Bitcoin is going to crash on monday

Bitcoin is going to crash on monday due to the opening of futures market where large financial institutions will be shorting the shit out of it. Prove me wrong.

 

Taking a short position on something doesn't automatically drive the price down and BTC's market cap eclipses that of the vast majority of stocks being traded.

I also have no idea what I'm talking about

 

JPM, Chase, and other large banks are almost certain that BTC is in a bubble and will be shorting it appropriately on Monday. Do I think it will crash to 0? Probably not. However, I do think that if experienced public investors are shorting BTC, it could negatively impact public perception of BTC and cause a downwards spiral to 10k$ and below.

 

They are financially motivated to say it's in a bubble because people investing in bitcoin deprives them from getting fees from those same people investing in "ordinary" investments. They want to discourage people from making investments without the user of a broker. I don't know enough about to trading to know how someone taking a short position on something actually impacts price but I don't think it does otherwise we'd have every billionaire shorting small companies profitably on a regular basis

 

i completely agree, which is why i'm planning on selling my btc before monday, waiting for a probably dip due to the futures market, and then buying back in once it stabilizes. i believe that this will only have a short term impact.

 

Think bcash will take over if legacy gets crushed?

 

I hope so

 

Shorting bitcoin is a risky investment most won't make. Nobody knows what it could go to - there's nothing to compare it to. I wouldn't short something with infinite risk.

 

I wouldn't say the banks that short bitcoin on Monday have infinite risk. It's clearly risen in price drastically in the last week which appears to be quite an unstable growth. also, you're forgetting that these centralized banks have a motive to bring down the public perception of bitcoin. even if they lose in the short term, they'll gain in the long term by de-legitimizing cryptocurrency.

 

It's possible that in response to Wall Street shorting Bitcoin that China, Korea, and Japan will pump it and force a short squeeze, resulting in a dramatic increase in price.

 

If you could accurately predict the crashes, you would be a billionaire. The truth is that the market is far too complex with more variables than you could ever consider.

 

nah, there are some pretty easy crashes you can predict as well as some easy upswings.

 

Shorting without a stop-loss is often referred to as infinite risk, because an asset can theoretically increase forever. However, in reality the risk is often the amount of collateral held in one's margin account. But anyways, shorting something like Bitcoin is incredibly risky because it is highly volatile and has historically gone up. There's no intrinsic value behind a Bitcoin, so the price can almost do whatever it wants.

With stocks, you have some basic statistics which determine their value. Often each industry has an acceptable Price Earnings ratio, and you multiply that by the earnings and can at least approximate the price of a stock. Not the case with Bitcoin. A Bitcoin could be worth $1,000 or it could be worth $50,000. There is nothing that dictates one price is more correct than the other. For those reasons, it's an extremely risky asset to short, because the price can easily double or triple over a short timespan, without any real warning or reason.

If you shorted Bitcoin one month ago, you'd owe about 2.5x the original value of your short today in USD. If you shorted Bitcoin one year ago, you'd owe closer to 15x the value. If you shorted Bitcoin today and it went to 0, you'd still only have 2x'ed the original value of your investment.

 

Maybe the fact that BTC has an intrinsic value of $800-$1000? It only costs that much to mine one. Everything else is how much you pay a miner to mine it.

 

There's also speculation on future utility, of course. In particular, the Lightning Network announcement was enough to make the price increase by nearly 50% within 48 hours.

 

Still has no real intrinsic value other than what it costs to mine it. Other than that it's all what people are willing to pay for it/how much someone will sell it to someone else. BTC is NOT money, so there's no way to actually integrate it into money transfer, other than (again) people paying a certain amount for it. That cost fluctuates in response to news releases not because anything actually happened, but because people think that they can start selling it for more, and people in response buy for more. It's all hype.

I'll let Matthew McConaughey explain it better than I can in 14 seconds:

 

lol

 

This won't happen

Shorting Bitcoin would be more risky than shorting the housing market in 2007...

Just because large financial institutions want to make money shorting, doesn't mean that this will bring the price down

The market cap for BTC is so large now atm. Even a "crash" as you predict won't last long.


Also, there is some FUD going around that futures and the ability to short BTC is a bad thing when in reality we may see BTC market Cap increase drastically solely because of futures trading.

but keep this in mind. There will only ever be 21,000,000 BTC. There are 7.5billion people on this planet....

I'm pretty sure that after futures launch we will see a massive exposure and even if 10% of the worlds millions had the slightest interest in investing in BTC the price will follow the market cap to the moon

BTC at $500,000 by 2020 is not out of the question. Shorting and longs will only increase the market cap and might just shake the coins out of the weak hands for all of us to buy

 

Bitcoin is going to crash on monday due to the opening of futures market where large financial institutions will be shorting the shit out of it. Prove me wrong.

 

MASTERRRR PREDICTOR