I don't have to say much to get this started as I'm sure if your reading this your probably well aware of all that's going on. Regardless, let's dig into the crypto as always and see what's rocking'.
Crypto's already off to a rough week, or month basically but today didn't help either and neither does the fact that Bitcoin and crypto whether or not we like it is correlated to the market and digest news just about the same way in terms of reactions and hype.
The Market
We have seen the market react harshly before however for whatever reason or another, the big players decided to choose today as a day to pull out, and we can't blame them, it is Friday and most short term traders/institutions will want to hold onto cash over the weekend as they can't be sure what may happen next. However nonetheless we are on track for the worst month in regards to the stock market as a whole. The S&P 500 SPX index, down 11.5% at last check, will register one of if not the most unsightly four-month period to start a calendar year since 1942, when it declined 11.85% '
Bitcoin
We've made mark of support after support however Bitcoin has seen anything but support today. As we saw the market sink today it made sure to tie a rope and an anchor to Bitcoin, and is pulling it as hard as it can. Yesterday we saw Bitcoin manage to pull itself back up and get on it's feet just touching the Fib levels between it was rejected harshly now bringing us to the dreadful sight we have before us. Long term I'm happy with stuff as it is and this is just how the market is right now, we've got a lot going on and there's not much we can do. But it'll end, and when it does we're gonna see a great sight. Right now though, I'm not gonna make any points as the market is simply too volatile to guess anything.
Liquidations
One of, if not the big factors to note in today's drop is that we are seeing a lot of volume being pulled from the market. Based on Coin Glass' stats in the last 24 hours alone over $281.33 Million worth of positions have been liquidated with $100 Million being in the last 4 hours alone. BTC took the biggest hit at $68.4 Million alone in liquidations with Ether only trailing behind at $55.4 Million. When you get to such low levels your gonna see big drops like this happen thanks to liquidations and futures positions traders. For those that are smart enough to avoid liquidation, most of them have sold or gotten rid of their positions out of pre-caution for more volatility to come. So think about that, you've got these large institutions getting rid of their heavily leveraged BTC and crypto positions, I don't think most realize but a lot of the money on the chain is thanks to leveraged positions. So when we see these kind of falls, those positions should be taken into account as those safe traders will play it safe in moments like this.
Overall?
Overall, just looking at the chart right now, it's been bearish however we can't do much to help change that. Worries surrounding the invasion by Russia of Ukraine have been adding to unease about the health of the global economy, as lingering battles with COVID-19 continue to hamstring parts of the world, notably China. Not only that but Biden has asked for $33 Billion in funds to support Ukraine in what the U.S is expecting to likely be a prolonged war that could go on for months to come. That itself hasn't helped ease fears of inflation with the U.S seeming releasing more and more money to aid Ukraine however we can't deny that it's necessary to support Ukraine. Otherwise, we may have a much more costlier fight down the road if we simply let Russia take Ukraine.
Anyway thank you for tuning in as always, please be sure to leave a like and follow! Comment and leave ideas as well, I love hearing other's ideas and nobody's perfect, but the least we can do is be open minded and listen to others! Thank you so much and have a great day!
~ Rock
Crypto's already off to a rough week, or month basically but today didn't help either and neither does the fact that Bitcoin and crypto whether or not we like it is correlated to the market and digest news just about the same way in terms of reactions and hype.
The Market
We have seen the market react harshly before however for whatever reason or another, the big players decided to choose today as a day to pull out, and we can't blame them, it is Friday and most short term traders/institutions will want to hold onto cash over the weekend as they can't be sure what may happen next. However nonetheless we are on track for the worst month in regards to the stock market as a whole. The S&P 500 SPX index, down 11.5% at last check, will register one of if not the most unsightly four-month period to start a calendar year since 1942, when it declined 11.85% '
Bitcoin
We've made mark of support after support however Bitcoin has seen anything but support today. As we saw the market sink today it made sure to tie a rope and an anchor to Bitcoin, and is pulling it as hard as it can. Yesterday we saw Bitcoin manage to pull itself back up and get on it's feet just touching the Fib levels between it was rejected harshly now bringing us to the dreadful sight we have before us. Long term I'm happy with stuff as it is and this is just how the market is right now, we've got a lot going on and there's not much we can do. But it'll end, and when it does we're gonna see a great sight. Right now though, I'm not gonna make any points as the market is simply too volatile to guess anything.
Liquidations
One of, if not the big factors to note in today's drop is that we are seeing a lot of volume being pulled from the market. Based on Coin Glass' stats in the last 24 hours alone over $281.33 Million worth of positions have been liquidated with $100 Million being in the last 4 hours alone. BTC took the biggest hit at $68.4 Million alone in liquidations with Ether only trailing behind at $55.4 Million. When you get to such low levels your gonna see big drops like this happen thanks to liquidations and futures positions traders. For those that are smart enough to avoid liquidation, most of them have sold or gotten rid of their positions out of pre-caution for more volatility to come. So think about that, you've got these large institutions getting rid of their heavily leveraged BTC and crypto positions, I don't think most realize but a lot of the money on the chain is thanks to leveraged positions. So when we see these kind of falls, those positions should be taken into account as those safe traders will play it safe in moments like this.
Overall?
Overall, just looking at the chart right now, it's been bearish however we can't do much to help change that. Worries surrounding the invasion by Russia of Ukraine have been adding to unease about the health of the global economy, as lingering battles with COVID-19 continue to hamstring parts of the world, notably China. Not only that but Biden has asked for $33 Billion in funds to support Ukraine in what the U.S is expecting to likely be a prolonged war that could go on for months to come. That itself hasn't helped ease fears of inflation with the U.S seeming releasing more and more money to aid Ukraine however we can't deny that it's necessary to support Ukraine. Otherwise, we may have a much more costlier fight down the road if we simply let Russia take Ukraine.
Anyway thank you for tuning in as always, please be sure to leave a like and follow! Comment and leave ideas as well, I love hearing other's ideas and nobody's perfect, but the least we can do is be open minded and listen to others! Thank you so much and have a great day!
~ Rock
