Today's flash crash was due to a long squeeze. It was catalyzed by the EU's hawkish stance on tapering their balance sheet, thus the day opened with equities risk-off resulting in an initial sell-off in equities which spilled over into some sell down of BTC and medium levels of fundamental inflows (selling) onto exchanges. The over-liquid longs then got stopped out which cascaded into a collapse in liquidity, ie, a long squeeze, resulting in $1.1b of BTC liquidations.
The squeeze offered ample opportunity for whales via HNWIs and institutions to step in and buy, and buy they did as reflected by the huge volumes traded on the blockchain across DEXs and centralized exchanges. Crypto is no stranger to such spikes in volatility which is one reason why the majority of traders lose money in crypto even in bull markets.
On- and off-chain metrics remain favorable. Nothing has changed. The tailwinds remain in effect. Exchanges are back to outflows (buying) wherein BTC and ETH are being removed, once again, from exchanges and into long term storage.
Crypto Report - Crypto flash crash
|Published:||7 Sep 2021 16:21 ET|
Like what you read?
Let us help you make sense of these markets by signing up for our free Market Lab Reports:
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2022 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.