Thread by @FossGregfoss

Why #btc could rip…a thread from a shitty trader who has 35 yrs of mistakes.

In any hedging business the “easiest” way to “pretend” you have shorts that offset longs is by shorting an underlying INDEX to offset a long position in a single name.

The crypto hedge space /2

… is no different. Think of all those players who are likely short #btc or own some delta hedge short position.

These positions include: shitcoins vs #btc, equity in miners vs #btc, equity in crypto exchanges vs #btc, equities in Nasdaq vs #btc, mining lenders vs #btc…/3

This is called being “hedged and wedged”.

Add to this historic highs in open interest on #btc futures AS WELL as potential positions with counterparties who are in bankruptcy and there is a good possibility that the “INDEX” hedge snaps back hard, relative to the other silos…/4

….you see this happen with equity indices versus single names all the time.

Managing risk is an art not a science. Rookies always short the index because they don’t have the liquidity to sell their dumb single name position, nor do they have the skills to sell the loser…/5

…ALWAYS sell your losers. Too often rookies short the winner and keep their losing long position and become hedged and wedged.

#btc is the winner, and often the shorts get way too far over their skis cuz they are poor at risk management…Short covering rallies can…./6

….rip your face off.

Good luck to all. Bulls bears and pigs.

PS, shifty Pete and Doc Burry are horrible risk managers. Don’t be a clown act like that.

#btc #forthekids #learnmath