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.

Not Elon

If you think Musk to to blame, then you might not fully understand what crypto is supposed to do. Of course the opinion of someone can affect markets, and we've seen this in the legacy stock market as well, but it should not be the thing that can destroy it all.

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.

Too much gambling

A lot of new people in this space are tempted, and I do get it. As a matter of fact, back when I first got into crypto I did the same thing. Why would I not over extend myself, why would I not leverage, go long, if this is going up to a million, so says Mcaffee.

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.

Some advice

For those who care to listen, that is. Don't.... just don't. Leverage trading is for those who either don't give a flying, or have enough money to risk a big chunk and be ok. If you are putting things on credit cards, asking for a friend to loan you money to win it all back, you are digging your own grave here.

How do I know? Well.... because I did the same stupid shit myself once.

MenO