In one sentence: Last night wasn’t crypto going up—it was the shorts handing out “red envelopes” to the longs.
BTC briefly broke through 70,000, and 1-hour leveraged short positions worth $1 billion were liquidated—this kind of market doesn’t qualify as a trend; it’s a liquidation-driven market.
Now look at US stocks: MSTR +12%, COIN +9%, Circle +9.4%, BitMine +9.7%. The two that surged the most (MSTR, BitMine) are companies whose balance sheets are “all in crypto.” What is the market buying? It’s buying pure-leverage options on a rising crypto price.
My take: sentiment has already run ahead of price. While coins are still chopping around below 70,000, the stocks have already priced in expectations above 70,000. Chasing after a spike in US stock concepts here isn’t a good risk-to-reward. If you really want to play it, wait for BTC to hold above 70,000, and then consider it again after the stocks pull back.
BTC briefly broke through 70,000, and 1-hour leveraged short positions worth $1 billion were liquidated—this kind of market doesn’t qualify as a trend; it’s a liquidation-driven market.
Now look at US stocks: MSTR +12%, COIN +9%, Circle +9.4%, BitMine +9.7%. The two that surged the most (MSTR, BitMine) are companies whose balance sheets are “all in crypto.” What is the market buying? It’s buying pure-leverage options on a rising crypto price.
My take: sentiment has already run ahead of price. While coins are still chopping around below 70,000, the stocks have already priced in expectations above 70,000. Chasing after a spike in US stock concepts here isn’t a good risk-to-reward. If you really want to play it, wait for BTC to hold above 70,000, and then consider it again after the stocks pull back.