Sudden Flash Crash vs Slow Bleed - Which actually kills Investor(s)?

[CryptoGirl_200x]

Happy new year everyone, I am very glad that as many of us who made it to this year made it, and hope the new year brings unimaginable blessing our way going forward.. Amen.

Now, I have something I wish to share concerning the sudden crash we experienced yesterday, which saw bitcoin crash to around 40,000+ from $45,000+.

Bitcoin so far have very much recovered, but Now..

• What do you guys think about that sudden crash?
• What do you think was playing out?

Do you really think it was all about Matrixport's report saying all bitcoin spot ETFs will be rejected by the SEC? No, not at all, it's all a game plan, a strategy to make us panic short and spot sell our bitcoins.

In crypto, learn not to care much about sudden flash crash, as long as its bitcoin we are talking about, but care more, and be most afraid of slow bleed.. I will explain this below - read on.

Investors responds to flash crash, faster than they respond to slow bleed, flash crash is a tool that is used to instigate fear, panic, causing the chicken hearted to instantly (without hesitation) dump their position(bitcoin).

Flash Crash is a tool also used by market makers to flush out over-leveraged traders, and trader who are longing late.
So after the flash crash, the market mostly recovers in no time or after a very short period of time, and those who sell their spot or short; out of panic always end up as losers.

What we investors, should be mostly afraid of is slow bleed, for this is the silent killer.

Now, this is an analogy that is scientifically proven to be true - "Place a rat in a boiling water and it will jump out immediately, but place it in cold water and be heating the water slowly, the rat will remain in that water until the water gets too hot and kill it."

Humans are reactive to sudden sharp changes in stimulus, but extremely dull and unreactive to things that occur over a long period of time.

When they want us to sell, because it's a good time to buy, they will implore the flash crash strategy, causing several investors to panic sell, thereby, giving them the opportunity to buy cheaper.

By when they want us to hold, so they can silently sell at a good price, they'll typically bleed the market slowly, not alerting us - leaving us with a persistent optimism that "reversal is coming", until will find ourselves in the middle of a bear market, with no possibility of selling without incurring a huge financial loss.

Note that every thing I said here about flash crash and slow bleed is  specifically in relation to bitcoin investments, a flash crash for altcoins may completely mean a different thing, which for example could mean a rugpull, bankruptcy and so on.

So lets learn to note that, things won't be always as they seem, market makers and manipulators will always try to take advantage of the chicken hearted investors, learn to be know when to sell, and buy back cheaper later on, and when to actually hodl, because big things are coming and they want you to sell so they could buy cheaper.

[1714632692]

1714632692

[Blitzboy]

Happy New Year, too!

This sudden crash versus slow bleed discussion is a crypto classic. My take: worrying about these changes is like attempting to catch every ocean wave. Was it pointless?

Please be honest. Bitcoin is volatile, with abrupt drops and steady draining. Why worry about causes? The Matrixport study, market manipulation, and terror tactics are temporary. Bitcoin is resilient, I think. Consider that it's still standing after the rollercoaster. Bitcoin is a long-term game-changer due to its endurance.

I have a simple strategy. Buy Bitcoin, lock it up, and live. Why worry over minor things? Bitcoin is a long game, not a quick one. It might soar 10000% from its current price! So lets not get caught up in market research. Instead, lets find other things to do. Let time work its magic on our investments. Hodling is a lifestyle, not a plan.

[Natsuu]

Happy New Year, too!

This sudden crash versus slow bleed discussion is a crypto classic. My take: worrying about these changes is like attempting to catch every ocean wave. Was it pointless?

Please be honest. Bitcoin is volatile, with abrupt drops and steady draining. Why worry about causes? The Matrixport study, market manipulation, and terror tactics are temporary. Bitcoin is resilient, I think. Consider that it's still standing after the rollercoaster. Bitcoin is a long-term game-changer due to its endurance.

I have a simple strategy. Buy Bitcoin, lock it up, and live. Why worry over minor things? Bitcoin is a long game, not a quick one. It might soar 10000% from its current price! So lets not get caught up in market research. Instead, lets find other things to do. Let time work its magic on our investments. Hodling is a lifestyle, not a plan.

Well your approach of buy, lock up, and live suggests a laid-back strategy. Instead of stressing over short-term ups and downs, you're embracing the idea that Bitcoin's value might skyrocket in the long run. It's like letting your investment ride the waves without getting too caught up in the day-to-day fluctuations. The idea is to enjoy life while trusting in Bitcoin's potential over time. Goodluck!

