The Bitcoin Flash Crash was huge, no question about it. But what does the scene say about the course quake? The opinion ECHO.
May 19th was a historic day in Bitcoin land. After the rate of the crypto reserve currency had stumbled for some time anyway, Bitcoin said goodbye to wishes for an imminent new all-time high on this day for the time being into the realm of the imagination. Around noon on May 19, the price fell within minutes from 39,000 to 31,000 US dollars. A price slide of 20 percent in a very short time – that was also historic for BTC.
How are things going now? We take a look at 5 reactions from the scene.
Dave Portnoy: Buy the Dip!
“If you believe in cryptocurrencies, you should love this dip,” says financial influencer Dave Portnoy.
“I still believe in“ Buy the Dip ”. If you believe in crypto, you should be happier today than ever, ”says Portnoy, referring to the supposedly cheap entry-level prices.
Was that the bottom?
The SOPR is at a record low. SOPR stands for Spent Output Profit Ratio and refers to an on-chain statistic that compares the ratio of UTXOs that were spent at a profit and UTXOs that were spent at a loss. In short, an SOPR> 0 shows that the majority of the BTC sold were sold at a loss. The SOPR was historically low on May 19. This in turn points to a so-called surrender event in which “weak hands”, i.e. short-term speculators, were flushed out of the market.
And indeed: Bitcoin only briefly touched the $ 30,000 mark and then moved north again.
in the Bull market nothing new
For newbies, such a dip can be worrying. But a look at the overall chart reveals that course corrections are part of it.
Feast for Bitcoin whales
While Neu-Hodler are in front of the shards of their fortune, whales are happy about cheap BTC. There is no other explanation for the fact that on the day of the crash, almost 20,000 BTC was withdrawn from the Exchanges accounts. Of course, it remains unclear who bought the Bitcoin worth almost a billion US dollars. Twitter user @BTC_Archive however sees the signature of Bitcoin whales in the transaction.
When in doubt, zoom out
Of course, it’s not nice to see 20 percent of your savings vaporized within a day. But long-term oriented hodlers should still be in the green. It wasn’t long ago that BTC replaced its long all-time high of $ 20,000. To be more precise, it was only five months ago, as @vakeraj writes.