“The Bitcoin price crashed down into the $3,000s because of the highly leveraged nature of the cryptocurrency market and the unwillingness of buyers to step in amid extreme volatility and uncertainty.
Thies noted that with the drop to $3,600, a new market cycle for Bitcoin could begin. Top traders have said in the last 24 hours that the overnight plunge of Bitcoin could kickstart a long accumulation phase.
If that happens, institutions could continue to accumulate BTC at lower prices if the appetite for risk-on assets improves over time, making the market less concentrated on whales or individuals that own a significant amount of BTC.
In the aftermath of the 50% drop in the price of Bitcoin, top industry executives that oversee the sector’s largest investment firms expressed their belief in the asset class and confidence in the long-term trend of the market.
Bitcoin is a battle tested asset which in time will prove its underlying strength as a genuine store of value.
I never once lost faith in what this incredible community has built. Stay strong. HODL on.”
See Also: Bitcoin Price Briefly Dips to 12-Month Low in Overnight Trading
See Also: Is It Over? (Video, TA)
See Also: Bitcoin Insurance Funds Take a Beating as Markets Rout
See Also: Despite Bitcoin Price Dips, Crypto Is a Safe Haven in the Middle East
“This centralized hierarchical structure no longer represents the world we are living in, the world that is becoming flat and decentralized, he said. Hoskinson believes that people are fed up living in a society where old-world institutions control their financial accounts, data and identity. According to him, they are ready to take back control.
According to Hoskinson, the new decentralized order ushered by blockchain technology is meant to solve some of the most pressing issues of modernity such as data ownership, privacy, and identity; an order in which there will purportedly be no need for CEOs or presidents.
He believes it’s important to keep the big picture in mind and says what this industry is building will fundamentally change the way society operates.
What we are looking at right now is the unraveling of the economic order of the 20th century.
“The decentralized services that feed price information into these headless lending platforms – known as “oracles” in the industry – simply couldn’t keep up. Pricing oracles – typically Chainlink or Maker’s V2 oracle – were the main victims Thursday.
Other DeFi applications handled the surge of transactions without heavy-handed measures. Uniswap saw its all-time trade volume double to over $53 million. Kyber Network also set an all time high with some $30 million in 24-hour trade volume.
What does this all mean? DeFi didn’t die, but it didn’t thrive either.
If we want crypto to become a global asset class, we need better DeFi [infrastructure].”
See Also: DeFi’s Craziest Week Ever? (Video)
“For the first time in Maker’s history, the project will see a Debt Auction — where a systemwide failure in the value of collateralized loans to support circulating DAI triggers a programmatic printing of MKR tokens which are auctioned in exchange for Dai to balance outstanding debts.
MakerDAO currently has $4 million worth of outstanding under-collateralized debt. The auction will result in MKR token holders being inflated.
The MakerDAO had a +500k$ surplus before the price drop, and now has a -4M$ surplus that needs to be filled. The protocol covers this issue, the solution being to trigger an MKR mint and auction.
Modifications intended to prevent 0 DAI bids from winning future liquidation auctions will be voted on by the community on March 13.” [This vote has passed and will be implemented March 14th.]
See Also: MakerDAO Vote
“Trading giant BitMEX is at the center of attention after unexpected downtime sparked rumors of foul play as Bitcoin (BTC) fell as low as $3,700.
Between 02:16 and 02:40 UTC 13 March 2020 we became aware of a hardware issue with our cloud service provider causing BitMEX requests to be delayed.
For Bankman-Fried, it was BitMEX’s unwillingness to address market conditions which hastened Bitcoin’s fall. After the platform went offline, Bitcoin recovered, he noted.”
2 Months Ago, Andreas Antonopoulos Explained Why Bitcoin Would Crash
“What most people don’t realize I think is that, in the beginning at least, crypto will crash hard.
And the reason it will crash hard is because a lot of the venture capital, corporate investments and private investment from individuals that is based on cheap money and disposable income and excess cash in portfolios etc., like in any other part of the economy, will dry up.
From that perspective, I think the first order effect that happens if we have a recession is crypto crashes because all the liquidity dries up which is a classic effect and symptom of a recession.
Thereafter, Bitcoin has the chance to emerge as a safe haven.”
“After sweeping the 5 state contests this Tuesday, Joe Biden owns a commanding lead for the nomination on prediction markets (87c/share to Bernie’s 6c/share).
Trump’s odds of winning the general election have been trending in the same downward direction as COVID-19 has driven the economy and markets. For the first time Joe Biden holds a 2c lead over Trump (48c/share vs 46/share).”