Bitcoin: “I’m waiting for the short Squeeze”
Bitcoin Twitter analyst Ki Young Ju from crypto analysis firm CryptoQuant believes it is likely that a short squeeze is coming to Bitcoin. A short squeeze can occur with assets that have been sifted in large quantities. However, if there is a sudden price increase, the open positions must be closed again. The shorter have to buy the asset to limit their losses.
Ki Young Ju currently sees the chances that a short squeeze could also occur with Bitcoin.
[Ich] wait for the big short squeeze. At the end of 2020, many people placed short positions on Bitcoin and were liquidated in the range between $ 10,000 and $20,000 before the parabolic bullrun began. At the time, 10 percent of hourly market orders were short liquidations. Today it is about 1 percent
Ki Young Ju
Waiting for a big short squeeze.
In late 2020, many people kept punting short positions on $BTC and got liquidated in the $10k-20k range before the parabolic bull-run started.
Back then, 10% of hourly buy market orders were from short liquidations. Now, it’s around 1%. pic.twitter.com/tlVdw2RQHX
– Ki Young Ju (@ki_young_ju) July 14, 2022
However, after his tweet caused a stir in the community, Ju then somewhat relativized his statement. So he added in another tweet:
Just to clarify one thing: I did not say that the parabolic bullrun begins. I’m just saying that it looks like we’re nearing the bottom and it’s now time to wait for the short squeeze to start. It could be a few more months or years until the next bullrun, we can’t know that.
Ki Young Ju
“Putting money into cryptocurrencies is gambling”
Aaron Davis, co-founder of the Metamask wallet, however, is far from convinced of everything that the crypto market has brought about. In an interview with Vice, he warned users that the current crypto ecosystem is like a casino that attracts ponzi schemes. In this context, he warned investors not to blindly put their money into highly touted projects.
[…] putting your money into cryptocurrencies is gambling. I’m not saying that the current situation is the future of finance, and that you have your savings [in Krypto] you should push. Some people say exactly that and I believe that this is extremely dangerous behavior.
Aaron Davis, co-Founder of MetaMask opposite Vice
In the interview, Davis mainly alluded to play-to-earn games from the Ethereum circle, which are based on investing money in order to (ideally) get more money out. His Metamask co-founder colleague Dan Finlay also saw the market in a gloomy light. In his opinion, bankrupt companies such as Celsius or the broker Voyager have also ensured that the crypto ecosystem is currently not in the best light.
Especially with regard to the big ICO crash in 2018, one can draw good parallels to the current situation here. While the Bitcoin price skyrocketed, many unsubstantiated ICO projects emerged that have benefited from the Bitcoin hype. A short time later, they were mostly buried in the ground. It is quite possible that many NFT and DeFi projects now face the same fate.
According to Finlay, the task of Metamask is to make the use as safe as possible. Finlay and Davis also had no influence on what the users ultimately did with their money and what opportunities other people find to pull the money out of their pockets.
We can’t stop people from building ponzis on the blockchain. It is impossible, by definition, to stretch the whole thing into a big arc and squeeze it in one direction.
Dan Finlay, Co-founder of MetaMask
But there is hope in the longer term. Here it is up to the entire crypto space to find creative solutions to the current problems.
We will know that we or someone else may have done something right if we have fought climate change or provided for more social justice. These are my two biggest hopes for the ecosystem. Of course, I’m not saying that cryptocurrencies will solve global warming, but I’m saying that this is my greatest hope. That we will get creative, maybe in terms of collective organization and crowdfunding, and maybe we will find a solution for the carbon[ausstoß]. And maybe we can beat the governments on self-regulation, because in my view they are failing very, very much in this. And for this we need creativity.
Dan Finlay, Co-founder of MetaMask
Is Bitcoin breaking the million? Could take a while.
For dessert, some hopium. Arthur Hayes, the disgraced former head of the crypto exchange BitMEX, answers the $ 1 million forecast for Bitcoin with a resounding yes. For the timeline, he is quite in line with Ki Young Ju: this may take time.
The Doom loop has begun. 1 USD = 1 EUR. Prepare for […] 1 BTC = 1 million US dollars ago. But be patient. These things take time.
Arthur Hayes, former CEO of BitMEX
Sorare: Collecting Digital Football Cards on the Blockchain
Collect limited edition digital football cards, manage your team and earn first-class prizes.
Go to Sorare
