Folks! The bulls have been taught another lesson! $BTC
Let’s break down the logic behind this drop. It wasn’t caused by a single piece of bad news, but by a triple whammy of macro factors, capital flows, and leverage…
💥 CPI came in hotter than expected, and rate-hike expectations surged
The probability of a rate hike in December shot straight up. The 2-year U.S. Treasury yield surged 17 basis points in a single day, its biggest gain in 19 months. Non-yielding assets have no defense against rapidly rising interest rates.
💥 ETFs bled for five straight days, while stablecoins lost $6.6 billion in 60 days
Spot BTC ETFs recorded net outflows for the fifth consecutive trading day. USDT’s market cap shrank by $6.6 billion in 60 days, its biggest decline since FTX. The war chest is dwindling—where will the buying pressure come from?
💥 Longs accounted for 64.5% of liquidations, and the leverage structure is extremely fragile
Across the market, longs made up nearly two-thirds of liquidations over the past 24 hours. A $52 million buy order at 73,000 was wiped out in one go. Open interest in perpetual futures rose 12% over 30 days, while the price of crypto fell 10%. Leverage is piling up as prices fall—once the market drops further, this structure could trigger a cascade of liquidations…
Let’s break down the logic behind this drop. It wasn’t caused by a single piece of bad news, but by a triple whammy of macro factors, capital flows, and leverage…
💥 CPI came in hotter than expected, and rate-hike expectations surged
The probability of a rate hike in December shot straight up. The 2-year U.S. Treasury yield surged 17 basis points in a single day, its biggest gain in 19 months. Non-yielding assets have no defense against rapidly rising interest rates.
💥 ETFs bled for five straight days, while stablecoins lost $6.6 billion in 60 days
Spot BTC ETFs recorded net outflows for the fifth consecutive trading day. USDT’s market cap shrank by $6.6 billion in 60 days, its biggest decline since FTX. The war chest is dwindling—where will the buying pressure come from?
💥 Longs accounted for 64.5% of liquidations, and the leverage structure is extremely fragile
Across the market, longs made up nearly two-thirds of liquidations over the past 24 hours. A $52 million buy order at 73,000 was wiped out in one go. Open interest in perpetual futures rose 12% over 30 days, while the price of crypto fell 10%. Leverage is piling up as prices fall—once the market drops further, this structure could trigger a cascade of liquidations…
