As with every dip, people on the cryptosphere are trying to figure out what happened in the last few days. A light at the end of the tunnel is finally here, but the post-mortem analysis are already coming out.
As we know, Elon has been very critical of the power hungry crypto miners, and his points are not without some validity, but, I'm sure in the big picture this is not the reason why we dipped as hard as we did.
You see, there are numerous crypto youtubers that are pushign these platforms. "Wanna make real money? use my referral link, and leverage your trade, make a killing". They get liquid tokens, their followers get empty promises of richness.
What we saw on this dip, my friends, is nothing more, and nothing less: Liquidity Crunch. All the bills came due, and lots of people lost it all. Yes, not 30,40% on paper like some of us have, but all.
You see, if you are leveraging your trade and the dip hits a certain threshold, you are liquidated for all your holdings to repay the loan. Market sells after market sells, the whole thing looks like doomsday is here, but it's not whales killing the market, it's gamblers killing themselves.
How do I know? Well.... because I did the same stupid shit myself once.
MenO
