1/ The risk of a "brent like" flash crash in BTC is huge.
Forced liquidations will happen and money on the sideline is not sitting and waiting on the exchanges!
Given recent developments in FTX, no one in their right mind would sit with fiat on exchanges.
When brent went to -30 it was not because traders thought oil had negative value. It was because traders did not have infrastructure to take delivery of the barrels.
Similar to this. The crypto infrastructure has broken down.
In an event of huge volumes of forced liquidations, there won't be liquidity to available to step in.
There might be enough "I will buy BTC at sub 8k" money out there, but it's not ready to trade.
It takes time to get mandates, transfer fiat, and step in.
4/ This has all the hallmarks of a potential flash crash.
Not saying shorting this is a good r/r. But I suggest you think through knock-on effects if BTC drops to 500 in a flash.
@Edark94 shiptwit becoming largest holder in BTC. “The most entertaining outcome is the most likely”-Elon MuskThis post is based on this twitter thread.