4 ms·
happening in 5 minutes means that bitcoin whales are still a bunch of market noobs. On the stock market when a whale wants to get out of a position, they eke o
by formvoltron 4y ago
happening in 5 minutes means that bitcoin whales are still a bunch of market noobs. On the stock market when a whale wants to get out of a position, they eke out of it slowly, using an algorithm to sell 13 out of 20 bumps up.
- tgtweak 4y agoYou don't have a choice when you trigger an automated liquidation due to leverage position. If you had $1M on loan (to pump some shitcoins of course), and your collateral is $2M of bitcoin at $40,000 - and the coin drops to $20,000, the system will automatically liquidate the bitcoin to cover the position. This, combined with automated stop losses and people getting out by selling (whale outs) leads to huge dives like this.
- IAmGraydon 4y agoI don't know. If this was a margin call, doing it so quickly and at a time of relatively low liquidity (2:30 AM on Saturday) exposes them to a lot of risk. I mean they dropped the market over 6% instantly and as much as 8% once the market reacted. That's a great way to lose your capital. I guess it's possible, but extremely sloppy if it is a margin call.