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The Bitcoin War for 20,000 to Hold is On

The start of the crypto crash has been well documented by numerous websites and the Bubblevisions but the real war has started this weekend. There have even been some insane comments like those from Doubline’s Jeff Gundlach actually stated on CNBC’s Overtime program on Wednesday that Bitcoin was steering the direction of the stock market! It’s an insane comment only because the size of the cryptocurrency market in total is barely $1 trillion so that indicates that the drama being introduced by all sides in this battle is a bit much.

Tonight the battle for 20,000 is failing again after a dramatic drop this morning to 17,734 and an afternoon rally back above 20K:

The reason I have major concerns for the entire cryptocurrency space is stories which keep popping up indicating either a fundamental weakness in the space or outright fraud. For example:

Solana’s Lending Platform Solend Votes to Temporarily Control the Whale Account

Excerpt from the WatcherGuru article:

This is due to the fact that the whale account and its extremely large margin position were posing a threat to an on-chain liquidation. The large holding of the whale was reportedly causing the Solend protocol and the users to be in a risk bubble. The governance vote will grant Solend Labs with ’emergency powers’ to liquidate the vulnerable assets of the whale.

So basically they are admitting there was no oversight to prevent such an emergency from happening? Solana’s chart does reflect this problem and possibly more:

Chart via

This old story from March 31, 2022 via the Wall Street Journal might now just become quite pertinent to the larger houses which dabbled in Crypto and are probably going to quit the market permanently:

SEC Tells Exchanges to Treat Customer Crypto Holdings as Liabilities

Then there is this piece of news tonight which does not inspire confidence:

If it is so stable, why does it need an exchange to buy any? I thought El Salvador only bought the falling knives?

Then the implications of the ongoing collapse which started with Celcius continues to send ripples throughout the affiliated market:

Not inspiring nor is this Tweet about another bailout:

The story does not seem to be getting any better and appears to be taking on Lehman like characteristics without the central bank nor oversight from the government (yet).

This poster who I have followed for years on Twitter nails it:

The story of Three Arrows Capital isn’t exactly inspiring either (from Vice News):

Founders of $10 Billion Crypto Hedge Fund Have ‘Ghosted’ After Bets Go Bad


Rumors of issues at 3AC started to percolate over the last week, as crypto prices plunged and evidence emerged that the firm was frantically unloading tokens. “They’re not responding to anyone,” an unnamed source at a crypto trading firm told The Financial Times. As the frustration grew louder, 3AC’s normally prolific co-founders went silent, until Su sent out a cryptic and ominous tweet on Tuesday. “We are in the process of communicating with relevant parties and fully committed to working this out,” he wrote, without any additional context. He has not tweeted since, nor has Davies.

This story is not going to end well for anyone especially if Hoodies and other US retail equity investors are dragged down by a total crypto collapse.

Stay tuned as this battle will not end well if there is a sustained break below the 18,000 level with US markets closed tomorrow for the holiday.

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