BTCUSD is now trading above daily swing lower high, favorable zone to place a short trade following daily swing.
Stop-loss is placed above highest high.
It is rumored that Tether holds Evergrade CP and these CP could be booked as off-balance sheet liability. We all know that Evergrand rating has never been AA. However, asset backed commercial paper could increase its credit rating.
In addition, these commercial papers are off-balance sheet as it does not show asset pledged in commercial paper.
Company balance sheet maintain balance as it receives cash from CP, and increase liability. However, Evergrande has off-balance sheet liability as landbanks are pledged to pay commercial papers.
As mentioned by Patrick Boyle, distress firms generally tend to sell liquid asset. Why Evergrande did not sell its landbank to pay off creditors? Have these landbank used in asset backed commercial paper to Tether?
As of now, I don't hear a thing, just silence.
Price is driven by supply and demand.
1) We know that demand is crazily fueled with leverage.
2) Is supply of BTC really truly limited?
Assuming there are 100 BTC in the world, there are 100 BTC in the world.
What happen if we can own 0.1BTC or 0.001BTC or 0.000000001BTC? The supply of BTC is bigger than infinity.
In summary, I am shorting BTC as I believe Tether owns Evergrande CP.
Am I a fool in the market? Leave your comments below
More on CP Paper.
Mayerbrown publication 2021 Market trend on commercial paper
Stop-loss is placed above highest high.
It is rumored that Tether holds Evergrade CP and these CP could be booked as off-balance sheet liability. We all know that Evergrand rating has never been AA. However, asset backed commercial paper could increase its credit rating.
In addition, these commercial papers are off-balance sheet as it does not show asset pledged in commercial paper.
Company balance sheet maintain balance as it receives cash from CP, and increase liability. However, Evergrande has off-balance sheet liability as landbanks are pledged to pay commercial papers.
As mentioned by Patrick Boyle, distress firms generally tend to sell liquid asset. Why Evergrande did not sell its landbank to pay off creditors? Have these landbank used in asset backed commercial paper to Tether?
As of now, I don't hear a thing, just silence.
Price is driven by supply and demand.
1) We know that demand is crazily fueled with leverage.
2) Is supply of BTC really truly limited?
Assuming there are 100 BTC in the world, there are 100 BTC in the world.
What happen if we can own 0.1BTC or 0.001BTC or 0.000000001BTC? The supply of BTC is bigger than infinity.
In summary, I am shorting BTC as I believe Tether owns Evergrande CP.
Am I a fool in the market? Leave your comments below
More on CP Paper.
Mayerbrown publication 2021 Market trend on commercial paper