Silvergate Capital - Crypto's White Knights About to Eat a MOASS
Updated
So, Silvergate Capital is this bank that services the crypto market and is arguably a pretty shady company.
It's a shady company because crypto itself is extremely filthy, is a cult, and doing business with shady cult people who are printing money out of thin air on the Internet brings with itself certain problems that no bank who is legit is willing to muddy its hands with.
Crypto is this thing that was originally supposed to provide a check and balance against a national central banking system that was corrupted by the globalists. But, like everything else, crypto was co-opted and ruined by the exact same system it was designed to destabilize.
History has come to pass, and just like really dirty water, you can't make it clean ever again. You can only burn it and watch it vanish.
If you want to see where the real scam with crypto and its "stablecoins" like BUSD and Tether is, then you need to start looking at how Chinese Communist Party-related entities have pumped and dumped other cryptos, ultimately for conversion into BTC and ETH, which are offloaded on both foreign (South Korea) and US domestic exchanges in exchange for USD.
The ultimate purpose of which is for CCP princelings to enrich themselves, and for the regime to have an under-the-table blood transfusion route for USD, which it has needed to stay alive all these years. They need USD because you need USD to buy oil and commodities. It's just that simple. Don't believe it? Look at what happened with Sri Lanka last year when it ran out of USD reserves and couldn't buy oil. People burned the presidential palace to the ground, and their president had to run away in a helicopter.
The Communist Party has never been powerful. The Communist Party is dangerous, but it's not powerful. Nothing as riddled by corruption as it is counts as "powerful." It's just that all its members are bound by "mutually assured destruction."
Since none of the white knights are willing to touch the topic of the connection to history's most wicked and brutal regime and just want to sound off about Binance and Tether for likes on Twitter, this should already tell you a lot about the integrity of the people who claim to be fighting for justice.
But if there's one thing I despise the most, it's the soy leftists who feign to be white knight justice warriors who are opposed to the crypto ponzi and the money laundering scheme, because they just, like, really have morals, yeah?
But in reality they use the opportunity to bring in a glut of followers and readers who lost a lot of money in crypto and are resentful and disenfranchised to both grift from and spread socialist indoctrination to.
That group of scum happens to be a group boys and girls who has been, only because they were provided intelligence from someone who understands, holding puts on SI and SBNY for a very long period of time.
People who are following the instructions of others tend to fail at thinking for themselves, and they tend to get greedy and forget that they don't actually have any abilities.
If you don't believe it, just look at all the fools who called for $85 and $55 Tesla when it was already at $100 after falling for four or five straight months. Their bottom puts, and their puts all the way back up, all expired worthless as Tesla more than doubled in value and never even dipped again.
Further to my point, Silvergate is the #1 most shorted stock in the market, and by a huge margin. 73.5% of the float is shorted as of Jan. 31, the most recent reporting. Putting that into perspective, everyone's favourite memecoin to lose money on, Bed Bath and Beyond, only had 48% of its float shorted.
Now, it's a fallacy to think that because something is super shorted that you're going to get a "MOASS," and even stupider to think that retail can combine their bottle depot pocket change to take out Wall Street's positions.
That was never what happened with Wall Street Bets and Gamestop. What really happened is a narrative was spun on the Marxist Reddit PR train to bring in idiots to provide exit liquidity at the top, and only an idiot would believe the narrative that retail combined forces to injure the pearly gates of the world's financial heart.
Moreover, despite SI being such a piece of crap and the crypto market being on the verge of being smashed by the Federal Reserve and the US Treasury as they take down stablecoins to install a Central Bank Digital Currency and their own version of the CCP's social credit system, one based on "saving the world from climate change," according to 12/31 SEC filings, the biggest holders of SI, fundamental names like Blackrock and Vanguard, State Street, Block.One, Morgan Stanley, etc, all increased their positions.
That should really ring some bells for you boys who are following the soy leftists on Twitter to ape on how crypto, SBNY, SI, Tether, and Binance are all going to $0, and going to $0 tomorrow.
You're a few months early. Guillotines fall from high up. Use your brain.
Moreover, you can divine some insight from the options chain. Open interest on puts with strikes at $10, $15, and $17.50 are in the high four and mid five digits expiring March 17, and in the low four digits expiring in April from $12.50.
But starting in May, open interest on calls with strikes from $15 to $50 are low to high four figures, while in May, there's 35,000 contracts of open puts from $10.
I'm of the opinion that Bitcoin is about to retrace significantly to take out early bulls and trap overzealous bears who don't understand market structure and can't think like the market maker.
Bitcoin - Can You Fade the Bear Trap for $34,000?
