Bitcoin Market Is Not as Leveraged as it Looks, Gas Spikes as Ether Hits a New ATH

Bitcoin is back above $61,000 ahead of the weekend after a sharp decline took the leading cryptocurrency to under $58k last night.

What’s assumed to be an issue of a fat finger, it sent the price of Bitcoin crashing to about 10%, but it regained $62k back again soon enough.

While Bitcoin is currently struggling to move higher, Ether has gone ahead and hit its new all-time high just above $4,400. ETH is currently trading around $4,325; this jump in price has sent the funding rates higher, with the highest currently on Deribit at 0.0915%.

This latest bout of volatility has sent the gas prices on the Ethereum network to surge as demand picks up. The average fees jumped to $51.5, and gas prices went past 200 Gwei.

“Historically, when gas gets expensive, we’ve seen activity spike on alternative L1s. But now that Arbitrum and Optimism are live, L2s could wind up being the primary beneficiaries,” said Delphi Digital.

Ethereum scaling solution Arbitrum’s transactions went parabolic in early September, in less than two weeks of its launch. But since then, Arbitrum and another layer 2 Optimism, which went live in July and saw a jolt of adoption, have had their transactions fall and plateau for most of October.

Notably, Arbitrum currently has put a cap on network gas, and once that’s lifted, more activity could again be seen on the L2.

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As for Ether’s open interest, it also climbed to a new high of $12.52 bln, recovering fast from the drop to $$11.26 bln during this week’s volatility.

On CME, OI on Ether futures hit a $1.11 bln peak today, last seen last Wednesday. CME sits at 6th place in Ether OI, with Binance leading the pack with $3.06 bln notional OI followed by FTX’s $2.26 bln, according to Skew.

Unlike Ether, CME has the second spot for Bitcoin futures OI at $5.05 bln, having slipped from the top rank, Binance reclaimed its position again at $5.28 bln in OI. FTX at third place has some catching up to do at $3.89 billion.

Total OI has fallen to $24 bln from $26.47 bln early last week, while the highest Bitcoin funding rate on Bybit is at 0.0578%.

According to trader and economist Alex Kruger, the Bitcoin market is considerably less leveraged than people think because of investor protection; the regulated exchange CME requires 40%-50% in margin, which means maximum leverage is about 2x. On crypto exchanges, it’s much higher.

Interestingly, with Bitcoin above $60k, the interest in the cryptocurrency has fallen to June levels and before that early December levels.

“When Bitcoin reclaims April’s ATH, a lot of untapped demand will begin to unlock. Low retail engagement is shown in Google search results, which are as low as they were in May/June when Bitcoin was just $30K. Sustained highs will unlock demand for the next parabolic leg up,” noted Charles Edwards, founder of Capriole Investments.

However, greed in the market has flown high, with the Crypto Greed and Fear Index currently having a reading of 70, a fast shift in sentiment from ‘extreme fear’ last month at a reading of 24.

This is due to the interest of retail shifting to meme coins with SHIB, the latest darling. After SHIB dominated the market earlier in the week with an appetite for high risk still there, other dog coins are seeing the rotation of profits from SHIB and into them. SHIB 9.27% SHIBA INU / USD SHIBUSD $ 0.00
$0.009.27%
Volume 14.29 b Change $0.00 Open $0.00 Circulating 10 t Market Cap 41.08 b
5 h Web 3 and DeFi Dominates Coinbase Investment in Q3, Hits Top Spot on Apple’s US App Store 11 h Bitcoin Market Is Not as Leveraged as it Looks, Gas Spikes as Ether Hits a New ATH 1 d Zoomer Meme Coin (SHIB) Outperforms the Boomer Meme Coin (DOGE), Will This Mark the Top of the Cycle Again?

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Author: AnTy

It’s Not Over Yet! More Senators Come in Support as Crypto Continues to Fight Back

Over the weekend, the Senate voted 68-29 on the controversial bipartisan infrastructure bill to end the debate. However, the crypto community remains hopeful that the bill might get the amendment before the final vote on Tuesday. Kristin Smith, Executive Director at Blockchain Association, said,

“The Senate can do almost anything by unanimous consent (UC). So if there is a deal, we could see a compromise incorporated. So it’s not over yet.”

