As leverage ebbs, better to get out first
On October 17, Papertrade's daily revenue fell to $890,000, down 83% from the previous period. Daily trading volume was $54.2 billion, 90% below the October 10 peak of $564.2 billion. There were 622 new accounts, less than half of the 1,322 added the day before.
With on-chain perpetuals volume collapsing like this, leveraged capital is pulling out. Longs have been liquidated, and no new positions are stepping in to replace them. This kind of sharp drop in volume hits open interest first, then spills over into spot demand. Any rebound from here could easily turn into a bull trap, while a weaker exchange rate could deepen the pullback. Leaders in sectors like this tend to get repriced first; rebounds near previous highs are likely to get knocked back. Don't try to catch a falling knife during a low-volume bounce—wait for volume to pick up and prices to hold steady before taking another look.
At this point, are you cutting your position and waiting for a pullback, or betting that volume will return and going long?
$BTC $ETH $HYPE
On October 17, Papertrade's daily revenue fell to $890,000, down 83% from the previous period. Daily trading volume was $54.2 billion, 90% below the October 10 peak of $564.2 billion. There were 622 new accounts, less than half of the 1,322 added the day before.
With on-chain perpetuals volume collapsing like this, leveraged capital is pulling out. Longs have been liquidated, and no new positions are stepping in to replace them. This kind of sharp drop in volume hits open interest first, then spills over into spot demand. Any rebound from here could easily turn into a bull trap, while a weaker exchange rate could deepen the pullback. Leaders in sectors like this tend to get repriced first; rebounds near previous highs are likely to get knocked back. Don't try to catch a falling knife during a low-volume bounce—wait for volume to pick up and prices to hold steady before taking another look.
At this point, are you cutting your position and waiting for a pullback, or betting that volume will return and going long?
$BTC $ETH $HYPE