Hello friends,
what happened tonight surprised me a lot. It is well known that crypto is very volatile and can grow by 20% in just a few hours. But the breakout of tonight was insane and I can not understand it. Thats why I like to start a discussion in which the causes and effects are discussed exactly. The BTC price was sky rocking in about 16h hours from 7400$ to 10400$ and with the BTC price almost all Altcoins were following the rally. In fact, the total crypto market capitalization increased from 206 billion Dollar to 262 billion Dollar!! More precisly, 56 billion dollars in 19h pumped into the crypto market !!
This is totally amazing and of course there are some questions:
- Where does the money come from? From institutions and banks? From large investors?
- Why do nearly all Altcoins quickly increase at the same time?
- On which exchanges can be trade so much money in such a short time?
- Who knows about such breakouts before?
- etc ...
In addition, BTC was in a downtrend before 24h and close to a DeathCross. The resistance was very strong and yet my short-possition was blown up like a nuclear war star and totally shredded. Of course everything is possible, but it is incredibly impressive how much money flows into the market in such a short time and apparently everything at the same time and with nearly all Altcoins.
I would be pleased if we put the reason for the understanding of the mechanisms in this thread exactly together.
Now I need to get some sleep to get a clear head again .. Thanks for answers!!