Friday Night Frights
Key Takeaways
- We are writing to update our clients on the events of this past weekend and highlight a few data points we will be keeping an eye on moving forward into the next couple of weeks.
- On Friday, December 3rd, over $2 billion in long positions across the global crypto market were liquidated, nearly $850 million of which were from BTC futures.
- Almost $500 billion in total market value was wiped from the global crypto market cap, as Bitcoin fell over 20% from $57k to a low of approximately $45k (Source: CoinMarketCap). The rest of the crypto universe essentially followed suit.
- We ultimately saw strong buying support at the 200-day moving average as the Bitcoin price has since steadied and at the time of writing fluctuates between $48k and $49k.
- Altcoins have performed more robustly in recent weeks, leading us to consider that the institutionalization of Bitcoin may be leading to outsized influence from macro uncertainty as compared to the rest of the crypto market.
- While there is reason to believe that Bitcoin consolidates around its current level before heading higher, we have yet to find substantial evidence that Bitcoin is entering what we would consider a prolonged bear market.
Leverage Wipeout
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But unlike past weekends, Bitcoin barely responded to these headlines (see below). In fact, Bitcoin is indeed flat/rising over the long weekend: - at 4pm ET Friday (5/28), Bitcoin was ~$34,900 - at 3:50pm ET Sunday (5/30) when FT story "broke" Bitcoin was ~$36,000 - as of this writing at 4:30pm ET (5/31), Bitcoin is $36,900, +$900 vs FT headline In other words, despite another set of "negative headlines" Bitcoin...
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