Forget The SEC And Bitcoin ETF Approval Drama, Here’s Why Bitcoin Flash Crashed
Summary
Bitcoin experienced a flash crash from over $45,500 to as low as $41,100, with debate over the cause. The Wolf Of All Streets attributes the crash to the ultra-high positive funding rate on perpetual futures contracts, leading to an imbalance in the market and triggering a wave of liquidation. Over $669 million in positions were liquidated, with the majority being long positions. The analyst suggests that the crash was an intentional move orchestrated by "degens" due to the high funding rate. The recent sell-off indicates that bears may be in control in the short term, with the potential for Bitcoin to track lower towards $38,000 or lower.
