[1714893618]

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[decodx]

But the question arises whether the crypto market is so stable if it turns out to be powerless against suspicious tweets, on which, perhaps, someone makes billions

But the question arises whether this tweet has anything to do with the current price of bitcoin. Bitcoin is volatile, everyone should already know that.

[Slow death]

The sad part is that people rushed to sell before confirming the news (if this news is really responsible for the sale). in this cryptocurrency market in the same way that a twitter by Elon Musk can cause the price to increase a lot the other way around it can also happen that a negative twitter causes the price to drop a lot and that's what happened with this news that you posted. these are normal things in a short time the price will return to $62,000, and it is impossible for this news to bring the price down for a long time.

[Theb]

I don't think that unconfirmed Tweet is the main reason why we have experienced a big dump recently, for me this is just coincidental as what I have said recently is that  Bitcoin being at $64,000 made it hard for a lot of people to hold and made it an enticing price to start taking some profits which maybe a lot of people did, the price rally to 64k was also weak and pointing that out is the lack of volume going to 64k. Obviously a weak price rally will result into a correction which just happened. Now we are just seeing a lot of crypto news media sources linking everything on what is happening to the market the more controversial their headline the more noise they can create.

[bbc.reporter]

@Theb. Agreed. We are in a bubble that is pumped by overleveraged traders. It was only a small dump that began to create a bigger dump to send bitcoin down by more than 8% and liquidated $9 billion in long positions.

[willoweb]

It always happens that someone writes something on purpose or accidentally - it is not so important why and the market flies down because of the signals that come to traders to "sell". But if we look at the bitcoin price, then we can calm down today. Below the level of 55 thousand dollars, Bitcoin did not fall despite all the hype around this situation. Someone registered the arrival - we can congratulate him, further we will have a new growth for this there is a lot of positive news. So I'm in a positive mood!

[nutildah]

I didn't know what level of FUD this was when I first saw it... it was floated across a Facebook cryptocurrency group I'm in, so I knew it must have been pretty mainstream by that point. Turns out it was deep, deep FUD.

Tweet was removed BTW. I went to check it out to see how much truth there was behind it, and its gone. Maybe that's all it was: FUD.

[gmaxwell]

Why was this even supposed to matter? Banks get in trouble for money laundering with some regularity.  They pay their fines (sometimes billions of dollars) and continue on as if nothing ever happened.

[bbc.reporter]

I didn't know what level of FUD this was when I first saw it... it was floated across a Facebook cryptocurrency group I'm in, so I knew it must have been pretty mainstream by that point. Turns out it was deep, deep FUD.

Tweet was removed BTW. I went to check it out to see how much truth there was behind it, and its gone. Maybe that's all it was: FUD.

It was FUD, however, if FUD can cause $9 billion worth of losses then it is very clear that there is something wrong with this market. How much more leverage did it take to pump bitcoin from $10k to $60k? It is a bubble that might turn many investors into community members hehehe.

[Daltonik]

Clients of the New York Digital Investment Group (NYDIG) platform focused on institutional investors took advantage of the sharp decline in the price of bitcoin to build up positions in the cryptocurrency. This was announced by the company's strategist Greg Cipolaro  https://twitter.com/NYDIG_BTC/status/1384173882752393224

[kano]

Why was this even supposed to matter? Banks get in trouble for money laundering with some regularity.  They pay their fines (sometimes billions of dollars) and continue on as if nothing ever happened.

Because Bitcoin is evil and banks and governments don't like it of course

There's also the fact that something drastic happened to available power in China and the hash rate seems to have dropped something like 20%
But looking into seeing if that is related to the BTC price drop would require intelligent people, not someone using facebook

[hatshepsut93]

This rumor could have been the trigger, but I think reddit's explanation about overlevereged market makes more sense explaining why this drop occurred. FUD gets posted all the time, even actual confirmed news and not just rumors, and it doesn't crash the market by 15%, so clearly there was some other reason to why this happened.

[acquafredda]

Do not give that tweet too much traction as it was not what caused the recent market crash. I am with gmaxwell on this and since we do not see a real source providing that info that is simply some FUD. Let us move on and focus on the things that really matter.

[milewilda]

Do not give that tweet too much traction as it was not what caused the recent market crash. I am with gmaxwell on this and since we do not see a real source providing that info that is simply some FUD. Let us move on and focus on the things that really matter.

Yes, we can ignore those personally but the entire community wouldnt able to resist on not to panic out anytime there some kind of news that pops out from nowhere and telling about US
charges and something like that.It is really hard to ignore once you do read it up where people do normally react on the time they are aware without knowing the some valid
source. This kind of small price crash isnt something new into this market and this is why its highly reactive when it comes to fundamentals.

[acquafredda]

Interesting to notice that I went to look for the tweet by FXHedge and it got removed, following the link posted in OP it says the the page does not exist. It has been a very shady move by this group. No one confirmed it nor denied it.
Do you have seen it somewhere else? I saw the MSM went nuts on that rumor, it was all they were waiting for.

[cr1776]

...
But the question arises whether the crypto market is so stable if it turns out to be powerless against suspicious tweets, on which, perhaps, someone makes billions

The crypto market is stable, it is the fiat<->crypto market that is (a) leveraged and (b) susceptible to people "selling the news" (e.g. sell first and ask questions later).  The over-leveraged traders won't last long if they keep getting destroyed which could decrease volatility.  Likewise, with a larger market which would include more individuals, ETFs and many more corporations world-wide, the price would be much more stable since you would have larger pockets who wouldn't care what FXHedge tweeted, let alone if it was true since they would be able to rationally assess whether it would make any difference at all even if it was true.  This is another reason why it is always important to increase usage, no matter what use that is.

[acquafredda]

...
But the question arises whether the crypto market is so stable if it turns out to be powerless against suspicious tweets, on which, perhaps, someone makes billions

The crypto market is stable, it is the fiat<->crypto market that is (a) leveraged and (b) susceptible to people "selling the news" (e.g. sell first and ask questions later).  The over-leveraged traders won't last long if they keep getting destroyed which could decrease volatility.  Likewise, with a larger market which would include more individuals, ETFs and many more corporations world-wide, the price would be much more stable since you would have larger pockets who wouldn't care what FXHedge tweeted, let alone if it was true since they would be able to rationally assess whether it would make any difference at all even if it was true.  This is another reason why it is always important to increase usage, no matter what use that is.

I find it very difficult not to agree with every single word of yours, cr1776. In my small world, I am doing whatever it takes to increase usage and to do my best to be less and less invested in fiat while trying to acquire as many bitcoins as I possibly can. Gift cards are recently my friend, and with some satoshi cashback that is becoming very nice.

[bbc.reporter]

It appears that there is another circulating tweet warning everyone that the Biden administration will propose a capital gains tax of 80%. I am not certain if the dump caused the trolls to spread the tweet or the trolls tweet caused the dump hehehehe.