Finance News
By Steven Anderson
1 / 12
Adam Cochran pointed to how there were a lot of crypto gurus who were promoting long dead coins for massive pumps.
2 / 12
For clarity, Adam Cochran is known for his long insightful threads about the cryptocurrency market.
3 / 12
He further stated how such a trend can lead to dicey futures market. He said it was worse on the retail heavy exchange like Binance, as the order book got pretty tightly packed…
4 / 12
He pointed to how a dip like this is a small dip, which exaggerated by either an engine or operations failure.
5 / 12
He further stated, it was Binance that led the market in the dip, and specifically Binance futures.
6 / 12
In fact on Binance, the drop was so bad that you were able to pick up long-term futures at prices well below the spot market.
7 / 12
I think what we saw was a cascade of tightly wound retail positions on a weekend market, get toppled, but somewhere along the line, there was a matching book fail that caused…
8 / 12
That $63M position getting liquidated is what put the market in major jeopardy, but by that time there was already degraded performance issues connecting to Binance and spiking…
9 / 12
There were all sorts of arbitrage opportunities, weird flash sales, and mismatched options/futures last night, which big trade firms work really hard to capitalize on the…
10 / 12
Whenever the crypto market is high, people out there publish and cycle through various FUD messages trying to drop the market so they can gain on shorts.
11 / 12
Once we have a major market drop, we tend to go looking for a single obvious spark that caused the issue externally and can over correct to weak evidence just because it is an…
12 / 12
What you had here is typical weekend behavior, magnified by over leveraged new retail and a technical stress test failing leading to a perfect storm.
The Currency Analytics
Want the full story?