[2023-06-10] Forbes: ‘Bloodbath’—Sudden $1 Trillion Crypto Crash Sparks Fresh...

[pawel7777]

Here's a press hit from Forbes, from 3 days ago. I feel like the market situation is far from the "bloodbath", in fact, I'm surprised that the recent SEC's actions didn't cause a much greater price drop, but I guess exaggerated headlines generate more clicks.

‘Bloodbath’—Sudden $1 Trillion Crypto Crash Sparks Fresh Coinbase Warning And Tanks The Price Of Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon And Solana

https://www.forbes.com/sites/digital-assets/2023/06/10/bloodbath-sudden-1-trillion-crypto-crash-sparks-fresh-coinbase-warning-and-tanks-the-price-of-bitcoin-ethereum-bnb-xrp-cardano-dogecoin-polygon-and-solana/

Bitcoin, ethereum and other major cryptocurrencies have suffered a sudden crash after a week that saw some of the biggest crypto companies rocked by shock regulatory action—with further bombshells on the way.

The bitcoin price has dropped to around $25,000, down 5% to its lowest level since March and mirrored by declines seen by the ethereum price. However, other top ten cryptocurrencies—BNB, XRP, cardano, matic, dogecoin and solana—have all suffered far larger declines, losing between 10% and 25% in mere hours.

Crypto's latest crash—plunging the crypto market to around $1 trillion and described as an "absolute bloodbath" by one trader on Twitter—comes as one of the top global credit rating agencies, Moody's, dropped its outlook on embattled bitcoin and crypto exchange Coinbase from stable to negative.
(...)

[LeGaulois]

Humm... It's a bit of an exaggeration... for now, but if the witch-hunt continues in the US, it could become one with a domino effect. Because let's face it, it's not going to end quickly.
In a few weeks or months could be quite appropriate to use "bloodbath".

It's important to remember that, even if this happens, the market will regain its losses later (probably months later).
(I'm at least talking about Bitcoin, I'm not interested in altcoins.)

What's interesting is to see
- half of the bitcoins stocked by americans centralized exchanges have been transfered out
source Bitcoin reserve in American exchanges is decreasing

- Decentralized exchanges are seeing a nice jump from this exodus.
source DEX volume in Uniswap, PancakeSwap, dYdX jumps after the SEC lawsuit

I can't believe people realize now why they shall use a DEX and not a CEX, but hey let's hope...


#CZBinanceInJail  

[Kakmakr]

Humm... It's a bit of an exaggeration... for now, but if the witch-hunt continues in the US, it could become one with a domino effect. Because let's face it, it's not going to end quickly.
In a few weeks or months could be quite appropriate to use "bloodbath".

It's important to remember that, even if this happens, the market will regain its losses later (probably months later).
(I'm at least talking about Bitcoin, I'm not interested in altcoins.)

What's interesting is to see
- half of the bitcoins stocked by americans centralized exchanges have been transfered out
source Bitcoin reserve in American exchanges is decreasing

- Decentralized exchanges are seeing a nice jump from this exodus.
source DEX volume in Uniswap, PancakeSwap, dYdX jumps after the SEC lawsuit

I can't believe people realize now why they shall use a DEX and not a CEX, but hey let's hope...


#CZBinanceInJail  

I think they use a CEX because it is regulated and perceived to be a safer option to "store" their tokens. We have to remember that most people that are invested in Crypto are here for the speculation and profits and they want that to happen in a secure manner. (Most of them still believe in centralized entities like Banks and the Stock Exchange)

We face some very big obstacles, with the SEC attacking one of the largest exchanges, but we have faced many of these challenges before and we will simply ride it out again. 

[SamReomo]

- Decentralized exchanges are seeing a nice jump from this exodus.
source DEX volume in Uniswap, PancakeSwap, dYdX jumps after the SEC lawsuit

I can't believe people realize now why they shall use a DEX and not a CEX, but hey let's hope...


#CZBinanceInJail  

I don't think that decentralized exchanges will ever be able to compete with centralized exchanges. The Sec's actions against Binance were purely to cause panic in the market but I'm not sure that why they needed to create panic in first place when even Binance wasn't doing any damage to US users? I think they did that to stop US based investors to put more money into Bitcoin because of the fear that when more dollars are invested into Bitcoin the economy might face more inflation due to that.

