Post
Topic
Board Trading Discussion
Re: switching to fiat money vs shorting Btc as a consistent hedging strategy
by
redwine49
on 05/05/2021, 09:04:34 UTC
Your scenario is an extreme one though, from $60k to $30k is not just a normal drop it is a catastrophic market crash that is not going to happen that easily and is definitely not a regular thing. Usually we see smaller drops of 10% which is actually the most regular thing in this market and bigger "crashes" are around 30% most of the times.
Your exposure and the risks you are talking also decreases by a lot when you consider the smaller size of the drops. But generally speaking shorting is always riskier and shorting bitcoin specially when it is in a bull market has a bigger additional risk.
I totally agree with niccolo_21. If we look at bitcoin chart history.
The bitcoin bullrun started last year march 2020
bottom 3-5k$/bitcoin wednesday march 18th,2020. But Until now we don't get any significant correction.
We think shorting bitcoin from 60k to 30k$/bitcoin is good compare to another scenario 60k to 90k$/bitcoin.