TODAY’S MARKET NUKE EXPLAINED 💣

1 Wetin

2 Happen?

If you wake up dis morning dey ask:

“I miss big news? Wetin cause dis wahala? You think say I fit still rock wallet chain for my mid-thirties?”

The answer na: no, we go break am down, and do your thing (but e no too sure).

Everything wey we dey see for today market crash na case of “market don dey weak, fear dey rise, e cause plenty liquidation for different tokens.”

E sound complex (and e dey) – but we go break am down step by step make e clear like crystal.

E make sense? Make we go!

Mass liquidation dey happen when plenty leverage gather for certain price points.

Na big grammar way wey mean say “plenty people don borrow money buy crypto, and dem go gas pay back if price drop reach certain level.”

And how dem go pay back? By selling the remaining crypto wey dem get.

Wey go make price drop even more… wey fit trigger more liquidation… and so e go dey go – until price balance and people begin buy back.

(Wey go make the market rise again.)

So na like dis e take happen in simple terms…

• 👉 Market don dey weak for the past few days (crypto & stocks)…
• 👉 Investors decide say make dem sell small…
• 👉 Dis selling pressure push price down…
• 👉 Liquidation levels come dey hit…
• 👉 People wey borrow money to trade come dey forced to sell dia crypto to pay back dia loan…

• 👉 Di more liquidation levels wey dem hit, the more selling pressure go increase…
• 👉 Di more price go dey dip, until all the local liquidation points don clear…

See one chart wey show how e take happen…

Di yellow lines be price points wey go cause $100M-$200M worth of selling make dem fit pay back loans (and na just Binance alone be dis). 👇

E no easy! But see as e be…

All dis na normal thing for crypto – in fact, options market don dey hint say we fit see price drop reach $75k or lower since December (we don talk am two months ago).

Di koko be say: unless we dey close to the market cycle top (which, as Kyle explain for last week video, we still far from), dis kind dip no be something wey suppose shake us.

At worst, na “just bear am, e go pass” kind situation.

At best, na “omo! Dis na big opportunity to buy more!”

Remember: the moment wey you change your mindset from “red charts = sell!” to “red charts = buy!” – investing go become easy like ABC!