Crypto Whale demarket go shake market, make Bitcoin traders wey use leverage lose money too much
Crypto whales don dey do wetin dem dey call 'liquidation hunting' well well now. Na strategy wey big big traders dey use to push di price of assets down on purpose, so dat dem go fit force pipu wey borrow money to trade Bitcoin and oda crypto to sell dia positions. For example, one big whale wey dem call James Wynn lose $99.3 million for Bitcoin when di price just fall small below $105,000. Dis kain loss na one of di biggest for dis cycle, and e happen around di same time wey plenty pipu wey dey use high leverage for different crypto exchanges also lose dia money. Wetin dem whales dey do na say dem dey look for wetin dem call 'order book imbalances' and dem dey target prices wey get plenty stop-loss orders and places where pipu go lose dia money if di price reach dere. Dem dey make money from dis forced selling, and e dey make di market even more shakara. Data don show say di number of open positions first increase, then e just fall drastically, meaning plenty pipu wey borrow money don lose dia trade. Also, for di blockchain, we see say less pipu wey just dey hold crypto for short time dey, and more pipu dey hold am for long time, meaning less pipu dey take big risks. All dis things show say trading with borrowed money get big risk, and di market dey become more unstable because of wetin dis whales dey do. So, crypto traders suppose dey careful, know say di market fit shake well well, and prices fit fall suddenly, as dis whales dey use pipu wey no too strong for di market to their advantage.
Bearish
Di news dem tok say say say wey big whales dem don dey hunt liquidations too much, wey make Bitcoin do one of im biggest liquidations recently and clear out plenty leveraged positions. The way open interest drop well well and short-term holders reduce show say traders no wan take risk with speculative positions again, wey mean say market fit weak for short time and price fit even drop more. Even if long-term holders fit make am stable later, for now, market dey very volatile and fit get more corrections as whales dey use market weakness against am. All dis one show say Bitcoin go fall for now, especially with leveraged trading.