How Many Days Before Bitcoin Hits Margin Call Price of $21,000?

kpmyers

4 years ago

Mish & Wolf Richter have consistently warned about the all asset bubble that global Central Banks have fueled. Here’s another asset class that is in trouble….the Chinese developer Sunic…https://www.asiafinancial.com/top-china-developer-sunac-seen-on-brink-of-bond-default 1st came Evergrande and now this developer is teetering….seems like there is no where to hide and a Great Unwind is on the horizon, if it’s not here already.

0

Tanner 0

4 years ago

Tether touched .92 last night. The crytpo markets premier stable coin is not so stable at the moment.

0

KidHorn

4 years ago

In the past when bubbles burst, things cascaded pretty fast. Margin calls on stock A forces selling of stock B. Which leads to margin calls on stock B. And so on.

0

PapaDave

4 years ago

I may take a stab at a trade in bitcoin. But only a trade. Just for fun. I don’t consider it a serious investment vehicle.

In the meantime, my serious investment money remains primarily (but not exclusively) in oil stocks, which continue to do well, while remaining surprisingly undervalued. The story continues with each quarterly report from dozens of oil firms; record cash flow; paying down or eliminating debt; buying back their undervalued shares; increasing dividends; special dividends; only modest capital expansion which can provide immediate production increases; and more commitments to return up to 100% of free cash flow to investors.

I also follow insider reports, and many insiders continue to buy significant numbers of shares on the open market, as they recognize how undervalued their shares are.

And every oil stock I own was recommended on this blog. Thanks Mish.

0

Captain Ahab

4 years ago

Reply to PapaDave

If ever there was a telling statement, this is it: “oil stocks, which continue to do well, while remaining surprisingly undervalued.”

0

PapaDave

4 years ago

Reply to Captain Ahab

Absolutely correct. In spite of their huge increase in price over the last year, their earnings and free cash flow have gone up even faster, which means they are trading at even lower EV/CF values now. Which means that they will continue to buy back their shares at bargain prices. Of course they are still paying down debt and increasing dividends as well with that enormous cash flow.

0

Jackula

4 years ago

The latest inflation print does not bode well for risk assets…Central banks are well behind the curve and really don’t have a choice but to raise rates and cut liquidity. Less than a month for bitcoin

0

Reptilicus

4 years ago

Anything below $17K is fantasy territory – it’s my fantasy that I’d have another opportunity to get some more at those levels. I am still kicking myself for the time at the beginning of the pandemic when it briefly fell below $3K. I I could have loaded up cheap.

0

Captain Ahab

4 years ago

Reply to Reptilicus

IMHO, anything above zero is fantasy. Beware anything with extreme volatility. It is asymmetric information, gambling, or a con

0

Six000mileyear

4 years ago

Microstrategy is crashing while markets are very much near bear territory, so who will even be willing to provide microstrategy with fresh capital?

0

Mish

4 years ago

Reply to Six000mileyear

MicroStrategy has a pile of Bitcoin that it can pledge. But that can then cascade into more margin calls.

0

Carl_R

4 years ago

Reply to Mish

How much of their Bitcoin is already pledged?

0

Sunriver

4 years ago

Crypto = ‘Pokemon trading cards/chips’ run amok.

Second time posting this analogy and I’m sticking with it.

0

MPO45

4 years ago

i had been considering that one of the reasons gold hasn’t gone higher than everyone expects it to was that money has found its way to different investments such as digital currencies, NFTs, stocks, etc. I had expected some gold movement upwards with the deterioration of digital currencies but gold is still relatively flat. That doesn’t bode well for gold imho, something seems to be really wrong with the gold asset class.

And if the only thing that drives it up is loss of confidence in central banks then what good is it? If central banks go down and gold goes up, what do you do with it during an apocalypse?

