When a company goes into Chapter 11, they have to start selling off their assets to pay back loans and debts. Is it possible that the mining company Rhodium had some Bitcoin on their balance sheet that they needed to dump to get cash for their debts? This recent dip has definitely been surprising, haha.
So, Rhodium Enterprises has filed for voluntary bankruptcy under Chapter 11 in Texas, listing liabilities of about $100 million.
This bankruptcy comes after reports of financial troubles within the company. Rhodium, which owns Rhodium Encore and Rhodium 2.0, missed payments on $54 million in loans back in July. In 2021, they raised $78 million in loans for their subsidiaries.
There were two proposals for debt restructuring before they hit the deadline, but disagreements among the stakeholders led to the default. With Chapter 11, the company can reorganize its debts while still operating, which means they can work out a new repayment plan.
Yeah sure its possible they could of dumped, just like FTX had to sell to even pay everyone back who have money stuck on their exchange. However it says failed to repay $54M in debts, which means they had way less than $54M worth of crypto or else they would of sold their assets to pay their liabilities.
So maybe the trustee liquidated about $10M or $20M worth, which is nothing really in the huge liquid market we have today. I wouldnt put much of a dent in todays price action. I am pretty sure todays dump had nothing to do with this miner company going under.
It could have influence the price market today, but I'm not totally sold about it, perhaps there could be manipulation again from behind. And those people might have used this news to create fear again.
I mean did they totally dump all their bitcoins in a single day? I highly doubt that.
And it's a huge dump in 24 hours, 5% is very unusual for a company that we haven't heard before to suddenly cause a dump in flash. Did it just create fear to the investors to suddenly push the button to sell?
There is no other choice but to sell off their assets to cover the company's debt costs and they may be subject to sanctions if they do not pay off loans and other types of debt. But the dumpling that occurs can be influenced by it as a whole, then the answer is probably not entirely because the journey of bitcoin is not determined by a single event. In its broader influence it may be true because the company has its own appeal but the quality to influence the market sometimes does not happen just because of a single event.
Let's say that what happened really had a cause and effect from the Bitcoin mining company Rhodium Enterprises but further we will see this issue as a process that occurs in bitcoin so that the peace of mind to hold or sell depends very much on the knowledge of each individual in it. So the pleasure for people involved in bitcoin because if one event can affect then the positive use is a victory.
If the market has absorbed the liquidity that the German government has provided, it means that once interest rates are lowered, there will be enough liquidity to buy more Bitcoin, and if the supply is limited, the price will definitely rise.
It is true that the price has decreased by 5%, but we are still at the same levels as last week, and $100 million is considered small with daily trading worth $41 billion.
Yes this could be the reason for the dump. But Bitcoin dumped only 5.86% in the last 24 hours. Even anything other thing can be the cause but which is a small decrease in price.
I think it is time to accumulate a little more.
@bbc.reporter, do you really think that $100 million can be the reason for the price to drop 5%+? If you're looking for a reason, you'll always find it, the only question is whether that reason makes sense at all, and it seems to me that this time it's really meaningless.
If I were to state some reasons, then I would prefer to speculate that the price of BTC rose a few days ago because Powell announced the reduction of interest rates in September, and someone made a small pump on that news and now profited from it. Ordinary manipulation, which is worth much more than $100 million - in addition, yesterday spot ETFs recorded an outflow of 2139 BTC.
Three things in my mind.
1. Rhodium really impacted the market with their dumping but still that's not enough I guess to move it that much.
2. FED, this is stronger reason as it's always been them that causes the market to move upwards/downwards.
3. August - the ghost month for which is still known that many investors just acts and going with the flow of the market.
Yeah, last time we saw $49k and with this sudden dump we say $58k. I think that the low keeps on increasing and I'd take that as something positive even these dumps keep on occurring.
I think the recent dump for Bitcoin is pretty normal it is still under the expanding symmetrical flag news might affect them a bit but it can't break the current pattern since February.
For me, don't lose the opportunity to buy or do a DCA this might be the final dump and soon we will see the price keep increasing.
There's no reason to be panic it is not the same as before when people afraid that Bitcoin to die again.
Whenever we do have these kind of news or fundamentals around seeing about those kind of conditions like bankruptcy or even with other correlated things or reasons then i would really be always having those kind of thoughts that it might really be just that an another potential manipulation just to make the price drives down. We do know that this isnt something new when it comes into this aspect on which there are really those
obvious instances when it comes to this part. If you've been here on this market for a while now then you would really be able to mold up with those kind of assumptions that it is really just that something that
talks about manipulative actions on which it could affect out the market condition but well we do know that when it comes to news and fundamentals then it wont be anytime that causes up some dump.
Just like on a typical day then it would be that normal on having those % drops or decline of price. We are now hitting again below $60k but its not really that too far off, i've seen already that price could go
down even more but actually these things or news isnt really that bad either. It is really just that there are people who are really just that easily panicking on the time that the market would really be
making up these kind of declines. Instead on making themselves making some accumulation or buybacks, they would really be rather be trying out to cut their loses. lol
It is possible because this might be one for the reasons why there is a dip in Bitcoin price but it can not be only the reason why the month has seen lots of dip then a rise. I think there are many factors that is affecting the price of Bitcoin which is making the market to not look bullish. One thing I think is causing this is that, everybody is waiting for the outcome of the US election and what it is going to be. I have seen lots of predictions that the start of the bull market is going to be during the US election which I think might be correct because history supports this theory too. Lots of reason are there and for people saying, the market is being manipulated, I also agree too because that is what the market whales are known for, they make you fear that the market is going into a bear market when it is not.
