Attention brothers! The atmosphere in the crypto market is obviously wrong this week, and there is a big move coming next week - the United States is going to hold a $125 billion treasury bond auction, and it also carries 40 billion corporate bonds. It just hit the shrinkage of the holiday trading session, and this combination is afraid that the market liquidity will be squeezed dry.
As a veteran who has been in the currency circle for almost eight years, today I will dismantle how deadly this matter is.
Explain to friends who haven't figured it out yet: the entire financial world is like a giant reservoir, and stocks, bonds, and digital currencies are all divided from this pool. Now that the pool has bottomed out, this wave of operations in the United States is equivalent to directly opening the floodgates to release floods - withdrawing a large sum of money to buy treasury bonds. As soon as the water level drops, all markets that rely on these funds will be thirsty, and volatility will soar instantly.
Some people may think: "This is a bad thing about traditional finance, what does it have to do with our digital currency?" "Wake up, friend! Now is no longer the era of savage growth in 2017. Large institutions have long regarded all kinds of assets as capital pools, and they will spend money wherever the income is determined. When bond yields become attractive, they do not hesitate to withdraw from the crypto market. Mainstream currency like ETH will bear the brunt of the impact.
What's even worse is the timing - the trading volume will shrink during the holidays, and if there is a liquidity draw at this time, the market depth will be terribly thin. A few large orders can smash the price out of the pit or pull out a false breakout.
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TokenomicsPolice
· 15h ago
Uh, no... The holiday shrinkage is uncomfortable enough, and this wave of blood draws? I'm afraid I'm going to see blood next week
View OriginalReply0
CantAffordPancake
· 15h ago
Damn, this wave of 125 billion is really ruthless, and the holidays are still here to cut leeks
View OriginalReply0
FloorSweeper
· 15h ago
ngl, this liquidity squeeze gonna separate the wheat from the chaff real quick. weak hands papering out while smart money accumulates... classic capitulation setup if you know what to look for.
Reply0
DegenGambler
· 16h ago
Damn, this is really coming, I have already felt it
Go to fucking holiday trading, this is the most ruthless smashing time
Wait and see which institutions will run away
Attention brothers! The atmosphere in the crypto market is obviously wrong this week, and there is a big move coming next week - the United States is going to hold a $125 billion treasury bond auction, and it also carries 40 billion corporate bonds. It just hit the shrinkage of the holiday trading session, and this combination is afraid that the market liquidity will be squeezed dry.
As a veteran who has been in the currency circle for almost eight years, today I will dismantle how deadly this matter is.
Explain to friends who haven't figured it out yet: the entire financial world is like a giant reservoir, and stocks, bonds, and digital currencies are all divided from this pool. Now that the pool has bottomed out, this wave of operations in the United States is equivalent to directly opening the floodgates to release floods - withdrawing a large sum of money to buy treasury bonds. As soon as the water level drops, all markets that rely on these funds will be thirsty, and volatility will soar instantly.
Some people may think: "This is a bad thing about traditional finance, what does it have to do with our digital currency?" "Wake up, friend! Now is no longer the era of savage growth in 2017. Large institutions have long regarded all kinds of assets as capital pools, and they will spend money wherever the income is determined. When bond yields become attractive, they do not hesitate to withdraw from the crypto market. Mainstream currency like ETH will bear the brunt of the impact.
What's even worse is the timing - the trading volume will shrink during the holidays, and if there is a liquidity draw at this time, the market depth will be terribly thin. A few large orders can smash the price out of the pit or pull out a false breakout.
How to deal with it? Three words: