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This crypto fund manager claims that Bitcoin’s crash was a “capitulation”

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It is widely believed that even experts can only identify capitulation after it has already happened. The point is, in regulated markets, unscrupulous billionaires / bond villains have the decency to manipulate the market behind closed doors. Traditional markets don’t have as strong a sign as Elon’s infamous tweet.

The CEO of investment advisory firm Vailshire Capital Management, Dr. Jeff Ross, proposes the theory that Elon’s attack on the Bitcoin network generated a “short-term capitulation. “That means everyone who was ready to sell their Bitcoin at the slight sign of trouble has already done so. Weak hands and short-term traders are out of the game.

Is this the new Bitcoin bottom?

Of course, so far, capitulation is just a theory. We really can’t be sure. But, if this is what is happening, it also means that we are seeing the new bottom of the Bitcoin market. And other indicators point in that direction. Capriole Investment founder Charles Edwards identified a drop below the 100 simple moving average yesterday, which generally means one thing.

This, of course, has happened before. After the Bitcoin halving in 2020, capitulation hit the market and NewsBTC was there to reassure everyone:

While the “capitulation” sounds scary, especially since it has been associated with the collapse of Bitcoin in late 2018, it is not exactly a bad thing.

As noted finance and Bitcoin Bull podcaster Preston Pysh explained in response to D’Souza’s analysis:

“During the 2016 halving, the price fell sideways for 9 days and then dropped 28%, and it took 100 days to get back to the halving price. Mentally prepare yourself for efficient cleaning and difficulty setting as the protocol prepares all passengers for launch. “

Related reading | Was Bitcoin Crash Orchestrated? These 4 theories scream, be careful

So, in summary, if the capitulation happened and we are seeing a new bottom, we could see the rebound of the world’s favorite digital assets and rise to incredible new heights.

BTCUSD Chart for 05/15/2021 - TradingView

BTC price chart on Bitstamp | Source: BTC / USD on TradingView.com

How will Bitcoin rebound after such a catastrophic capitulation?

This is the easiest question to answer. And with it, we can also answer another burning question: Did Tesla not do its due diligence before investing more than $ 1 billion in BTC? Has Elon just found out about the allegedly dangerous levels of power consumption that the Bitcoin network needs to protect itself? Probably not.

For a possible explanation, we give the microphone to Mark Yusko, CEO of Morgan Creek Capital Management:

Related reading | Lesson Learned: Teacher Loses Life Savings to Elon Musk’s Bitcoin Scam

Bitcoin will rally on institutional money snatching every coin out of the hands of scared retail investors. In fact, the process is likely already happening.

Other theories about Elon Musk’s possible motives include Tesla trying to get tax breaks from the US government’s green policies and that this is the launch of a mining rig powered by renewable energy. For more information on both, go to our sister site Bitcoinist.

Featured Image from ShutterStock – TradingView Charts

Results for Saturday, May 15, 2021

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