Largest Alt Coin liquidation event in two years.

This week we experienced what appears to be the Largest Alt Coin liquidation event in two years. Hundreds of millions in interest were wiped out in a matter of minutes. This number is staggering and was caused from a ~10% move on Bitcoin, which in the grand scheme of crypto volatility is relatively small. What this means is traders got complacent and over-levered their positions, leaving them vulnerable to liquidation on moves like this.

​

Rumors circulated that the reason for this drop was somehow due to a report from an analyst at MatrixPort who believed there was a reasonable doubt of the BTC ETF being denied. Its crazy to think a single analyst report could be the source of hundreds of millions in liquidations. It is far more likely that this was a liquidity grab meant to clear some of the leverage, which as seen in the above chart, had become very thick very close to the current price of BTC. We have now almost entirely retraced the liquidation cascade, further lending to the idea this was a liquidity grab.

As we draw closer to the expected BTC spot ETF approvals with deadlines this month, there will likely be a lot of violent moves on majors as well as altcoins. Beluga recommends everyone to be careful with their leverage, and manage risk properly.

For more: https://beluga.beehiiv.com/p/largest-alt-coin-liquidation-event-2-years