[pooya87]

Now, I have something I wish to share concerning the sudden crash we experienced yesterday, which saw bitcoin crash to around 40,000+ from $45,000+.

It wasn't yesterday, it was 2 days ago and it was down to $41.5k or better said the drop was at most -4.5% which is not categorized as a "crash" in bitcoin market.

• What do you guys think about that sudden crash?
• What do you think was playing out?

It wasn't a crash, a crash would be going to $39k and below.
Such small drops are normal after a big rise, specially when the momentum to rise more stops. The short term traders sell to take their short term profit out and get ready to rebuy in the follow up dip.

Do you really think it was all about Matrixport's report saying all bitcoin spot ETFs will be rejected by the SEC? No, not at all, it's all a game plan, a strategy to make us panic short and spot sell our bitcoins.

FUD can always contribute by causing a panic sell but when it comes to ETF, people still don't care enough to sell because of its rejection let alone because of some random post about possibility of it. Keep in mind this is like the hundredths time SEC has rejected different ETFs.

"Place a rat in a boiling water and

I think it's a frog not a rat

Bitcoin is too volatile for your theory to apply here though.

[amishmanish]

--quote--No, not at all, it's all a game plan, a strategy to make us panic short and spot sell our bitcoins.

In crypto, learn not to care much about sudden flash crash, as long as its bitcoin we are talking about, but care more, and be most afraid of slow bleed.. I will explain this below - read on.

I appreciate the analysis but do people actually really care about this now or everybody just repeats the same old lines about bitcoin and the supposed elite who want you to short-sell so they can fill their bags?

I hope that newbies come up with some fresh ideas and perspectives because these arguments have been hashed and rehashed umpteen times on the forum. I dont think anybody is out there to get your bitcoin from the common people. What the governments would really want is for those miners to just shutdown and people to stop taking bitcoin seriously. The so-called elites could not be less concerned about whatever us plebs hold. Those of them who really want to get in on the game are the ones buying up Michael Saylor's debt bonds.

The market has matured enough in terms of volatility that nothing can be explained by whale actions now. The news cycle definitely affects the market just like everything else. Those who want to hold, hold. Those who want to trade the chops, do it at their own risk. There is no great conspiracy theory behind it all. Just that its an ecosystem that needs to keep running.

[tbct_mt2]

Now, I have something I wish to share concerning the sudden crash we experienced yesterday, which saw bitcoin crash to around 40,000+ from $45,000+.

It is about 10% correction that is better than many Bitcoin corrections I witnessed since 2017. It is not too deadly correction in my opinion but correction itself is very good for a bull market.

Because this market has many people, who are smart, stupid, greed, FOMO, fear and so on. Corrections are necessary to clean up the market, to kill greedy people who gamble with leverages. When they are out forcefully by market crash and liquidations, the market has better conditions to continue its bull run, with less selling pressure.

What we investors, should be mostly afraid of is slow bleed, for this is the silent killer.

Investors must do some basics for their investment.

Store their bitcoins in self custody wallets.
Don't use leverages because margin calls are harmful or even deadly for their position and money.

With these basic strategy, investors won't be affected by short term corrections of Bitcoin if the trend is bullish.

[bitbollo]

these corrections in this type of markets are quite common and do not impress either the holders or the traders.
it is simply a market with high volatility and simple rumors can create significant price movements.
as other users have also pointed out... in the past there have been many even more impressive ones...

[adaseb]

What kills most investors in crypto or even stock markets are the slow bleeds.

Reason why is because generally alot of investors keep averaging down, and they have a horrible average and huge position even the stock/crypto still keeps dipping. Eventually what will happen they won't be able to take the pain anymore and they will just sell. Or they will just sell out of boredom.

Most investors don't use high leverage or stop losses where flash crashes would cause the most financial damage. Most position type of traders would be fine in a flash crash.

[icalical]

Speaking form experience, if a flash crash happened, I wouldn't even touch the investment that's just experiencing flash crash. I will just left it, and most of the time, it will recover. Tho I will still sell it lower than when I entered the market but it still just a small loss. But when 'slow bleeds' happened, my instinct will lead me to do averaging down, buying more of those coin/investment. But then I realize that I loss too much and there are few times I finally give up and I loss more than when the flash crash happens.

