BREAKDOWN: No, Bitcoin's Flash Crash Wasn't Caused by Turkey or Money Laundering or China or Any Other FUD
CoinDesk Podcast Network
CoinDesk
4.8 • 689 Ratings
🗓️ 19 April 2021
⏱️ 21 minutes
🧾️ Download transcript
Summary
Instead, the weekend’s rapid price action had its roots in over-leveraged traders.
This episode is sponsored by Nexo.io.
In 20 minutes on Saturday night, bitcoin’s price fell by more than 12%. Crypto Twitter raced to explain it as the byproduct of hashrate crashes after Chinese miners went offline, a suspicious report about the U.S. Treasury Department going after crypto money launders, and/or an upcoming ban in Turkey on using cryptos as currency.
NLW argues that all of those explanations are hogwash and that the crash had much more to do with leverage in the system than any fancy narrative.
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Transcript
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| 0:43.9 | Wondery UK. That's audible.com slash Wondery UK. |
| 0:49.6 | Let's peel us all back again and ask what really happened, and this is where we need to make a really, |
| 0:55.0 | really important shift, from thinking in terms of narrative causality to thinking in terms of |
| 1:00.1 | market structure and technical causality. In short, we need to discuss leverage. Welcome back |
| 1:08.3 | to The Breakdown with me, NLW. |
| 1:16.5 | It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world. |
| 1:23.0 | The breakdown is sponsored by nexus.io and produced and distributed by CoinDes. |
| 1:30.9 | What's going on, guys? It is Monday, April 19th, and today we are talking about this weekend's flash crash and why it wasn't caused by a Turkish ban on Bitcoin or the Treasury Department |
| 1:37.0 | going after money launderers or Chinese hash rate crashing or any other fud. And I want to start |
| 1:43.6 | with a caveat that comes from a tweet from I Am Nomad. |
| 1:47.5 | He wrote this weekend, be careful of searching for narratives around Price. They are just people |
| 1:52.6 | trying to stitch together a story that makes sense in their head. Much like the people creating |
| 1:57.3 | them, they are usually wrong. So unless you were like camping in the Teton's with |
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