I'm now completely convinced that this entire drawdown - which may have been started by API problems on Binance, but if it hadn't have been that it would have been something else - is all about liquidating bitcoin backed loans.
It's a terrible incentive sitting out there in the market. A HUGE pot of bitcoin that is suddenly up for grabs at LOWER prices. And this world is full of rich people who want our coins.
If you needed liquidity above $100k you had two options, sell or take a loan out. Of course there were lots of companies eager to sell you the dream of getting liquidity without selling your bitcoin, unfortunately that's all that is, a dream.
We've been sold a lie that bitcoin is the best possible collateral because it's liquid 24/7! Well sure that makes it amazing...FOR THE LENDER! For the borrower it just puts a target on your back.
You thought you were a hardcore hodler, but you just posted your coins for sale at $58k! And guess what? There are buyers who want that deal!
We're going to go down until every reasonably accessible bitcoin being held as collateral is freed up and sold to someone that ain't one of us! If you avoided taking out a loan, congrats! If somehow you have some dry powder now, amazing, you deserve these cheap sats.
If you're looking at liquidation even anywhere in the 50's, I'd consider cutting your losses and closing your loan with collateral. If you can get your margin call price into the 40's I would hope you would be safe, but who knows. There are no rules in a truly free market.
