#58 The Wick
What's going on at Binance US?
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What We Are Watching
We further breakdown our case for these cryptos here : What We Are Watching
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LMFAO - China seeks public opinion to unban Bitcoin and crypto mining activities
Bitcoin subreddit at 3.5m subscribers, this number tends to be proportional to BTC price. It will be interesting to check back in December to see what the subscriber number is. For some comparison, the wallstreebets subreddit which is 1.5 years old has 11m subscribers.
Well mainstream crypto news is worthless with BTC at the ATH everyone is just foaming at the mouth and shit-posting. So, full DeFi news today!
The multi-chain world is expanding with a new bridge from Terra to Cosmos.
A complete Guide to Popsicle finance.
Bitwise Launches Polygon Fund for Ethereum-Scaling Exposure
See below for my comments on this tweet.
A Break From Our Usual TA
This morning when I was drinking my coffee and trying to get caught up with where the crypto markets moved while I was asleep, I almost spat my coffee onto the screen. Just about every chart I had up wicked down and by the time I could click through say 3-4 tabs almost everything had recovered again. Had to be bots or something because it was across multiple tokens, BTC,ETH, ICE,SPELL,BADGER, things I’m keeping my eye on right now, all experienced it at the same time. The only exception was CVX but that’s along story for why that might be the case.
Anyways, these were huge wicks and of course I started hunting through charts and asking people on discord/twitter if anyone knows anything. Of course, this is not unusual in crypto and there is a lot of leverage in the system. Many people may have borrowed against their BTC/ETH to buy altcoins like ICE,SPELL,BADGER etc. some of these people are probably sophisticated and running algo-bots or using stop losses to manage risk. From what I can tell this was probably just another liquidity cascade and when that happens anyone that was short quickly covers and anyone that was waiting to BTFD jumps in with fat buys.
However, Boomer and I were just recording our next private podcast last night where I was breaking down Bitcoin market structure and explaining to him how bitcoin liquidity is spread thinner than most people imagine and not every crypto exchange is equal. Have a look at this…
First up Coinbase
What wick am I even talking about? Looks like nothing happened really, and maybe you are thinking that I am just zoomed too far out. Well lets keep going.
How about FTX next.
Same scale as above, same asset, same time period, and completely different results. Wow, life is boring over at Coinbase. They are all just sitting there HODLing their BTCs waiting for that big pump, while the chads and lads over at FTX are making and breaking fortunes on the 15 min candle. Imagine if you had a buy order sitting on FTX at $60k closed it out 1 minute later and called it a year. Remember though someone was on the other side of that and sold there BTC at $60k only to watch someone buy that exact some BTC from someone else a few minutes later at $65k.
Last, and yes least, going back to the Tweet. Lets look at the exchange run by CZ, the CEO of Binance, who wrote that tweet.
I have no words for this, or I did literally pause and stare at this chart for a while. If you had a buy order at $9000 on Binance.US you would have made a 600% return in 1 minute. Please if you bought BTC at $9000 on Binance.US reply to us so we can get you on the podcast.
Root cause analysis, Binance is dangerous. Stay away. We’ll throw the yellow flag to FTX as well. Clearly stop loses are dangerous as well as they would not be serving there intended purpose in this type of market structure. This is a dangerous game.
Hopefully Binance and FTX can address the root cause of these events because this is not a good look.
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