Were at one of those price levels where volatility yanks up a few notches, and bulls and bears have an arm wrestle.
The latest BTC crash has everyone in the market speculating ‘why’
Bitcoin was all sunshine when it crossed the $30k mark on 26 April again. However, the king of crypto came crashing down when it dropped by as much as 5% in just about an hour.
Yeah, was freaky, but BTC back to $29k... for now.
The sharp drop also woke up the twitterati.
and then,
However, looks more like a grinder to make mincemeat out of both longs and shorts.
Bitcoin Volatility Hits Longs and Shorts as $175M Liquidated, $1B in Open Interest Wiped
It's merciless out there, and liquidity remains modest. Someone, somewhere is laughing.
With the ghost of Mt Gox making an appearance:
Bitcoin Market Impact From Mt. Gox Repayments Will Be Limited: Matrixport
with so much chain analytics available, still seems a bit clueless..
The mystery behind Bitcoin’s recent crash: Did Mt. Gox and the US government cause it?
Bitcoin sell-off next? Binance BTC balance shoots up $1.5B in one month
https://cointelegraph.com/news/bitcoin-sell-off-next-binance-btc-balance-shoots-up-1-5b-in-1-month
The article doesn't mention the obvious BTC transfers discussed above! Much of it going into... Binance.
Bitcoin leverage wiped clean: analyzing the 5th biggest week in liquidations YTD, its market implications
Interesting, but paywalled - will see if similar analysis elsewhere. Such huge whipsaw action would indicate a derivatives reset... to start the game again!
Someone is laughing hard. The hood thing about being in crypto for a few years is not being upset by these crazy swings
Forgot to mention, I think the dump happened at the end of the US trading day, so kinda laughed as the last hour of trading can be a joke - the notorious "plunge protection team" is a favourite "wtf meme" - in this case was more like a "plunge pool party".
Anyway, the little people have to be either shit-hot traders or take the medium term view.
It's a double-whammy if it took our both longs and shorts - not in any way synthetic, just an efficient market wobble.
Plunge protection scheme, that is funny!
The little people really do have to do that or at least be on lookout that they don't fall foul of the big players market manipulations which always suit them best.