?? $100 million BTC Dump - Y tho?
Namashkar. This is the doodhwala. The crypto newsletter that brings a smile to your face, just like when your crush acknowledges your existence.
She may have mistaken you for someone else, but hey — a win’s a win!
Here’s the crypto bro-down of the day:
Here’s why BTC fell to $18k
Less than a month ago, BTC was at $25k, and everyone and their nani-ji was asking, “Wen moon?”
Now, we’re back to where we were two months ago ??
Ahh shit.
Why did crypto prices act like Bengaluru this week and started sinking?
Here’s what we think:
Stocks ???Cryptos
The stock market has been going down down over the past few weeks and it’s causing a TUG on crypto.
Why is crypto behaving like stocks tho?
Crypto and stocks (especially high-growth stocks like tech companies) are seen as “growth assets” i.e. assets which will grow in price over time when new tech is adopted.
These assets are ???during bull runs but are ???during bear runs.
BTC and Nasdaq are like Ranveer Singh and Arjun Kapoor ??
Rates rates rates
Last week, Sir JP (not to be confused with Sir Jadeja)?said?interest rates would be raised even more in 2022.
Why will this affect crypto?
Here’s the thought process:
Interest rates increase → Borrowing becomes expensive → Less money to invest in assets + Less money to invest in businesses → Less inflow into Bitcoin and other growth assets
Bitcoin reacts to Fed rate hikes like me when I find an elachi in biryani
Liquidation cascade
Oops ???two complicated words.
My bad, what I meant to say was — 2 much degen trading.
See, crypto is unlike any other financial market.
Erryone loves to trade Bitcoin with two secret ingredients:
Derivatives are contracts representing financial assets which allow you to trade the asset without actually holding the asset (jaadu right?).
You can even do things like lock in future prices, and buy (or sell) it on future dates.
Leverage is a way to increase exposure which leads to ???reward but ?? risk.
The entire crypto market’s daily derivatives volume was about $130 billion at?its peak.
The spot volume is less than half that or $50 billion a day.
And the leverage on that is almost 3 times for BTC.
In simple Angrezi:
The value of open BTC derivatives contracts is 3 times the amount of coins on cryptocurrency exchanges.
领英推荐
With this massive leverage, any small movement in BTC’s price leads to a?massive effect?in the derivatives market.
For context:?When BTC dropped to $18k yday, about $100 million worth of derivatives contracts were?phoosh?wiped out, just like India’s hopes of the Asia Cup victory ??
The Last (for real!) BIG update before the MERGE?
The whole world is talking about the Merge.
No, not the sub-Merge that Bangalore finds itself in due to the crazy rains.
It’s the highly (highly!) anticipated ETH Merge.
There have been so many events leading up to it with weird names like:
(honestly, why can’t they just name it like Bunty aur Bubbly ?? ♂?)
And now comes the next and the LAST event before the Merge —?Bellatrix?(yet another random name)
This upgrade was successfully completed yesterday and now everything is looking set for the D-day of September 15.
But kya hai yeh Bellatrix?
Here’s what we found after a quick Google search:
“Bellatrix was an extremely powerful and dangerous witch, trained by Lord Voldemort himself. She was a mistress of the Dark Arts, an incredibly skilful?Death eater”
Wait… is this what the Merge is about? Harry Potter <> Vitalik?
That can’t be right.
Here’s what Bellatrix really is:
Bellatrix ensures that the validators can produce updated beacon blocks, which hold the data for merging the consensus layer and the proof-of-work layer.
In doodhwala’s terms?— it basically prepares the chain for the Merge.
That’s why it's important.
Even our ETH Maharaj gave us an update:
(Btw Vitalik also told us his favv newsletter is the doodhwala)
In anticipation of the Merge on September 15, a lot of exchanges have laid out plans as to how they will be embracing it.
Exchanges and lenders like:
Will halt deposits and withdrawals of ETH until after the merge.
This is to see if any forked tokens will be created and explore how they can potentially support it.
All in all, with the final upgrade before D-day now completed, we are really excited for September 15.
Hope the MERGE is HUGELY successful. ??
Chaach and Charts
People have been buying ENS names like crazy.
But how many of them have bought more than just ONE?
69% of the holders only have 1 ENS name. (sweet number tho)
(is doodhwala the rare anomaly to hold like a gazillion ENS names? ??)
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