0

Esclaro

4 years ago

Reply to MPO45

Exactly right. In these circumstances, war in Europe, rampant inflation, sky high energy prices etc you would think gold should be at $5000 an ounce. It’s not. What does that tell you? The existing global financial powers do not want gold as an alternative to fiat currencies. Through the bullion banks sales of an infinite supply of paper gold, the price is manipulated. Eventually they may fail but not for lack of trying!

0

KidHorn

4 years ago

Reply to Esclaro

You can buy physical gold for about 5% over spot. So the paper suppression argument makes no sense.

0

dbannist

4 years ago

Reply to KidHorn

You can buy gold at spot on Ebay using a credit card.

There is no better place to buy it.

0

Tanner 0

4 years ago

Reply to dbannist

Could you point me in the right direction for this ebay gold. I’m seeing $1973 vs $1843 spot. I am in the mood to buy gold

0

Lisa_Hooker

4 years ago

Reply to dbannist

Sure. Free shipping, and you can get a second piece of gold for an additional fee.

0

Captain Ahab

4 years ago

Reply to MPO45

Panic has not yet set in. People (still) expect the Fed to back down and save the market.

Spock says, if the gold price is still being manipulated downward, then the smart money is still being secured.

0

RunnerDan

4 years ago

“Saylor says he will simply pledge more assets. Well that will do nothing but set an even lower pain level.”

I think the pain goes up even more (to a higher level) if he does that!

0

Captain Ahab

4 years ago

Reply to RunnerDan

Saylor is about to discover the pain of leverage.

0

MPO45

4 years ago

Don’t know about bitcoin but Apple stock dropped 5% and I bought back my May 13 calls dirt cheap for pennies on the dollar. When it rallies again, it will be rinse and repeat.

I do wonder what havoc diesel fuel shortages all along the east coast are going to cause….

0

A Dose of Reality 5

4 years ago

Why no T for Taxation built into the math of the blockchain? A direct sweep Cash to your declared home base government? Cause crypto profits buy lots of lookin’ the other way in DC town. K STREET KA$H.

0

A Dose of Reality 5

4 years ago

Metaphor for the Movie Moonfall. Luna nearly hitting the Terra while doing some big movie damage. Fighting A/I. And the moon (Luna) was even nearly empty.

0

Carl_R

4 years ago

Reply to A Dose of Reality 5

If the quotes I am looking at are correct, Luna went right on by Terra. Terra seems to still be $.60, while Luna is $.04, down from $120.

0

Carl_R

4 years ago

Reply to Carl_R

Luna is down another 50% in the last two hours, and now is $.02. UST is only down to $.59.

0

Carl_R

4 years ago

Reply to Carl_R

They continue to fall. UST down to under $.38, and Terra/Luna at $.0147.

0

thimk

4 years ago

seeking alpha delves deeper into the bitcoin balance sheet . this entity got 2.3 billion in long term debt . oh and this company is securitized under SEC regs .

https://seekingalpha.com/article/4510277-microstrategy-make-or-break-moment

0

A Dose of Reality 5

4 years ago

So when will taxation T be built into all Crypto Currencies to assure the govt gets its cut on every transaction of the fancy P and Qs of block chain mania. So many coins. Just like the dot Com web site mania in the early 2000s. So many ripe to fall. Like Bruce Scheiner says over on his security blog. ‘I can’t believe Bitcoin is still a thing’

0

Bam_Man

4 years ago

ARKK torpedoed again today.

Down another 10%.

Now down 70+% in the last six months.

That’s gonna leave a mark.

Where’s my fentanyl?

0

Nuddernoitall

4 years ago

Reply to Bam_Man

When the financial “star” continues to buy more U, TDOC, COIN, ADPT, DKNG, and the other dogs (no offense, real dogs), well then her portfolio will drop just as much as those …um, troubled companies and those companies have dropped massively. But, today or yesterday, she’s pointing blame for these declines on the Fed and the “Shorts.” Fascinating.

0

Casual_Observer2020

4 years ago

Reply to Bam_Man

Cathie Wood looks like she’s on fentanyl at times.

