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/biz/ - Business & Finance

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25807669 No.25807669 [Reply] [Original]

1) DeFi loans will collapse first. The interest rates will rise suddenly, then loans will default as the underlying asset falls below the principal of the loan. Since DeFi loans are packaged multiple times within each other, this will rapidly escalate into a domino effect of defaults and forced sells. The one who staked the BTC will lose it, of course.

2) Institutional investors will panic at the plummeting price and start derisking. Since they hold such large positions, the one who bought at the highest price will be incentivised to cash out as the price falls below the buy-in level, and dumping thousands of BTC at once will trigger sells from the other large holders.

3) With prices in freefall, anyone with spare capital will buy everything up hoping to cash out at $42k again. As this available capital is absorbed, the price will fall again until liquidity evaporates, and then there won't be a floor until $3000-5000

4) The price will oscillate there for the next few years until someone figures out another international scam to print money from thin air again. Hodlers parrot "best performing asset of this decade!!" until even they don't believe it anymore and quietly sell at a loss.

>> No.25807744

/biz/ has some of the lowest IQ takes I've ever seen anywhere on the internet, based retard

>> No.25807750

Based. Butters BTFO. We told you guys crypto was a scam.

>> No.25807766

>>25807669
Ah yes, the institutional investors with 30+ years of experience will surely panic sell.

>> No.25807819

>>25807766
Hedge fund investors are even more retarded than biztards desu. It's true. Most of them don't even make money because it's not their money in the first place.

>> No.25807824

>>25807669
people with defi loans would profit if the stablecoins became worthless
nice try kiddo

>> No.25807876

>>25807824
>DeFi loans pays out stablecoins
>The underlying asset is sold for USD and lost
>the one taking the loan now has a free loan of useless stablecoins
>the one staking the coin now lost his coin
you're right, much profit, very wow

>> No.25807893

>>25807819

They might be retarded, but institutional investors don't have short term time frames. They're prepared to hold for 3-10 year periods and weather a crash, unlike weak hand retailers.

OP is a fucking idiot.

>> No.25807915

>>25807819
>Hedge fund investors are even more retarded than biztards desu. It's true.
>take investor's money
>buy bitcoin with it
>more people come in wanting to invest
>take their money
>no cheapies left to buy
>short the market with new money
>buy cheap bitcoin
>more people come in wanting to invest
>repeat forever

>> No.25808000

>>25807893
Imagine believing this. Institutional investors are even more paper hands than retail, anon, because the money is not theirs, and if crypto blows up they have to (a) service all loans in USD and (b) explain to their investors where the money went or risk a lawsuit.

>> No.25808145

>>25808000

>service all loans in USD

In virtually no circumstances are they using loans to begin with you fucking moron. Its not illegal to have negative returns, especially not on a high volatility asset if a company clarifies exactly what someone is investing in and the risk.

Jesus Christ, I have a finance degree and work in the fucking industry, kill yourself you subhuman degenerate retard. Learn how the fuck institutional investors and funds actually function. Worthless nigger.

>> No.25808389

>>25807669
>Institutional investors will panic at the plummeting price
You lost me here.