Since SI is a crypto bank it will be algorithmically moved in connection with the underlying asset. There is confluence in the price action on SI in that the lows have not been retested.
Yet, the dump on crypto is not going to be to set new lows. It's more likely to print new highs.
But what the monthly candles tell you is that an extremely critical pivot was already taken out in January:
And what weekly candles show you is that when price bounced back into the
20S, PA both printed lower highs and was held back by the mitigation candle left in November
Moreover, from the Friday close to the low is a 25% range. This % is a very significant amount from a PNL perspective.
Thus, I believe that what is coming is:
1. Too early to go long and PA doesn't support it.
2. Crypto is likely to correct before going up again, if it goes up again.
3. Bottoms are untested, and so a double bottom is possible, but a 78%+ retrace is slightly more likely.
4. Bears are looking for $0.00 because they're very smart, very rational, and are avatars of justice.
5. MMs are going to show them the meaning of "expired worthless" because they're the ones who sold them the puts, lol.
You have to understand that a call for a long trade is not an endorsement of a company, the stock market's health at large, or an underlying instrument.
It's simply that things don't go to the bottom in a straight line, and the more greedy people become, the more fearful you should be.
This is a Warren Buffet quote, and if you can keep a cool head you can take advantage of what's about to happen.
Not only can you take advantage of the long opportunity, but you can use the wisdom to find the best short for when these D-list banks really do go to $0.
It's a shady company because crypto itself is extremely filthy, is a cult, and doing business with shady cult people who are printing money out of thin air on the Internet brings with itself certain problems that no bank who is legit is willing to muddy its hands with.
Crypto is this thing that was originally supposed to provide a check and balance against a national central banking system that was corrupted by the globalists. But, like everything else, crypto was co-opted and ruined by the exact same system it was designed to destabilize.
History has come to pass, and just like really dirty water, you can't make it clean ever again. You can only burn it and watch it vanish.
If you want to see where the real scam with crypto and its "stablecoins" like BUSD and Tether is, then you need to start looking at how Chinese Communist Party-related entities have pumped and dumped other cryptos, ultimately for conversion into BTC and ETH, which are offloaded on both foreign (South Korea) and US domestic exchanges in exchange for USD.
The ultimate purpose of which is for CCP princelings to enrich themselves, and for the regime to have an under-the-table blood transfusion route for USD, which it has needed to stay alive all these years. They need USD because you need USD to buy oil and commodities. It's just that simple. Don't believe it? Look at what happened with Sri Lanka last year when it ran out of USD reserves and couldn't buy oil. People burned the presidential palace to the ground, and their president had to run away in a helicopter.
The Communist Party has never been powerful. The Communist Party is dangerous, but it's not powerful. Nothing as riddled by corruption as it is counts as "powerful." It's just that all its members are bound by "mutually assured destruction."
Since none of the white knights are willing to touch the topic of the connection to history's most wicked and brutal regime and just want to sound off about Binance and Tether for likes on Twitter, this should already tell you a lot about the integrity of the people who claim to be fighting for justice.
But if there's one thing I despise the most, it's the soy leftists who feign to be white knight justice warriors who are opposed to the crypto ponzi and the money laundering scheme, because they just, like, really have morals, yeah?
But in reality they use the opportunity to bring in a glut of followers and readers who lost a lot of money in crypto and are resentful and disenfranchised to both grift from and spread socialist indoctrination to.
That group of scum happens to be a group boys and girls who has been, only because they were provided intelligence from someone who understands, holding puts on SI and SBNY for a very long period of time.
People who are following the instructions of others tend to fail at thinking for themselves, and they tend to get greedy and forget that they don't actually have any abilities.
If you don't believe it, just look at all the fools who called for $85 and $55 Tesla when it was already at $100 after falling for four or five straight months. Their bottom puts, and their puts all the way back up, all expired worthless as Tesla more than doubled in value and never even dipped again.
Further to my point, Silvergate is the #1 most shorted stock in the market, and by a huge margin. 73.5% of the float is shorted as of Jan. 31, the most recent reporting. Putting that into perspective, everyone's favourite memecoin to lose money on, Bed Bath and Beyond, only had 48% of its float shorted.
Now, it's a fallacy to think that because something is super shorted that you're going to get a "MOASS," and even stupider to think that retail can combine their bottle depot pocket change to take out Wall Street's positions.
That was never what happened with Wall Street Bets and Gamestop. What really happened is a narrative was spun on the Marxist Reddit PR train to bring in idiots to provide exit liquidity at the top, and only an idiot would believe the narrative that retail combined forces to injure the pearly gates of the world's financial heart.
