The Tide Pulling Out
The Bloodbath
The bloodbath that has persisted for the better part of the past seven months continued this weekend, with the market shedding an additional $200 billion in total market cap, falling below the $1 trillion mark for the first time since late 2020. Yesterday was the single biggest decline for bitcoin (-16%) since March 2020. At the time of writing (early morning hours of June 14th), there have been a total of $1.2 billion in liquidations of leveraged positions in the futures market.
We are witnessing a combination of macro forces and over-leveraged positions in the market to result in the forced selling of BTC and ETH.
First, a couple of notes on the macro landscape.
Rates
On Monday, we saw the yield curve invert briefly, for the second time this year, as the 10Y-2Y went negative.
Reports you may have missed
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BTC ETFS SEE MASSIVE INFLOWS: IS CRYPTO NATIVE CAPITAL SIDELINED? BTC ETFs saw over $2.2 billion in net inflows across all spot ETFs from Monday through Wednesday of this week—the largest three-day sum of inflows since the products launched in January—bringing the five-day moving average to north of $500 million. This is certainly impressive and speaks to the explosive breakout we have seen this week. Source: Farside Investors, Fundstrat We've...