Senator Ted Cruz (R-TX) also spoke out in support of crypto as he tweeted, “Crypto got screwed tonight,” late on Sunday. Bypassing the bill as it is, the Senate will inflict billions of dollars of damage on the “growing & exciting” crypto industry and end up driving much of it overseas when not even a couple of Senators understand much about it, he said. Cruz tweeted,

“What the Senate said tonight: Let’s tax the hell out of something we know nothing about, so we can pass a giant bill we haven’t read and spend the American people’s money on stuff we can’t afford. It’s reckless & harmful.”

Senator Rob Portman, who helped with the creation of the bill and then later came up with his competing amendment that first excluded PoW miners and then PoS miners, also came in support of exempting miners, validators, stakers, developers, and node operators from the definition of a ‘broker’ on the Senate floor on Sunday.

While the language clarifies that the reporting requirement only covers brokers, Portman said they want to make “sure” that miners and others are exempted. He said in his remarks,

“While it’s not the intent of the underlying bill to include them, I believe we can do more to make this clear. Which is why I will continue to work with colleagues to clarify the intent of the information reporting language.”

Crypto support, Senator Cynthia Lummis updated the crypto community about all that the Senate is progressing in regards to the bill, saying,

“We’ve been able to have very productive conversations with senators on all sides of this issue, and if we could vote on amendments I think the digital asset community would be pleased with the outcome.”

The 30 hours for the amendment to need a vote is set to expire early Tuesday morning though lawmakers can unanimously agree to cut off debate earlier. If the amendment doesn’t get a vote or compromise can’t be reached, the original language will remain in the legislation.

“Tomorrow at 9 am, offices will be back in like usual. Feel free to call your senators to let us know how you think we should move forward,” said Lummis late on Sunday.

The legislation still has to clear the House, which can make changes in the bill that ultimately passes the Senate this week, giving lawmakers another chance to modify the provision. Ron Hammond, Director of Government Relations at Blockchain Association, said,

“The public pressure is working as more Senators express concerns to us privately about the bill text.”

“If there’s one thing that’s apparent, DC is shocked just how well of a fight we are putting up.”

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Author: AnTy

Smart Money Is Becoming Bullish on Ether, Bitcoin, and Cryptocurrencies Again

Over the weekend, cryptocurrency prices further made a recovery, with Ether surging to almost $2,400.

Since last weekend’s drop to $1,720, Ether soared about 40% and is currently trading around $2,270.

Despite this latest increase in price, the funding rate on Ether perpetual contracts is either negative or extremely low at 0.005%. With this, Ether’s price is now lower on the Binance futures market than CME, hence wiping out the arbitrage opportunity for institutional investors.

“Crypto native ETH sept basis (e.g., Binance, Huobi) now lower than CME’s ETH sept basis for first time since CME ETH futures went live. looks like boomers are feeling bullish on crypto (smarter money IMO),” noted trader CL of eGirl Capital.

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Open interest on Ether futures contracts meanwhile is also on the rise along with the price. Total open interest has now gone to $5.57 billion, up from $4.43 billion in late June but still down significantly from the $11.6 billion peak in early May, as per Bybt.

On the leading exchange Binance, OI on Ether futures is 534.16k ETH. In USD terms, it’s $1.21 billion, up from $935.45 million but down from $2.56 billion on May 10. When it comes to Bitcoin, Binance now has 88,000 BTC in OI, while about 11 days back, it was 81.2k BTC, which in itself was an increase from 57k BTC ATH just two days before that.

Amidst all this, the stablecoin market cap has breached $111 billion, making up 7.7% of the total crypto market cap. So far in 2021, stablecoin market cap growth is 3.7x, far outpacing the total YTD crypto market cap growth of 1.9x.

Tether (USDT) remains the dominant stablecoin with almost $62.9 billion outstanding supply, capturing 58.56% market share. USDC, with a $24.3 billion market cap, is not far behind, having a 23.62% market share.

