4th December 2021 > > Painful price action.

tl;dr

A near $10k move overnight is undoubtedly painful.

Market Snap

Market Wrap

Just yesterday I commented that “Open interest leverage in futures and options are at an ATH though with only a slight bias to the long side, diminishing the risk of a long or short squeeze.”

Let me stress that word “diminishing” because make no mistake, leveraged longs got killed in the last 24 hours, adding to the general market pain. Stocks seemed to be reasonably well behaved but look at that collapse in 10yr yields. That’s a whole point added to bond portfolios in just one trading day.

The key question is whether this sharp move means that we will now move sideways for a long period of time (as an example 2018 and 2019 after that sharp rally into the end of 2017), or whether this is just one of those things that happens in the BTC world.

To put things in context, we have gone from $69k to $47k in just 24 days – a drop of 32%. At the overnight low of $43.5k the drop was 37%. Even including the events of March 2020 and the COVID induced destruction of all risk markets, this is still a relative outlier. A BTFD approach has always worked well, but I hesitate to commend that course of action right now, in case you think that my commitment to cryptos is blinding my judgement.

Curious Cryptos’ Commentary – After that sell-off

What can I say?

Reserve Treasury Protocols (before they all go to zero