All that being said, whether it's flash crash or slow bleed, if a traders have good money management and emotional management, and obviously they can do good analysis on the market they won't be 'killed' by any type of crash, sure they might suffer from some loses but it will not be fatal.

[PrivacyG]

Any type of negativity will wipe out a particular part of the investors.  Sudden crashes wipe out the weaker part of the active Bitcoin investors while slow bleeding wipes out a much larger percentage due to the bleed happening over a longer time span.

You are active in the Market.  You just bought 1,000 Dollars worth of Bitcoin.  You see Bitcoin suddenly crash by 10 percent in minutes, what do you do?  If you are weak you probably sell at the first opportunity you have.

If you are inactive it is irrelevant whether there is a crash or not because you will not be there to actively try to find a way out during the crash.  Slow bleeding will still affect the weak however.  You see your money becoming less and less worth what it used to be.  What do you do, sit down and take the opportunity to Dollar Cost Average or sell in panic thinking there will be an opportunity to buy lower at some point or that Bitcoin is dying AGAIN for the thousandth time?

Only the weak investors get killed in Bear Markets.  The strong and smart find a way to play it out.

[lombok]

Both are capable and have the potential to kill investors. When investors lose their fighting spirit and confidence, this can be a strong reason why investors give up and leave the market. Of course, this is not the main reason, and there are many other influencing factors.

[Casdinyard]

Happy new year everyone, I am very glad that as many of us who made it to this year made it, and hope the new year brings unimaginable blessing our way going forward.. Amen.

Now, I have something I wish to share concerning the sudden crash we experienced yesterday, which saw bitcoin crash to around 40,000+ from $45,000+.

Bitcoin so far have very much recovered, but Now..

• What do you guys think about that sudden crash?
• What do you think was playing out?

Do you really think it was all about Matrixport's report saying all bitcoin spot ETFs will be rejected by the SEC? No, not at all, it's all a game plan, a strategy to make us panic short and spot sell our bitcoins.

In crypto, learn not to care much about sudden flash crash, as long as its bitcoin we are talking about, but care more, and be most afraid of slow bleed.. I will explain this below - read on.

Investors responds to flash crash, faster than they respond to slow bleed, flash crash is a tool that is used to instigate fear, panic, causing the chicken hearted to instantly (without hesitation) dump their position(bitcoin).

Flash Crash is a tool also used by market makers to flush out over-leveraged traders, and trader who are longing late.
So after the flash crash, the market mostly recovers in no time or after a very short period of time, and those who sell their spot or short; out of panic always end up as losers.

What we investors, should be mostly afraid of is slow bleed, for this is the silent killer.

Now, this is an analogy that is scientifically proven to be true - "Place a rat in a boiling water and it will jump out immediately, but place it in cold water and be heating the water slowly, the rat will remain in that water until the water gets too hot and kill it."

Humans are reactive to sudden sharp changes in stimulus, but extremely dull and unreactive to things that occur over a long period of time.

When they want us to sell, because it's a good time to buy, they will implore the flash crash strategy, causing several investors to panic sell, thereby, giving them the opportunity to buy cheaper.

By when they want us to hold, so they can silently sell at a good price, they'll typically bleed the market slowly, not alerting us - leaving us with a persistent optimism that "reversal is coming", until will find ourselves in the middle of a bear market, with no possibility of selling without incurring a huge financial loss.

Note that every thing I said here about flash crash and slow bleed is  specifically in relation to bitcoin investments, a flash crash for altcoins may completely mean a different thing, which for example could mean a rugpull, bankruptcy and so on.

So lets learn to note that, things won't be always as they seem, market makers and manipulators will always try to take advantage of the chicken hearted investors, learn to be know when to sell, and buy back cheaper later on, and when to actually hodl, because big things are coming and they want you to sell so they could buy cheaper.

Happy New Year!

First off, great and informative post you got here going, there's not a lot of people who know much about the difference between the two, let alone their existence in the first place so contents like these are surely helpful in opening the people's eyes. Now back to your questions

The thing is that for me, they both are equally as deadly and damaging, but for different locales for that matter. Flash crashes will affect people with paperhands, people who are in it for the quick profit and will sell their spot immediately at the first sight of a dump. On the other hand, slow bleeds will affect those who have diamond hands in this industry—people who are known to hold all throughout the rain and the storm in the name of crypto and profit. Not because they are dull and unreactive to the consistent drops, but because they have complete faith in the cold that they hold. It's way easier to spot a flash crash, a slow bleed is harder to figure out but it's mostly circumvented by the market's pulse anyway so it's not as damaging as most people make it out to be, but it definitely puts a dent to your portfolio especially if you're not careful enough to do audits and shit.