Even algo-stables like TerraUSD, Fei, Liquity, and Frax are showing promising growth, now comprising about 8% of the total stablecoin market cap.

Stablecoins are seeing growth, particularly after the market crash as crypto investors flooded into stables seeking some yield. During the massive sell-off in May, the combined market share of USDC and USDT reached an all-time high of 7% as a percentage of the total crypto market cap, up from a mere 3%.

Ethereum, of course, has the largest piece of the stablecoin pie, with $73.4 billion of the $111 billion outstanding supply issued on its blockchain.

In terms of protocols, in the lending sector, total value locked (TVL) in Aave v2 has $6.73B worth of stablecoins, in DEX space, Curve is capturing $3B in stables, while as a yield aggregator, Yearn has $1.13B of stables on its platform.

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Author: AnTy

Bitcoin Shorts Fall While Institutions Wait In Cash After Basis Trade Evaporates

This weekend, the price of Bitcoin is making its way upwards to $34,500, but this has been on the back of even lower volume than the declining trend, given that it’s Saturday.

Bloomberg is currently looking at a key trendline that acted as a support for BTC price but is now struggling to break above. This flip, according to them, would be a bearish outlook unless prices can retake the barrier.

Originating at the March 2020 crash, the trendline acted as support as recently as May, when the cryptocurrency fell to about $30k. But to trader CL of eGirl Capital,

“The way ppl are positioned make me feels like we’ll never break sub 30k in a meaningful way (as in nuke to mid 20 and remain there).”

Meanwhile, despite the leading cryptocurrency still down about 48% from its all-time high in April, it is still up 19%, much better than gold, the stock market, or the US dollar.

Bitcoin’s sideways action is happening at a time when the US dollar is showing strength, keeping above 92 level. With this, US net shorts have fallen, for a second straight week, to their lowest level of $10.44 billion since April.

Meanwhile, in the futures market, indicators have bounced from recent lows, but a proper sentiment reversal is still not in sight.

In the week ended June 29, Bitcoin net shorts fell to 1,345 contracts from 1,528 the previous week.

When it comes to premium on major futures contracts, not much has changed, with those expiring at the end of September trading at a few hundred premium while the one with the December expiry has a premium of about $1,000. The increase in OI is also marginal. Trader CL said,

“BTC and ETH basis also look relatively bullish, as in I feel like a meaningful break sub 32k and we may start seeing consistent backward, which isn’t v likely since I don’t see a strong reason why this market should trade backward atm.”

As basis trade, the difference between spot and futures prices collapses, hedge funds are closing their positions and are back into cash. $200 million hedge fund, Nickel Digital Asset Management, run by Goldman Sachs and JPMorgan alumni, is one example.

This was to be expected amid signs that institutional investors are increasingly interested in the assets, said Anatoly Crachilov, the co-founder and the chief executive of Europe’s biggest regulated crypto hedge fund. Crachilov said in an interview,

“June will be remembered as a cash-rich, wait-and-see month.”

“The sideways market conditions throughout the month led us to exercise financial discipline and keep powder dry until risk/reward of re-emerging market opportunities warrant efficient deployment of capital.”

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According to OKEx futures data, BTC long/short ratio shows buying interest after it recovered last Friday and held up relatively well this week despite the recent price slide.

BTC margin lending ratio, which jumped to as high as 4.39 this week from last Friday’s 1.53 and is now at 2.82, also shows retail has started buying again.

Not to mention, a bill in Germany has taken into effect that indicates at least $13 billion in inflows, based on PWC hedge fund survey data from May. This is coming while banks are charging 0.5% on deposits. Crachilov said,

“The investment world has dismissed crypto on every leg down for the past decade, thus far to their detriment.”

“The most recent drawdown is ‘business as usual’ for anyone long enough in crypto business and with familiarity with Bitcoin’s polemical history.”

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Author: AnTy

US ETFs’ Record Inflows, Bitcoin Weekend Volatility, & Crypto Mining Machines on Sale

It’s the weekend, and the crypto market is volatile yet again.

