Crypto Market Takes A Breather
Key Takeaways
- The crypto market faced nearly $1 billion in long liquidations on Wednesday morning, stymieing Bitcoin and Ethereum’s momentum and punishing altcoins. We viewed this as generally healthy market behavior and conducive for the next leg up.
- Long-term holders took profits off of the table following Bitcoin’s recent ATH – selling 39.6k BTC while short-term holders bought 51.3k BTC. The reentrance of short-term holders into the market is generally a good sign for price.
- Metrics such as new address growth and DEX user growth point toward potential outperformance for altcoins but we remain skeptical about a full rotation from BTC.
- Robinhood’s earnings provide key insights into retail’s limited role in the recent bull run and the value of memes.
- Monthly options expiry is on Friday – key level to watch is $55,000. Current volumes lean bullish.
- Bottom Line: We expect macro tailwinds and bullish on-chain fundamentals, among other factors, to continue to push Bitcoin and Ethereum towards their respective price targets of $100,000 and $10,500 by year-end.
Wash-Out Wednesday
On Wednesday morning, US investors awoke to a crypto market reeling from overnight liquidations across Asian markets. Over $100 million in Bitcoin long positions and $250 m...Reports you may have missed
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