Liquidations Wipe Out $2.7 billion in OI, IMX Breakout Strengthens its Technical Picture

Dec 11, 2023
Market Update On Sunday evening, the perps market experienced a low liquidity liquidation cascade, eliminating about $2.7 billion in open interest (source: CoinGlass) across all coins. We interpret this as a healthy purge of some overleveraged traders, and any immediate market weakness should be viewed as an opportunity to buy on dips. $BTC found support at last week's low and has since recovered about half of last night's dip. Today, our focus will be on which assets rebound the strongest from last night's drawdown. Currently, BTC is trading at around $41.5k, and $ETH is just under $2200, while most altcoins have retraced 5-10% from last week's highs. Notably, $OP continues to perform well, up 5% on the day, reaching its highest level since April. Other assets showing resilience include $TIA, $IMX, and $INJ, all up over 5% in the past 24 hours. Outside of crypto, it's a significant week for macro developments, with the November CPI data due on Tuesday and the Fed's final interest rate decision of the year on Wednesday. Markets are eagerly anticipating the Fed's updated economic projections, with four rate cuts already priced into the futures market for next year. The DXY is moving higher today, back above 104, as interest rates climb ahead of tomorrow's CPI announcement. Despit

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