For the past few weeks, weekends have been bearish, and the same is true this time as Bitcoin price trades around $35k, as it continues to chop between the $32k and $42k range. Eth is also down at $2,400, and the total market cap is around $1.5 trillion.

Amidst this, on Friday, Scott Minerd, the CIO at Guggenheim Partners, decided to impart knowledge with which the crypto market has already been familiar, having seen for weeks now.

Minerd, known in the crypto community for his bad takes on Bitcoin price, warned crypto investors of a volatile weekend.

The crypto market would have liked to share similar warnings about the traditional stock market as the US Dollar index took a spike to 90.44, but unlike crypto, they are not open 24x7x365.

The latest slump in Bitcoin price isn’t really affected by anything, although a lot is still going on in the market. With volume low, especially over the weekend, it is easier to move the prices.

According to Ian Rogers, chief experience officer at Ledger SAS, volatility is a feature and not a bug for cryptos; as he explained in his interview with Bloomberg, during volatility, people go from Bitcoin and into stablecoins and back into BTC when they think the cryptocurrency has bottomed.

“If you’re investing in cryptocurrency, it’s a long term game,” which means a time horizon of four years as crypto as an asset class overall “will grow for the foreseeable future,” he added.

The Money Flow

While China remains a risk to the price in the short term, there is no clarity from the country on banning crypto mining. Chinese state media, meanwhile, is collectively launching attacks on highly leveraged futures and quoting screenshots of Binance futures.

Additionally, miners remain cautious and have been moving overseas. Miners are also selling their equipment that has the Antminer S19’s cost drop from their previous highest point of $12,000 to now a minimum of $8,000, and continue to decline as more and more machines are being listed for sale.

This selling is by miners who “are worried about the government’s subsequent anti-mining policy,” noted local publication Wu Blockchain.

Bitcoin hash rate, however, isn’t showing any notable weakness, currently at 142 Th/s, down from about $171 Th/s all-time high from May 13, as per Bitinfocharts.

At the same time, US President Joe Biden is preparing for a big $6 trillion budget for the next fiscal year, sending the valuation of risky assets even higher.

All the money printing due to loose monetary policy has led to investment into US exchange-traded funds (ETFs) to rise to record levels, $324 billion in the first four months of this year, as per Refinitiv data. This is an increase of 180% from the same period last year.

The Joe Biden administration’s proposal to increase the U.S. capital gains tax also fuelled interest in ETFs. Besides tax liabilities, what makes ETFs attractive are their lower fees, benign passively managed, and redemption mechanism called “in-kind transfer,” which doesn’t involve paying cash but rather delivering the asset precluded from being taxed.

“The relaxation of the exemption rule requirements has allowed ETFs to be structured to cover narrower segments of the market such as marijuana stocks, ‘high conviction’ stocks, crypto-focused, etc.,” said Warren Ward, founder of financial planning firm Warren Ward Associates. And when one can have a basket, why would one choose a single stock, he added.

This growth can also be seen in Bitcoin ETFs and Ether ETFs in Canada, and such products in the US are expected to have similar spectacular results, but the SEC is yet to approve a single one.

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Author: AnTy

DeFi Protocol, Rari Capital, to Become a DAO After the $10 Million Exploit

Over the weekend, another DeFi protocol was exploited for about 2600 ETH, worth more than $10 million.

Rari Capital, whose first product is focused on delivering the highest yield, was attacked on Saturday. The funds were extracted from its Ethereum Pool before the attacker was stopped by pausing the contracts — the loss amounting to 60% of all users’ funds in the Pool.

The team shared in its post mortem that its Ethereum Pool deposits the ETH into Alpha Finance’s ibETH token as a yield-generating strategy.

What the attacker did was flashloan ETH from dYdX, deposit that ETH into the Pool, manipulate the value of `ibETH.totalETH()` by pushing it artificially high, and withdraw more ETH from Pool.

