Current ATH hit the 1.414 level and now consolidating btw the latter and 1.272. Should the price break down, it is likely we may test @$19,666.Conversely a breakout should take us approx @$61,330. I am going to guess for the latter. Not investment advice.
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I recently came across this article on the potential demise of USDT and its potential impacts on BTC.
If the anonymous author is correct a failure in Tether could have significant impacts on the price of BTC. For those who don't know Tether is a stable coin that 'claims' that it is backed by a traditional fiat currency. However, a lot of speculation is circulating around as to whether or not the company that runs Tether actually backs the coin with traditional fiat. See this recent article suggesting that the the traditional fiat currency backing is in fact not happening.
The issue is that a substantial amount of daily BTC flow is coming from Tether. See chart below from Bitcoin, Altcoin Aggregated Volume and Cryptocurrencies Flow chart (cryptometer.io)
If Tether were to fail, this could set-off a chain reaction. I have evaluated arguments suggesting this creates a BTC liquidity crisis and that it could potentially create a price spike in BTC.
The question I have is what would the likely outcome be?
I have thought through various scenarios. I am interested in others opinions and insights on the matter.
Just watched the Jeff Snider interview.
The main points seem to be:
The path forward in not clear and with Bonds, equities, BTC and commodities all priced for perfection, one of these four shoes are going to have to drop. The chasm that is the private and corporate sector balance sheet recessions between the now and a post vax humming economy will swallow whole any perceived missteps on any of these fronts. This is congruent with most everything else I'm paying attention to, so...
Seems to me that the appropriate way to play this is:
things that were bought below major resistance are safe until that resistance is broken.
Anything bought during all of the recent uptrends are at significant risk.
Rotation to value in equities at this point is likely a good idea.
Bonds may have reached the apex of a multi-decade turn similar to a jet airliner that ran out of Juan Valdez's wonderful coffee, but the consequences of that call are too large to fathom, so we hold off on that.
Last but not least hold BTC like William Wallace mounting the first successful defense of a cavalry charge in English history. Just kidding on this last point, but that is what I'm going to do.
I'll call it a defensive offensive stance.
Please feel free to comment... First post
My portfolio is becoming "irresponsibly long" on BTC and ETH. I am still bullish on both crypto currencies but would like to know about possibilities of buying some put options as insurance. Any recommendations would be greatly appreciated.