The Cushion Narrowed From Both Ends
Two forces compressed it from 16% to 10% simultaneously.
The price fell, which is the obvious one. Less obviously, the average cost basis rose, because every purchase above the old average pulls the groupโs break-even level toward the current price.
That second mechanism means the cushion thins as buying continues, even with no selling at all. Strong inflows at elevated prices are what produce a fragile cohort, not what prevents one.
#binance
#binancenews
Two forces compressed it from 16% to 10% simultaneously.
The price fell, which is the obvious one. Less obviously, the average cost basis rose, because every purchase above the old average pulls the groupโs break-even level toward the current price.
That second mechanism means the cushion thins as buying continues, even with no selling at all. Strong inflows at elevated prices are what produce a fragile cohort, not what prevents one.
#binance
#binancenews