According to Alpha Finance, `ibETH.totalETH()` is manipulatable inside the `ibETH.work` function, and a user of `ibETH.work` can call any contract it wants to inside `ibETH.work,` including the Rari Capital Ethereum Pool deposit and withdrawal functions, but Rari Capital contributors were not aware of it.

To avoid any such issues in the future, Rari Capital will list the protocols it integrates to review their integrations. Also, prevent deposits and withdrawals in the same block or timelock by up to one hour to mitigate the speed of potential attacks.

Furthermore, the team will be checking invariants that shouldn’t need to be checked, internally review the protocols they are looking to integrate with for attack vectors, and enlist more top auditing firms other than Quantstamp and Omniscia.

The project already has another audit planned with OpenZeppelin.

Late on Sunday, the team announced that RariCapital would be becoming a decentralized autonomous organization (DAO), and the team’s allocation of $2 million RGT will be going to it.

As such, “There is no more Rari Capital team. There are only contributors to the protocol,” Jai Bhavnani of Rari capital.

“Decentralization was inevitable, the hack just accelerated evolution,” said Tetranode, an investor in the project.

In the next step, the team focuses on the reimbursement proposals that will go through the voting process.

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Author: AnTy

Bitcoin Overcomes Technical Hurdle; Ethereum Prints 7 Consecutive Green Monthly Candles

Before moving into the weekend, Bitcoin started seeing traction and made its way past $58,500.

As of writing, we are still keeping around $57k on the back of very low funding rates. The highest Bitcoin funding rate is currently 0.0376% on Binance despite the price of Bitcoin increasing by about 11.5% to its highest level since mid-April.

Low funding rate has been the case ever since April 17, when over a million traders were liquidated for $10.1 billion. The funding even further minimized after another $4 billion were liquidated on April 22nd.

The same has been the case for ETH funding rates which are the highest at 0.056% on OKEx, while the price continues to hit a new all-time high — up 44% in the last 8 days to climb to $2,955.07 today and 0.052 BTC on Friday.

With seven straight green months in a row, Ether had its largest-ever monthly close. ETH 0.19% Ethereum / USD ETHUSD $ 2,951.18
$5.610.19%
Volume 28.03 b Change $5.61 Open $2,951.18 Circulating 115.71 m Market Cap 341.49 b
11 h Bitcoin Overcomes Technical Hurdle; Ethereum Prints 7 Consecutive Green Monthly Candles 1 d Binance Smart Chain (BSC) TVL Reaches $45 Billion, Catching Up Fast to Ethereum 2 d “Institutional Money is Moving Toward Ethereum,” says Guggenheim’s Scott Minerd

With funding remaining flat, it means the rally is being led by spot buying, which makes it more sustainable and less prone to get wiped out by a brutal liquidation.

Open interest on Bitcoin futures also has yet to recover as it is currently at $19.8 billion, down from $27.68 billion on April 13. OI on Ethereum futures meanwhile continues to increase, perched on a record $8.5 billion, up from $2 billion at the beginning of this year.

Amidst all the positive action, hedge funds on CME that have been record short on Bitcoin since late last year to earn all the yield have also decreased their short exposure. Overall, the net short position has fallen to early March level.

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The latest price action has helped Bitcoin surpass the technical hurdle of its 50-day average price. According to traders, Bitcoin’s move above $57,000 is a bullish sign for further continuation, but it needs to be seen if it will be able to maintain this level.

Trader SmartContracter sees the current momentum to take bitcoin to $74,000.

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Interest in both Bitcoin and Ethereum continues to grow, especially the second-largest cryptocurrency, which has its big upgrade, London hard fork, with EIP 1559 coming in July. As we reported, Rothschild bought the shares of Grayscale Ethereum Trust for the first time in Q1, and Guggenheim’s CIO shared that money is also flowing into ETH and other credible cryptos.

Assets in Bitcoin products, including ETFs and ETPs, meanwhile have reached a record high of $9 billion at the end of the first quarter, as per ETFGI.