Sec and Binance have already come up to a negotiation deal and they will soon sort out the problems. In future Binance US will be highly regulated and the US government might get a way to access every trader's history in order to protect the users from any type of financial damages. Or they might want that to impose taxes on the crypto traders to fix the inflation in their community, and we will know that only when the time comes.

I'm not against decentralized exchanges but in their current state they won't be able to compete with centralized exchanges like Binance and some others. They truly are best for the ones who prefer privacy over ease of use, but unfortunately most users don't care about privacy. The only thing they care about is the ease of use and the features an exchange offers. In that scenario I don't think that there's any other exchange providing such good features as Binance, and such exchange will always be helpful for the growth of the crypto-community.

[pawel7777]

It's important to remember that, even if this happens, the market will regain its losses later (probably months later).

What makes you so sure about that? Depending on how severe the crypto crack-down will get and if it spreads globally, then it's possible that the market will not go back to the same price/volume levels at all, or at least not in the foreseeable future.

I can't believe people realize now why they shall use a DEX and not a CEX, but hey let's hope...

DEXs are a good way to protect you from scammy CEXs, but they don't offer any real resistance to crypto regulations. Assuming you would want to exchange crypto/fiat at some point - you're still at the mercy of the regulators and whether or not they allow crypto/fiat exchange.

[Carlton Banks]

Assuming you would want to exchange crypto/fiat at some point - you're still at the mercy of the regulators and whether or not they allow crypto/fiat exchange.

but that's the crux of decentralized currency's raison d'etre, is it not?

unless it becomes impossible to simply give central bank currency to other people without even the slightest risk of the transaction being delayed and/or reversed, exchanging said currencies for Bitcoin (or whatever else) will always be possible, whether the so-called authorities like it or not

in a world where that becomes truly impossible (at least in practical terms, and we're for sure getting closer to it), the actual currency itself loses it's status as well as it's value, because it is not a meaningful means of exchange any more (which is far more serious than simply losing relative value to other tokens for trading). It ceases to become proper money in the most fundamental sense, and it will hence be rejected by those who should apparently be subjected to it

one way or another, the instrument with the best money properties will win out.

[pawel7777]

but that's the crux of decentralized currency's raison d'etre, is it not?

In theory - yes, in practice - crypto is most commonly used as a form of investment, so the ability to exchange it for fiat/other goods is crucial for that purpose.
It still has the potential of becoming fuel for an alternative economy if the traditional fiat system gets overly restrictive, but that won't be easy to achieve.

unless it becomes impossible to simply give central bank currency to other people without even the slightest risk of the transaction being delayed and/or reversed, exchanging said currencies for Bitcoin (or whatever else) will always be possible, whether the so-called authorities like it or not

Banks already have systems of flagging suspicious transactions, plus, high penalties for illegal/unlicenced P2P trading could make it simply too risky for the sellers.

in a world where that becomes truly impossible (at least in practical terms, and we're for sure getting closer to it), the actual currency itself loses it's status as well as it's value, because it is not a meaningful means of exchange any more (which is far more serious than simply losing relative value to other tokens for trading). It ceases to become proper money in the most fundamental sense, and it will hence be rejected by those who should apparently be subjected to it

one way or another, the instrument with the best money properties will win out.

Sure, but this rule only works when you have the freedom to choose an alternative to such failed currency. In a scenario where crypto trading is delegalised, I can't imagine it replacing fiat, even if the use of fiat is massively restricted. Especially if fiat is still good enough to use for the purchase of government-approved goods.

[Carlton Banks]

from the perspective of a highly "westernized" finance infested economy, I understand your position

but that represents only one portion of the world, and it's shrinking in influence and dominance

the rest of the world is still made up of alot of small independent businesses, and they didn't forget the cultural reasons that those places remain that way. Look at India or Nigeria, huge economies where tough crackdowns on real decentralized capitalism led to total failure for those "governors" who tried. These cultures all know the escape routes, and aren't afraid to use them.

and that trend is only spreading, as people are being forced into it, ever closer to the literal borders of the western over-financialized system (Turkish lira is failing faster and faster these days, and Ankara and Istanbul are full of open cryptocurrency trade). the so-called PIIGS countries of europe will be the powderkeg imo, as the prevailing attitude there is to take what they want of the financialized overly-controlled stuff, and leave the parts they don't like.

so I think your focus on the "on/off ramp" argument is flawed, and really I said it in my other reply: real people know they have real stuff to trade, and won't trade it for money that is too dysfunctional. Period.

