Bitcoin just took the biggest L ever, dumping over $14000 in ten days from $81000 after the US midterms straight down under $67000 on Saturday morning. 🖤 This sinister drop hit right when risk-on vibes started fading fast plus some crypto-specific drama made everything way worse fr.
Politics Wall Street And Liquidity Chaos 🕸️
The democratic sweep kicked off the total rejection. BTC sold off hard right after the election with dems taking both chambers falling toward the mid $75000s before rebounding sharp to $81000 but that glow up vanished instantly from fresh uncertainty around regulation fiscal policy and tech spending during the second half of trumps term.
Wall street crashed in a tech led nightmare the very next day after that $81000 rally. The nasdaq plunged over 5% in one session while the s&p 500 had its worst day in months. For reference the s&p 500 lost roughly $3 billion in a single session which is more than the entire crypto market cap rn. BTC followed the equities tumble acting like a high beta risk asset when everyone flees tech and speculative plays. 🌑
Spot btc etf demand just ghosted completely. Institutional flows into those vehicles offered zero support with withdrawals nearing $1.3 billion in a week marking the worst performance since june. The loss of that strong marginal demand source lined up perfectly with extra selling pressure. 💀
Crypto liquidity is drying up like a cursed desert. Reports showed estimated 30 day spot btc demand falling to around negative 280000 btc and perpetual futures demand flipped negative too. Tether supply contracted with usdt market cap dropping about $6.6 billion over 60 days hinting that dollar liquidity funding earlier rallies has exited the chat. 🦇
Inflation Nvidia Drama And More Sins 🔮
Hotter cpi numbers sparked fresh fed hike fears. October consumer inflation came in higher than expected pushing markets to price in another rate increase in december. Higher yields and a stronger dollar make non yielding speculative assets less cute and btc broke multiple technical supports right after the data dropped.
Ppi data on friday added even more pressure. Producer price stats showed annual inflation staying elevated even if the monthly figure felt less alarming strengthening worries that price pressures will stick around and keep the fed restrictive longer. 🕯️
Jensen huang drama and the nvidia crisis exploded next. The former biggest company by market cap was already under heat from reports on his personal ties and governance questions then he resigned creating a leadership shock for the ai trade centerpiece and this mess spills way beyond nvda straight into crypto and btc. 👁️
Strategys msci removal landed another blow. MSCI excluded strategy and metaplanet from major indexes turning talk into reality so passive funds tracking those benchmarks must dump or slash mstr positions hurting its ability to raise cash for more btc buys and possibly triggering extra bitcoin sales.
Leverage trades went totally feral once btc tanked below key levels triggering a sell off cascade. 24 hour liquidations rocketed past the $1 billion mark with longs taking the biggest hit and this forced selling accelerates declines fast as lower prices trigger more liquidations creating a vicious loop. 🩸
All that chaos formed a near perfect storm for quick painful pain to btc and the whole crypto market. The question is will things improve soon or will peter schiff finally prove right? 🐦⬛
Just another echo from the void by iconofsin.eth 💖