At the end of the day, I'd still rather be a diamondhand in the midst of a slow bleed than be a paperhand that yanks at the sight of a dump. Especially when it comes to bitcoin who is cyclical in nature always having a stake in it regardless of the market's situation is going to be the smartest and best thing that I could do for myself. 

[Richbased]

Do you really think it was all about Matrixport's report saying all bitcoin spot ETFs will be rejected by the SEC? No, not at all, it's all a game plan, a strategy to make us panic short and spot sell our bitcoins.

Though it may not really be Maxtrixport's report on possible disapproval of spot Bitcoin ETFs by SEC, but the report is also part of what caused the panic because now that we're waiting for Spot Bitcoin ETF approval, so many investors are at alert of what the outcome will turn out to be so with the report of such nature can cause anxiety among crypto investors more especially those that are only interested in short term investments.

Even if it was a strategy or a game plan to cause panic in other for investors to sell of their coins, a good and long term crypto investor doesn't really need to be moved by such a report more especially a Bitcoin investor because even if spot Bitcoin ETFs ain't approved by SEC it doesn't really make any much difference as Bitcoin will still continue to soar among other cryptocurrencies.

[libert19]

Real investors wouldn't even be bothered by sudden flash crashes, they would keep holding their bags, if anything they will take advantage of the sudden crash.

In sudden crashes, it's either spot newbies who dump their bags due to fear and others are people having leveraged trades open who get hit, their positions getting liquidated is what causes further sharp decline, but sooner or later market rebounds.

We have witnessed dump now, check in week or two, coins will be at their recent peaks again.

[Darker45]

I think "sudden flash crash" is more damaging than "slow bleed". With the former, you can even hardly respond. Your position is already closed before you know it. Your money is already liquidated before you can even make an analysis and act on it. With the latter, at least you have enough time to observe and analyze the market, make preparations, change position if necessary, and so on.

I don't think the sudden fall of the price recently is caused by Matrixport's report. That wasn't even a popular opinion. And what is even Matrixport? That report was nothing. That was too shallow a reason for a huge investor to dump its holdings.

[pinggoki]

Flash crash in my opinion would kill an investor because they never saw it coming and at the same time they didn't have the time to get out and the moment that they try to sell, there will be people that's already buying back so they get out much lower than the initial crash but they can't get back again because the price starts going up again due to the people that are buying at that dump or crash. Flash crash is also the better one because it's a good time for people that's waiting for an investment in this case bitcoin to go down to a certain price so they can buy to get their money's worth.

[wallet4bitcoin]

Slow bleed is better.

There is always time to intervene in the case of a slow bleed, investors can decide to just cash out what is left of their loses and hold onto it but when its a flash crash that doesn't retrace almost immediately, it causes panic in some people and in most cases, investors not too strong into ivestment or not expecting a downturn might have help challenges.

But the market actually chooses what it gives so who cares whether its a slow blee or a sudden crash, the market gives what it cooses to give

[davis196]

Do you really think it was all about Matrixport's report saying all bitcoin spot ETFs will be rejected by the SEC? No, not at all, it's all a game plan, a strategy to make us panic short and spot sell our bitcoins.

Stop being a crypto noob and don't overthink about every price movement. It's normal for Bitcoin to have a volatile price.
You are coming up with the conspiracy theory, that someone is manipulating the market by creating false panic. This might be true, but it might be a lie. Do you have any verified information to back up your theory? If you don't, then this is just spreading rumors and gossips about "the crypto whales want to manipulate the price and steal money from the average Joe" type of BS.
The BTC price went from 45K to 43K and now it's sitting at around 44K. There's no reason to be obsessed with such small fluctuations.

[tread93]

As long as you HODL and sell for much higher of a price when the market is in a good place as far as i'm concerned you're doing alright. Define "good place" though. There are a lot of regretful sellers who sell all of their holdings too soon and miss out on huge gains, there are also some that never sold at all, some never even bought! I think the most important thing here is to hold on as long as you possibly can and never settle for a low return. Find your number you're happy with, hope and pray to God it gets there and when it does sell a portion or all so that you can live your life w/o regrets.