The Fed Rug-pulls Bears
OI Rinse to Start the Week
This week the crypto market started off with a bang, marked by a liquidations-driven downturn on Sunday evening. The perpetual futures market witnessed a low liquidity liquidation cascade that wiped out approximately $2.7 billion in open interest across all cryptoassets, according to data from CoinGlass.
At the time, we perceived this event as a normal cleansing of overleveraged weekend positions and viewed any immediate market weakness as a buying opportunity. Following this shake-up, BTC, ETH, and SOL all demonstrated resilience, finding support at the previous week's low, and have since recovered essentially all losses incurred on Sunday.
Such liquidation cascades, though jarring, serve as a reminder of the inherent volatility in the crypto market. It's important to remember that achieving outsized returns typically involves navigating through acute periods of volatility.
Interestingly, this year has been somewhat atypical regarding price fluctuations, as evidenced by the occurrence of only seven daily drawdowns exceeding 5%.
If these trends persist until the end of December, this year will record the fewest instances of 5% drawdowns in Bitcoin's history, underscoring a period of relative stability for an otherwise volatile asset....Reports you may have missed
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