Bitcoin cratered almost 10% below $41,000 early Wednesday around the time Matrixport’s report about potential spot BTC ETF rejections, but it was more likely due to a leverage flush as the market overheated, a K33 analyst said in an interview.
Michael Saylor’s MicroStrategy was a rare crypto name moving higher on Tuesday.
Futures tracking the lesser-known token saw $68 million evaporate in leveraged bets in a 24-hour period.
Traders were moving capital from SOL to stablecoins suggesting profit taking, one analyst said in an interview.
Some liquidity pools built on the Metis network are offering as much as 200% in annualized fee rewards to users.
A pittance punted on COQ shortly after its issuance has yielded a massive return for one on-chain trader.
Key indicators tracking Bitcoin’s blockchain activity, miner flows, and the 200-day moving average suggest bitcoin is far from being overvalued and could continue to rally in 2024.
Investors will monitor Fed Chair Jerome Powell’s press conference Wednesday for signs of potential rate cuts next year.
“Corrections shake out ‘weak hands’ and leverage, allowing for a stronger foundation for eventual moves higher,” said well-followed analyst Will Clemente.
Bitcoin is trading at levels previously seen in April 2022, shrugging off a tough year marked by several implosions and regulatory clampdowns.