0

Bam_Man

4 years ago

Reply to Casual_Observer2020

She’s become more wealthy than you can imagine as a result of this obscene, psychotic mania and will hardly suffer one bit as it implodes.

Same as it ever was.

0

Nuddernoitall

4 years ago

The past five trading days have felt like capitulation to me. Obviously crypto is down sharply, but so are many other non energy securities. The bear correction continues. No one really knows where its “safe space” is. Today’s print guarantees a hefty Fed increase to be announced more than a full month from now. In the interim, markets will continue to decline, while the financial experts opine. You realize the chatter for a 75BP June hike will be heard. Meanwhile the war continues with no end in sight. Biden blames any real or imagined person for the ills of the US. The average citizen is not happy with their situation or the way they think the country is headed. Whether fortunate or not, people still have not processed the pain that awaits them. I would rather not go there myself.

0

Bam_Man

4 years ago

Reply to Nuddernoitall

Gold looked like a pretty safe place today – finally.

All this crypto carnage is going to be good for Gold, IMHO.

0

Nuddernoitall

4 years ago

Reply to Bam_Man

Since May of 2012, Gold is up 11%. Unlike BTC, you can touch it and hold it, It’s shiny and It’s nostalgic. But in the end, Gold doesn’t seem to me to be an investment that does much. Crypto on the other hand has the possibility of zooming into space and also the possibility of plummeting into the deepest depths of the sea. Investments into crypto are highly speculative. I can never imagine a world where Gold goes to zero. With crypto, “zero” is always a possibility.

0

Bam_Man

4 years ago

Reply to Nuddernoitall

Yes, but Central Banks all hold it – because of “tradition”.

“Tradition”, yeah right.

0

Nuddernoitall

4 years ago

Reply to Bam_Man

Central banks may hold it. No disagreement from me on that point. You and I probably differ on whether gold is a good personal investment over time. But a perplexing question to ask. With the dollar as a peg being threatened, with the dollar’s worth being diluted annually for 100 years, and with our debt levels at nosebleed highs, why hasn’t gold soared by now to $3,000, $4,000 or more? Currently Gold is under $1900. If it doubled in the next 12 to 24 months, I would buy gold tomorrow.

0

Captain Ahab

4 years ago

Reply to Nuddernoitall

The time to buy gold was not 2012.

‘Cryptology’ as a technology has been around for centuries. Phil Zimmerman popularized encryption back in the 80s with PGP. Bitcoin is merely another application with a few refinements, currently more popular than the rest. It will be replaced sooner or later, at which point it is worth zero.

0

Bam_Man

4 years ago

I predict a lot more fentanyl overdoses.

0

shamrock

4 years ago

It took like 5 months for buttcoin to go from 10,000 to 60,000. So yeah, 19 or 20k looks possible for sure, maybe even 10k.

0

Carl_R

4 years ago

Reply to shamrock

If it hits $20k, the margin call on MSTR may well push BTC to $10k. I can’t imagine it stopping at $19k. It might bounce before the margin call, though. We’ll have to see what happens.

0

Captain Ahab

4 years ago

Reply to shamrock

Going up typically takes 4 times longer than going down.

0

Tony Bennett

4 years ago

Saylor at the helm of MicroStrategy back in 2000 when they had “accounting issues” … and stock plunged.

Hopefully, he gets buried here and now. For good.

0

shamrock

4 years ago

Reply to Tony Bennett

Yep, I contend that was the pin that popped the bubble.

0

RunnerDan

4 years ago

Reply to Tony Bennett

The guy wears a black coat, no tie, and has an intense stare, like he’s looking into your soul and knows more about you than you! He certainly knows what’s going on…

0

Don’t Miss a Post. Subscribe now.

How Many Days Before Bitcoin Hits Margin Call Price of $21,000?

Share this:

Recommended Articles

Decorate Your Walls with Mish Fine Art Images

Stay Informed

Subscribe to MishTalk