Here’s What Will Reignite the Crypto Bull Market, According to Mark Cuban

Here’s What Will Reignite the Crypto Bull Market, According to Mark Cuban

Billionaire and Shark Tank star Mark Cuban is unveiling the fundamental catalyst that he believes will reignite the crypto bull market.

In a response to a Twitter thread that aims to dissect the recent market collapse, Cuban says that traders who leveraged their crypto assets to provide liquidity and generate yields in decentralized finance (DeFi) platforms contributed to the sell-off.

“I think this is the ‘Great Unwind.’ Traders borrow to buy ETH (Ethereum). Used ETH to borrow alt/stable coin. Used that to liquidity provide a high APY (annual percentage yield pair). Took the SLPs (supplemental liquidity providers) and staked them to max out yield. The minute ETH drops to their tragic number, they had to unwind, unstake, remove liquidity, [and] repay.“

Cuban, a vocal crypto supporter, adds that the price plummeting in DeFi triggered margin calls in the more centralized parts of the crypto space, which aggravated the sell-off.

According to Cuban, whales who were supposed to hold key support levels succumbed to the cascading prices.

“It gets worse when a Double Tragic Number strikes those who have been in long enough to not think they would ever get hit. When they get hit that means most of the dry powder that was being used to hold support levels is unwound too.”

Cuban posits that it will take an influx of fresh capital from market participants to revitalize the bull market.

At the height of the crypto correction, on-chain analyst Will Clemente noted that a new breed of whales was accumulating Bitcoin.

“The cohort that did the most buying throughout the dip was entities holding 10,000 -100,000 BTC. This cohort added 122,588 BTC to their holdings in aggregate on Wednesday. One interesting note: a lot of buying was coming from the west (US). I say this because at one point during the bounce, Coinbase was trading at a $3,000 premium to other exchanges. This means western buyers on Coinbase were spamming the green button.”

Source: The Daily Hodl

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