$SHOP fell 2.475% today to around 145, with open interest at 836 and the funding rate back to zero. When geopolitical risks emerge, tech stocks are the first to be sold off; a funding rate of zero means neither longs nor shorts are really taking action, just sitting still. This is not panic selling, but a withdrawal of liquidity.
The price has already broken the previous low, but without volume, which means it is grinding lower. If tensions in the Middle East heat up again, contracts with this kind of poor liquidity are the easiest to be used as cash machines. Open interest has not expanded, which means it has not yet reached the stage of panic-driven exit; bulls may still be waiting for a rebound.
Trading tag: #TradFi #链上美股 #SHOP
Where do you think this line of reasoning is most likely to be wrong?
The price has already broken the previous low, but without volume, which means it is grinding lower. If tensions in the Middle East heat up again, contracts with this kind of poor liquidity are the easiest to be used as cash machines. Open interest has not expanded, which means it has not yet reached the stage of panic-driven exit; bulls may still be waiting for a rebound.
Trading tag: #TradFi #链上美股 #SHOP
Where do you think this line of reasoning is most likely to be wrong?