[Woodie]

Am looking at price right now and am thinking this is normal price movement to be honest,  I don't understand why we calling for a bloodbath when price is pretty much ranging for the last couple of months..

- Decentralized exchanges are seeing a nice jump from this exodus.
source DEX volume in Uniswap, PancakeSwap, dYdX jumps after the SEC lawsuit

I can't believe people realize now why they shall use a DEX and not a CEX, but hey let's hope...

#CZBinanceInJail  

The only downside of a Dex is that certain blockchains aren't supported which means a centralized exchange will still be needed otherwise to fight off all these regulatory battles it has to be the Dex way.

Btw I see the hashtag #CZBinanceInJail, could this be the course of action he is likely to face ? Or by law he is protected and only the company can be affected by this...

[cr1776]

from the perspective of a highly "westernized" finance infested economy, I understand your position

but that represents only one portion of the world, and it's shrinking in influence and dominance

the rest of the world is still made up of alot of small independent businesses, and they didn't forget the cultural reasons that those places remain that way. Look at India or Nigeria, huge economies where tough crackdowns on real decentralized capitalism led to total failure for those "governors" who tried. These cultures all know the escape routes, and aren't afraid to use them.

and that trend is only spreading, as people are being forced into it, ever closer to the literal borders of the western over-financialized system (Turkish lira is failing faster and faster these days, and Ankara and Istanbul are full of open cryptocurrency trade). the so-called PIIGS countries of europe will be the powderkeg imo, as the prevailing attitude there is to take what they want of the financialized overly-controlled stuff, and leave the parts they don't like.

so I think your focus on the "on/off ramp" argument is flawed, and really I said it in my other reply: real people know they have real stuff to trade, and won't trade it for money that is too dysfunctional. Period.

Yes.  The more people that are forced to use crypto the stronger it gets and eventually there will be the ability to not have to get out of it.  Just like in the EU you don't need to get out of the euro.  Or the dollar in the US. etc.  There will be no or little need for an on/off ramp for bitcoin, you will just use it like you would other currency except that you won't fear 149% inflation as in Argentina or high inflation like the US or EU have been experiencing.   And you won't lose half the purchasing power of your money over 20 or 30 years.

Regulation is helping people realize the value of a non-fiat, non-government control asset if they didn't already.  Many people already knew, but a lot of people don't realize what 2-3% inflation does to the value of your euro, dollar etc over 10, 20, 30, 40 years and they are a lot poorer for not realizing it.  The people of Venezuela, Argentina, Turkey, Sudan know the destruction caused by inflation, but much of the rest of the world have become inured to a 2-5% annual inflation rate.

[pawel7777]

Yes.  The more people that are forced to use crypto the stronger it gets and eventually there will be the ability to not have to get out of it.  Just like in the EU you don't need to get out of the euro.  Or the dollar in the US. etc.  There will be no or little need for an on/off ramp for bitcoin, you will just use it like you would other currency except that you won't fear 149% inflation as in Argentina or high inflation like the US or EU have been experiencing.   And you won't lose half the purchasing power of your money over 20 or 30 years.

I wish that was true, but it's simply not. The difference between fiats and Bitcoin is that you have to use the former to pay taxes, bills, or make large purchases (i.e. house). If Bitcoin is declared illegal by entire developed world, it will be practically unusable. Sure you could participate in an alternative economy, risk penalties to make some small purchases, but you won't be able to use it for any significant transactions.
Even the the use of the Euro in the form of cash gets crippled constantly with more and more restrictions i.e. on the maximum cash transactions and limited cash withdrawals options.

[Carlton Banks]

If Bitcoin is declared illegal by entire developed world, it will be practically unusable. Sure you could participate in an alternative economy, risk penalties to make some small purchases, but you won't be able to use it for any significant transactions.

that's not how it's worked in recent history. The Soviet Union had similarly repressive rules on low-level trade, and the free market was thriving (but just for trustworthy people, naturally)

with attitudes like what you're displaying here, people wouldn't trust you, so I understand how you can't imagine it.

I spent the Covid-19 lockdowns:

• going to cool (illegal) parties
• buying food from farmers and from the backdoors of small independent shops
• crossing borders of "nations" in carefully chosen places (using "off-road" transport of various descriptions ) when needed

my guess is you were wearing 5 masks, swimming goggles and kleenex boxes on your hands and feet (Howard Hughes style ) and a hula-hoop suspended over your shoulders to enforce "safe-distancing"

good luck with your "safe" choices, but i'm gonna stick with living dangerously