There's never a single reason for a dump like this. We're talking about thousands of bitcoins being dropped on the market in just a few hours. Rhodium was around $50m in debt, which means they must have held less than that in bitcoin or they wouldn't have filed for bankruptcy but simply covered the debt by selling coins. On bitstamp alone some entities dropped 1k BTC in 2 hours, worth 60m.
On other exchanges the volume was even higher.
This is leverage guys. Gamblers caused this. People who go 10x leverage and barely can cover a 2% move in the opposite direction before they get liquidated.
According to analytics, 75% of all bitcoin supply has not moved in the last 6 months. All of what you are watching here is leverage piling up and being liquidated. First it was longs in August 3 and 4, then shorts on August 23 and now longs again. Give it a few days so degenerates can set their short positions and we'll go up again to 63k
Who knows? It's not that big enough of a margin to assume that a single company dump was enough to be the cause since we've seen the same margin of pump and dump these past few months. The markets only been moving around that range after all. I mean the drop from 5 days ago looks the same as half a year ago.
Plus the debt was $50m ish only. As others have said, they held less than that to pay for their debts and I don't think that much amount is enough to sway the market THAT much.
Dump on our faces! Literally sounds like it heavily had a massive impact on the price of bitcoin. Before the dump bitcoin traded at #65k then dumped to #57k just a gap difference of $8k that's about 4% thereabout in 24hrs. As at now the price is consolidating around #59k mark which is something in the positive.
The German government and Mt Gox simultaneously dump in weeks past could have been what should have been referred to a dump on our faces but despite the fears it triggered, causing panic sales, bitcoin recovered from that shit. The Rhodium's dump would make no difference either and in few days at most a week it's gonna be a thing of the past as the price of bitcoin finds it's way up again.
It is not an insignificant figure but totally agree that the market didnt crash because of this. There was even reports earlier Today about Blackrock selling some bitcoins I think if this report was true then they definitely would be part of those actually dumping this market. The thing about institutions like Blackrock and mining firms like Rhodium is that once news broke out about them trying to sell then the FUD starts to spread and thats one thing That to me as caused the dump we are seeing today. Just one of them technically cannot dump the market like that not to talk of how little the volume of their stocks. So this dump might not have been caused by this institutions
One particular company isnt enough reason and 50m is someones lunch money, its nothing vs the overall worth in BTC. We are just weak enough in this area to repeat the last low seen fairly recently, its always a given we can roll backwards to the last sell off action. Some might even say this process is a positive not a negative, if we can rise from here then we are helping to establish a support level from which future gains will stem.
Iam still expecting a bigger low its possible as a sequence, something nearer to the 50k level. We cannot run from any fight that needs to be finished and Im not convinced its done with just yet. This present area of 58k to 68k is just ping pong back and forth, I wouldnt even call it negative at this point its really neutral when viewed on weekly or monthly bars. Nothing happened till we alter this range, I refuse to expect any different till its proven.
if this news is true and BTC has stopped from correcting, I assume we will be heading for $60k again, but beware that we might go to $54k, however I already set up limit order just in case.
this 4% difference liquidated hundred millions though
I guess that's the disadvantage of trading on leverage, basically become the food for the whales. but regardless I think it's significant since there are many speculations that the previous recovery bitcoin could go to $68k at least but unfortunately abruptly disrupted by some random dumping to $57k.
Manipulation happens all the time in this market and releasing news is just their way of hiding the manipulation so no one suspects. Because they know that every time bitcoin price corrects, investors will always run around looking for reasons and believe in it.
I don't know what news OP is referring to and I don't see much discussion about it. But I found another news that Binance has transferred bitcoin and they want to sell it right on their exchange. I can't verify this news but I believe it's all just to legitimize bitcoin price manipulation.
https://x.com/whale_alert/status/1828364789757669696
Whales wait for their prey there, so when someone decides to trade on leverage, make sure that you're prepared and not there to be eaten by them alive.
While the recent dump wasn't that far a day or two ago, the market recovered quickly and we're about to cross back to $61k.
The possibility is still there. Until we cross $70k, the support remains at $49k and that's so why $50k levels are still close and possible. Just don't be too confident if you have bought at the $60k levels unless you're fully committed in long term.
Totally really that hard to believe everything online on which possible events or situations could really be that something that neither a real one or something manipulative. If you are really that a type of investor or trader who do really loves on applying fundamentals then it would really be making out this kind of in connection into these events into the current price or value of Bitcoin. We do know that bitcoins price is always been that volatile and there would really be those kind of loses on which its caused by those kind of sudden change, and since humans arent someone who do easily believe and stick into those ideas into their mind then it wont really be that much of an issue for whatever conditions that you are really that making on. Whether these news would be that real or not about being the reason about crypto investment or trading up.
If you've been doing trades for this market for a while now then these kind of movements isnt really that shocking anymore into you and its really just that a normal approach thing that you would really be that trading basing up into your own experience. Sudden dumps and crashes arent something that too common into this market but it could really happen anytime on which it would really be causing up those kind of
discussions that would becoming that a debate or something in between people. Dumping is an opportunity for you to make those good entries and instead on freaking out then better take those chances
to buy cheap instead.