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I gat you mate

if they are dumping these coins, isn’t that a good time to short them?

it is for spot trading, but for futures trading, I would wait till they get to a reasonable resistant level before I would short.

Does it mean we're gonna have a bloody market in the coming days?

I hear they can only sell $200m per week for BTC. So there will be blood but maybe not so much

That is still lot to flood the market. Another temporary steeper bear coming.

this does not sound good