$19 Billion in Liquidations
Thoughts on the largest liquidation event in crypto history.
"Covid crash: $1.2 Billion in liquidations FTX crash: $1.6 Billion in liquidations
Today: $19.16 Billion in liquidations"
Thoughts on current market state:
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Survive. Hope none of you all here got liquidated on margin. The nature of crypto is that for outsized returns, you risk outsized drawdowns - that's why we are here.
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I think crypto market overall is in a weird spot right now.
On the positive side, we are in a global macro situation that's very favorable, a ton of new money is being printed. Flowing into equities, flowing into gold. (they HAVE TO print their way out of this debt!)
Yet, for institutional investors, why would they bet on crypto right now? You have almost "guaranteed" returns from AI ecosystem stock bets. And at the same time, upside on crypto feels even limited, to a degree.
Probably the reset was necessary anyway. Markets like to move in a way to cause max amount of pain.
I see two paths right now:
Optimistic path: we suffer for the weekend, and we resume to 4T+ and a steady uptrend
Pessimistic path: liquidation were a sign of markets being overextended, and we get further dumping throughout the week with fud of "cycle being over"
I think right now it's kind of a weekend "scam dump".
If we still see weakness on start of the week I'd be concerned, personally.