🔥 One thing Warsh says and retail traders get skinned alive! After $1 billion in liquidations, the market goes dead silent—is this a shakeout or a crash?
You all saw Fed Chair Warsh’s remarks at the annual meeting on Friday, right? On the surface, he was defending a September rate hike, but when it came to the path for October, he was vague and evasive. More interestingly, he also used the AI boom to make his case, warning that AI investment could drive inflation higher. After all that rhetoric, the FedWatch estimate of the probability of an October rate hike was abruptly hammered from 27% to 15%.
But guys, don’t let appearances fool you! Looking back at this past week, it was basically market whales repeatedly using the Fed as cover to fleece traders. Wednesday’s CPI came in at 3.7%, straight-up above the 3.6% forecast, while core CPI remained stubbornly high. As soon as the data came out, the odds of an October rate hike surged to nearly 49%, and Bitcoin instantly plunged below $83,000. Things got even uglier on Thursday, when it crashed below the $80,000 mark. Then on Friday, Warsh came out and said, “I’m in no rush to take a position,” and the market put on a show of bouncing back to around $82,000.
Isn’t this classic expectation management? The data clearly came in hotter than expected, Treasury yields climbed back to 5.13%, and crude oil stayed above $106. The inflation monster hasn’t been defeated! The Fed has merely bought the market a bit of breathing room. Don’t assume the bull market is back.
Just look at the carnage on the charts. Nearly $1 billion in liquidations across the crypto market in 24 hours on Thursday! Ethereum plunged more than 6%, with $265 million in long positions alone getting liquidated. How many retail traders’ hard-earned savings turned into market whales’ profits overnight? By today, liquidations had fallen to $315 million. On the surface, leverage has been flushed out and risk has eased—but what’s really going on?
Retail traders have been fleeced so badly they’ve gone numb and lost all interest! Google searches for “Bitcoin” have fallen to a multi-year low; Bitcoin spot ETFs have seen $530 million in net outflows since October; and money across the market is clinging to BTC (now 57.7% of the market), while altcoins are lifeless. Even Strategy adding 250 BTC at an average price of $86,194 hasn’t been enough to change the cold reality that outside money isn’t willing to come in. This stabilization isn’t because buyers are stepping in—it’s simply that the longs have been wiped out and selling pressure has temporarily run its course!
You all saw Fed Chair Warsh’s remarks at the annual meeting on Friday, right? On the surface, he was defending a September rate hike, but when it came to the path for October, he was vague and evasive. More interestingly, he also used the AI boom to make his case, warning that AI investment could drive inflation higher. After all that rhetoric, the FedWatch estimate of the probability of an October rate hike was abruptly hammered from 27% to 15%.
But guys, don’t let appearances fool you! Looking back at this past week, it was basically market whales repeatedly using the Fed as cover to fleece traders. Wednesday’s CPI came in at 3.7%, straight-up above the 3.6% forecast, while core CPI remained stubbornly high. As soon as the data came out, the odds of an October rate hike surged to nearly 49%, and Bitcoin instantly plunged below $83,000. Things got even uglier on Thursday, when it crashed below the $80,000 mark. Then on Friday, Warsh came out and said, “I’m in no rush to take a position,” and the market put on a show of bouncing back to around $82,000.
Isn’t this classic expectation management? The data clearly came in hotter than expected, Treasury yields climbed back to 5.13%, and crude oil stayed above $106. The inflation monster hasn’t been defeated! The Fed has merely bought the market a bit of breathing room. Don’t assume the bull market is back.
Just look at the carnage on the charts. Nearly $1 billion in liquidations across the crypto market in 24 hours on Thursday! Ethereum plunged more than 6%, with $265 million in long positions alone getting liquidated. How many retail traders’ hard-earned savings turned into market whales’ profits overnight? By today, liquidations had fallen to $315 million. On the surface, leverage has been flushed out and risk has eased—but what’s really going on?
Retail traders have been fleeced so badly they’ve gone numb and lost all interest! Google searches for “Bitcoin” have fallen to a multi-year low; Bitcoin spot ETFs have seen $530 million in net outflows since October; and money across the market is clinging to BTC (now 57.7% of the market), while altcoins are lifeless. Even Strategy adding 250 BTC at an average price of $86,194 hasn’t been enough to change the cold reality that outside money isn’t willing to come in. This stabilization isn’t because buyers are stepping in—it’s simply that the longs have been wiped out and selling pressure has temporarily run its course!
