BTC: “I’m waiting for the short squeeze”
BTC Twitter analyst Ki Young Ju of crypto analysis firm CryptoQuant thinks BTC is likely to see a short squeeze. A short squeeze can occur on assets that have been shorted in bulk. However, if there is a sudden price increase, the open positions must be closed again. The shorters have to buy the asset to limit their losses.
Ki Young Ju currently sees the chances that there could be a short squeeze for BTC as well.
Waiting for a big short squeeze.— Ki Young Ju (@ki_young_ju) July 14, 2022
In late 2020, many people kept punting short positions on $BTC and got liquidated in the $10k-20k range before the parabolic bull-run started.
Back then, 10% of hourly buy market orders were from short liquidations. Now, it's around 1%. pic.twitter.com/tlVdw2RQHX
However, after his tweet caused a stir in the community, Ju has something to say about his statement put into perspective. He added in another tweet:
To be clear, I didn’t say that the parabolic bull run is about to start. I’m just saying it seems close to the bottom, and it’s time to wait until this short squeeze event happens. It could be for like a few months or years for the next parabolic bull run, we never know.
“Putting money in cryptocurrencies is gambling”
Aaron Davis, co-founder of the Metamask wallet, meanwhile, is far from convinced of everything the crypto market has accomplished. In an interview with Vice he warned users that the current crypto ecosystem resembles a casino that attracts Ponzi schemes. In this context, he warned investors against blindly putting their money into highly touted projects.
[…] Putting your money in cryptocurrencies is gambling. I’m not saying that the current situation is the future of finance and that your savings [in crypto] should push. Some people say exactly that, and I believe that’s extremely dangerous behavior.
Aaron Davis, Co-Founder of MetaMask Vice
In the interview, Davis mainly alluded to play-to-earn games from the ETH atmosphere, which are based on investing money in order to (ideally) get more money out of it. His Metamask co-founder Dan Finlay also saw the market in a bleak light. In his opinion, bankrupt companies such as Celsius or the broker Voyager have also ensured that the crypto ecosystem is currently not in the best light.
Especially with regard to the big ICO crash in 2018, you can draw good parallels to the current situation. As the BTC price skyrocketed, many unsubstantiated ICO projects emerged that have benefited from the BTC hype. A short time later, most of them had sunk into the ground. It is quite possible that many NFT and DeFi projects are now threatened with the same fate.
According to Finlay, Metamask’s job is to make it as safe to use as possible. Finlay and Davis also have no influence on what the users ultimately do with their money and what other ways other people find to get the money out of their pockets.
We can’t stop people from building ponzis on the blockchain. It’s impossible, by definition, to stretch the whole thing in a big arc and force it in one direction.
Dan Finlay, co-founder of MetaMask
But in the longer term there is hope. Here it is up to the entire crypto space to find creative solutions to the current problems.
We will know that we or someone else may have done something right when we have tackled climate change or achieved greater social justice. Those are my two biggest hopes for the ecosystem. Of course, I’m not saying that cryptocurrencies will solve global warming, but I’m saying that this is my biggest hope. That we’ll get creative, maybe in terms of collective organization and crowdfunding, and maybe we’ll find a carbon solution. And maybe we can beat governments at self-regulation, because I think they’re failing very, very badly at that. And for that we need creativity.
Dan Finlay, co-founder of MetaMask
BTC breaks the million? Might take time.
Some hopium for dessert. Arthur Hayes, the disgraced former CEO of crypto exchange BitMEX, is giving a resounding yes to BTC’s $1 million prediction. For the timeline, he’s quite consistent with Ki Young Ju: This may take time.
The doom loop has begun. 1 USD = 1 EUR. Prepare for […] 1 BTC = $1 million before. But have patience. These things take time.
Arthur Hayes, former CEO of BitMEX