This week we experienced what appears to be the Largest Alt Coin liquidation event in two years. Hundreds of millions in interest were wiped out in a matter of minutes. This number is staggering and was caused from a ~10% move on Bitcoin, which in the grand scheme of crypto volatility is relatively small. What this means is traders got complacent and over-levered their positions, leaving them vulnerable to liquidation on moves like this.
Rumors circulated that the reason for this drop was somehow due to a report from an analyst at MatrixPort who believed there was a reasonable doubt of the BTC ETF being denied. Its crazy to think a single analyst report could be the source of hundreds of millions in liquidations. It is far more likely that this was a liquidity grab meant to clear some of the leverage, which as seen in the above chart, had become very thick very close to the current price of BTC. We have now almost entirely retraced the liquidation cascade, further lending to the idea this was a liquidity grab.
As we draw closer to the expected BTC spot ETF approvals with deadlines this month, there will likely be a lot of violent moves on majors as well as altcoins. Beluga recommends everyone to be careful with their leverage, and manage risk properly.
For more: https://beluga.beehiiv.com/p/largest-alt-coin-liquidation-event-2-years
MatrixPort pulled a Cointelegraph, and, once again, the SEC will do nothing about it.
Correlation does not imply causation.
It’s funny how people don’t know this basic concept.
Pretty sure it’s taught in middle school
Bro its just the mini-bull run before the big boy bull run.
I took massive altcoin profits before the new year, it was unsustainable growth to begin with.
look at altcoin charts from June 2020 to Sept 2020.
few months of bleeding and sadness then the real craziness starts bossman.
Nor sure I’m I’m understand the liquidation talk here, but I have a question which may be related…is there ever a danger of making profit on crypto but then when you go to sell you realise that nobody will buy it?
I’m talking about some of the popular alts like xrp, algo, solana, ada, dot, Polygon etc…but also some of the rarer ones like INJ which has pumped a lot recently.