Moreover, despite SI being such a piece of crap and the crypto market being on the verge of being smashed by the Federal Reserve and the US Treasury as they take down stablecoins to install a Central Bank Digital Currency and their own version of the CCP's social credit system, one based on "saving the world from climate change," according to 12/31 SEC filings, the biggest holders of SI, fundamental names like Blackrock and Vanguard, State Street, Block.One, Morgan Stanley, etc, all increased their positions.
That should really ring some bells for you boys who are following the soy leftists on Twitter to ape on how crypto, SBNY, SI, Tether, and Binance are all going to $0, and going to $0 tomorrow.
You're a few months early. Guillotines fall from high up. Use your brain.
Moreover, you can divine some insight from the options chain. Open interest on puts with strikes at $10, $15, and $17.50 are in the high four and mid five digits expiring March 17, and in the low four digits expiring in April from $12.50.
But starting in May, open interest on calls with strikes from $15 to $50 are low to high four figures, while in May, there's 35,000 contracts of open puts from $10.
I'm of the opinion that Bitcoin is about to retrace significantly to take out early bulls and trap overzealous bears who don't understand market structure and can't think like the market maker.
Bitcoin - Can You Fade the Bear Trap for $34,000?
Since SI is a crypto bank it will be algorithmically moved in connection with the underlying asset. There is confluence in the price action on SI in that the lows have not been retested.
Yet, the dump on crypto is not going to be to set new lows. It's more likely to print new highs.
But what the monthly candles tell you is that an extremely critical pivot was already taken out in January:
And what weekly candles show you is that when price bounced back into the
20S, PA both printed lower highs and was held back by the mitigation candle left in NovemberMoreover, from the Friday close to the low is a 25% range. This % is a very significant amount from a PNL perspective.
Thus, I believe that what is coming is:
1. Too early to go long and PA doesn't support it.
2. Crypto is likely to correct before going up again, if it goes up again.
3. Bottoms are untested, and so a double bottom is possible, but a 78%+ retrace is slightly more likely.
4. Bears are looking for $0.00 because they're very smart, very rational, and are avatars of justice.
5. MMs are going to show them the meaning of "expired worthless" because they're the ones who sold them the puts, lol.
You have to understand that a call for a long trade is not an endorsement of a company, the stock market's health at large, or an underlying instrument.
It's simply that things don't go to the bottom in a straight line, and the more greedy people become, the more fearful you should be.
This is a Warren Buffet quote, and if you can keep a cool head you can take advantage of what's about to happen.
Not only can you take advantage of the long opportunity, but you can use the wisdom to find the best short for when these D-list banks really do go to $0.
Note
I did not have time to look at this stock today and am only just now seeing that it dumped 60%.At least they made things easy by not grinding towards the bottom first.
The situation with Silvergate is very simple:
1. Crypto needs to dump.
2. Sell stops need to be taken on Silvergate
Whenever short interest exceeds 50% there's going to be a portion of shorts who are unable to close their positions (Sellers need liquidity from other sellers to close).
If you want to see the trap be sprung it has to be after the Orca has already eaten their meal.
This is now, but the problem is that crypto hasn't dumped, and a 60% one day gap down is really significant.
Everything is right for a MOASS. But you may also get BBBY'd and watch it slide towards $0.
There has to be some kind of catalyst to change the story. For Bed Bath Beyond it was their earnings event.
Note
When it comes to Silvergate, the bears really got quite a feast. Hopefully they know to cash in puts over $10 after a 57% daily drop.Right now there's no fundamental reason for SI to pump.
The important part of this call is when I said:
1. Too early to go long and PA doesn't support it.
2. Crypto is likely to correct before going up again, if it goes up again.
3. Bottoms are untested, and so a double bottom is possible, but a 78%+ retrace is slightly more likely.
4. Bears are looking for $0.00 because they're very smart, very rational, and are avatars of justice.
Doesn't matter to me. I didn't like the Alpha on puts with a target of $9 or $10 on Monday and thus stayed flat.
Short interest is going to drop on the next report since big money will have bought back their positions on those margin calls and cascading liquidations.
If it stays high, this is where the chance for a MOASS is, but it may be no better than $15 or $20 now.
Market structure and game theory are totally different when an equity blows out 60% in a day on fundamental news.
Be careful.
Note
This is a 47% bounce from open to the high posted a few hours ago.That being said, you have to ask yourself if there's a story the MMs can use to MOASS bottom shorters with. Right now it seems like maybe there isn't.
This thing is a gamble and a scalp and nothing to invest in.
But a lot of idiots want to short to $0 because they're very warriors of justice.
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