I’m not the only one who got jolted awake by Bitcoin crashing in the middle of the night.

The 83,000 support level is gone; we’re around 81,400 now. It wicked down to 81,200 and got bought back up, but volume hasn’t let up—14.7 billion in trading, a hard sell-off. ETH followed it down to 2,390, SOL is hovering around 100, and XRP got hit the worst, losing 5 points in a day. The losers’ list is more crowded than the gainers’ list. Shorts are making money today.

Two things really made it clear to me.

First, even safe-haven assets are getting dumped. Gold is at 4033, down 2.7 points; silver is getting hit even harder. Crude oil is in the green, though. Money isn’t flowing out—it’s disappearing.

Second, the chip trade is taking the ugliest beating. SOXL dropped 19 points in a single day, with 3.2 billion in volume—the third-highest by trading volume. SNDK, SK Hynix, and Micron are all getting crushed. Last week it was the most crowded trade in the market; this week it’s a full-on stampede for the exits.

Altcoins are even harder to look at. IOST got cut another 44 points. Anyone calling it a double kill two days ago has probably already closed out and is watching from the sidelines. ALT fell another 39. MAGMA did surge 59 points last night, with solid volume, but the market had already beaten that coin to death on the 23rd. There’s no new story, so I’m staying away.

Here’s a data point: three of the top ten gainers across the market are inverse ETFs. When things like SOXS and SQQQ push into the top ranks for crypto perpetual-futures volume, that’s a signal in itself—hedgers are buying in capitulation mode. Buying the dip on altcoins right now is like trying to pick up a knife at the bottom of a waterfall.

Here’s what I’m doing: leaving my spot positions untouched and closing all my long positions in futures. If we lose a support level, I’m not adding to my position. I’ll wait until Bitcoin gets back above 83,000. The only move worth making right now is to stay flat and watch until this wave of panic has run its course.

Tonight I’m watching to see whether SOL breaks below 100. If it does, altcoins could see another leg down; if it holds, we’ll reassess tomorrow.

Anyone who still has ammo, raise your hand in the comments.

#CryptoMarket