jakewoodhouse on Nostr: I am coming around the firm conclusion that the sharp sell off was almost entirely ...

I am coming around the firm conclusion that the sharp sell off was almost entirely due to leverage in the system

Specifically those that took LTV 50% at 110k usd thinking it was going to 150k

The likes of Ledn “you don’t have to sell your Bitcoin”

As price flew down, margin calls meant a cascade of forced sellers

Now it’s happened, there is a firm bid from the same people that levered up

Who see Bitcoin at sub 70k as huge value

quoting
nevent1q…g7ay

Plebs scrambling to add collateral

One I know

Liquidation is 61k

Needs to come up with 50k asap

Ooft