“If you make an investment today or you make an investment in early December like we did, you have to expect multiple 20% to 30% pullbacks in the bull-market phase,” Troy Gayeski of Skybridge Capital said this week on Bloomberg. “But that being said, I mean, the combination of extraordinary supply growth, we still think we’re in the early innings of the adoption cycle.”

Meanwhile, Mike McGlone of Bloomberg continues to see Bitcoin’s diminishing supply combined with the historically low interest rate and a substantial amount of money being pumped into the system to act as catalysts to take it to $100,000.

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Author: AnTy

The Long and Short of Bitcoin (BTC) This Week

Bitcoin entered the weekend on a bullish note, going above $60,150, just shy of reaching its all-time high of about $61,700.

But over the weekend, the prices end up going lower to $56,500 as $515 million Bitcoin longs got liquidated on Sunday. Overall, more than $1 billion was liquidated on the day, and the funding rate neutralized with the highest at 0.1219% on Bybit.

Now, Bitcoin has started this new week on a red note. As of writing, BTC/USD is trading around $57,500.

While April has started at -2.26% performance, the leading cryptocurrency ended the quarter first as the best one in eight years. Historically, April and quarter second both call for good things ahead.

“Bitcoin’s price has a lot of room to go,” says trader and economist Alex Kruger.

Miners are also busy accumulating all the BTC that they have been mining after selling a bunch at the beginning of the year.

Becoming Digital Gold

Bitcoin has a long way ahead with many more ATHs to hit; however, trader Alex Kruger points out how the digital gold’s run has been “behind in percentage terms.” And as its market penetration saturates, which will eventually, “price growth will then only grow in nominal terms, i.e., will fail to outpace inflation in larger time frames,” he said.

This is because the trader noted, Bitcoin will then “cease to be a fantastic speculative asset, and become a better store of value and medium of exchange. It will be even more akin to digital gold. Gold is an asset which in real terms (inflation-adjusted) is stationary.”

While digital gold will behave like precious metals, which has been flat over the years, Kruger says, “coins that derive their value from cash flow generation (and survive) will continue moving higher in real terms once bitcoin flattens.”

This is where decentralized finance (DeFi) tokens come, which will go in a different path than the largest cryptocurrency.

While BTC would be digital gold, DeFi would be “Onchain stocks,” and as we have seen with the stock market, it has been only going up.

What’s Market Speculating

While this is a long-term picture, in the short term, Bitcoin remains volatile as retail and institutions continue to come alike.

In terms of corporate exposure, after Tesla, Square, and MicroStrategy speculation doing the rounds in the market is of the popular departmental store Walmart ready to join them.

Not to forget that back in 2019, Walmart also applied for a cryptocurrency patent resembling a stablecoin. The Arkansas-based retail behemoth has also filed for several blockchain-related patents.

While Wal-Mart hasn’t declared anything, the market loves to speculate the kind of chain-reaction it will start — putting BTC in the balance sheet, rolling out BTC as a payment method in thousands of its locations, and employees being paid in BTC, which will lead to hyperbitcoinization.

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Author: AnTy

Ethereum Price Bounces as the Network Prepares to Attract a New & Wider User base

Ether enjoyed some green moves over the weekend, going as high as $1,755 before making its way to $1,650 on Monday. As of writing, ETH/USD is trading around $1,700.

This upward move followed Bitcoin, making some recovery in tandem with the stock market. Besides aligning with wide market appreciation, Ether’s greens could also be attributed to an upcoming significant change to the network.

Over the weekend, Ethereum blockchain developers approved the EIP-1559 that will burn the network fees paid in Ether, creating a positive feedback loop for its price. The proposal will be part of the London hard fork that can come as early as July.

“This is probably one of the biggest milestones we’ve seen recently,” said Eric Turner, director of research at cryptocurrency analytics firm Messari. Up until the EIP 1559 goes into effect, the supply of Ether has been theoretically infinite. “Now, they’re actually controlling inflation on Ethereum,” and “in some cases, you’re looking at negative inflation, so it’s definitely important,” Turner said.

While scaling Ethereum will lower fees, per user, at the same time, it will “increase the overall userbase by even more, and therefore increase the total fees,” notes Qiao Wang of DeFi Alliance.

