Bitcoin’s New Act: Less Drama, More Strategy! 🤔

Oh the joy! Bitcoin’s liquidation events are now more boring than a Sunday afternoon without Netflix. No more of those exhilarating, heart-stopping swings of 2021. Yawn.

Bitcoin (BTC) liquidations are playing out like a completely different soap opera, according to blockchain firm Matrixport. Even with daily liquidations reaching a whopping $600 million, prices are just shrugging it off. How dull!

In a Feb. 19 research note, analysts pointed out that this is a far cry from the wild rides of 2020 and 2021, thanks to lower leverage in the market. How utterly mundane.

“Unlike the last bull market, where liquidations triggered extreme volatility, this time around, even with $600 million in Bitcoin and Ethereum liquidations on some days, prices are finding a bottom with minimal follow-through.”

Markus Thielen, independent analyst

Thielen says leverage in the system is now “relatively low,” and traders have become “more strategic” in setting stop losses. Maybe they’ve been watching too many strategy games on TV? The approval of spot Bitcoin exchange-traded funds by the U.S. Securities and Exchange Commission might have also given the market a bit more confidence, he added.

With Bitcoin no longer seen as a high-risk asset, the question is no longer if it could go to zero but how low it might drop. Spoiler alert: It probably won’t be as exciting as a freefall. While past data shows that liquidation-driven sell-offs are limited, risks still remain. Because, you know, life needs a little spice.

Analysts are now staring at the Inter-exchange Flow Pulse indicator, which tracks Bitcoin movement between spot and derivatives markets. Usually, more BTC flowing into derivatives means party time. But guess what? The indicator is currently flashing bearish, suggesting Bitcoin could face more resistance before a breakout. How utterly disappointing.

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2025-02-19 14:15