This proposal will help attract a new user base by making the platform “easier, faster, and cheaper to use,” explained Wang. Implementing EIP-1559 would mean that only Ether can be used to pay the transaction fees on the network, cementing Ether’s role in the ecosystem.

Tim Beiko, a senior product manager at ConsenSys, also said, going forward, “we’ll gauge demand for the network, and we put that average price as part of the network itself.”

EIP-1559 “fixes a bug in the economics of Ethereum we’ve known about from the start,” Beiko added.

A small bounce in Ether’s price relative to Bitcoin can also in part be attributed to NFTs (non-fungible token) going mainstream.

Traditional media is all over the NFTs, which are being sold for a hefty price. Recently, a publicly available 10-second video clip was sold for $6.6 million.

“At this point, NFTs have made a greater impact than DeFi. Both in terms of cultural impact and news users brought into the wide crypto ecosystem,” said Wang. According to him, it is largely because NFTs are easier than DeFi, from a users’ perspective. “Playing games, collecting items are easier than complex financial games,” he added.

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Author: AnTy

Holiday Crypto Dip & Reversal; Strong Week Ahead After Leveraged Longs Rinsed Out

The cryptocurrency market is already recovering fast after the weekend dip.

Late Sunday or early Monday, the price of Bitcoin went down to about $45,700 level not long after hitting a new all-time high at nearly $50,000.

Already, BTC/USD has traded above $48k and is now back to targeting the ATH.

However, this time this buying power didn’t come from Coinbase, the biggest exchange in the US, as there has been no premium on the exchange compared to Binance, Huobi, and OKEx.

Bitcoin’s losses came despite the dollar keeping near two-week lows on disappointing employment data and looking for evidence that the US rebound would outpace the economies of other major countries.

However, many financial markets are out in the United States for Presidents’ Day, and in Asia, the markets remain closed for Lunar New Year.

The prominent reason for the dips has been simple, according to trader and economist Alex Kruger, which is also the only bearish thing, “degen longs abusing leverage.”

This can be seen in the almost $1.9 billion liquidated in the last 24 hours, as per Bybt. Among the 303,349 traders liquidated, the largest single liquidation order happened on Huobi-BTC, valued at $21.25 million, and the highest liquidated amount on Binance at nearly $1 billion.

Interestingly, only $582 million of it belongs to Bitcoin liquidations, the majority of them long.

Most of the liquidations belong to altcoins that include not only Ethereum but DeFi coins, including the likes of AAVE, CRV, UNI, 1INCH, BAL, and COMP.

And this is why Kruger is bullish on the risky assets this week noting,

“I expect a strong week across risk asset and crypto assets. Crypto needed leveraged longs to get rinsed out. We just got that.”

The funding rates across exchanges on both Bitcoin and Ethereum perpetual contracts have calmed down to 0.01% to 0.04%, as per Viewbase.

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In tandem with Bitcoin, the rest of the cryptocurrency market took a fall, with Ether dropping to $1,655 level ETH -0.10% Ethereum / USD ETHUSD $ 1,813.21
-$1.81-0.10%
Volume 37.76 b Change -$1.81 Open $1,813.21 Circulating 114.69 m Market Cap 207.95 b
5 h Canadian Singer, Grimes, Entering the NFT Scene; Volume Jumps 2.6x This Month 7 h Contentious EIP-1559 Seeking Community Consensus as Ethereum Miner Revenue Hits an ATH 8 h Holiday Crypto Dip & Reversal; Strong Week Ahead After Leveraged Longs Rinsed Out
. While Ether is aiming for $1,800 yet again, the overall market capitalization has recovered half of its $110 billion losses and yet again is on the way to the $1.5 trillion mark.

1% to 4% gains are recorded across the crypto assets, which for some cryptocurrencies goes up to 7%.

As for those, who might see this as the top of the market, the total market cap is only up 1,150% from the March 2020 lows, which are nowhere near the 2017-2018 bull market that resulted in the total market cap increasing by 4,500%.

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Author: AnTy