Why does Everything feels so dead even though Bitcoin just hit a new ATH of $126k 2 days ago and is still trading above $120,000 ?
Itโs because no one has BTC.
Memecoin buyers got rugged,
futures traders got liquidated by MMs,
Utility tokens are making new lows,
Big projects are in extraction mode,
ETH is still below 2021.
So anything other than Bitcoin didnโt perform, and 99% of retail only hold Altcoins which are making new bottom every week.
So until ETH breaks $5,000 and liquidity flows into mid-low caps, you wonโt see any celebrations coz everyone is just tired and exhausted from waiting years and years.
HIGHEST WEEKLY CLOSE EVER FOR RUSSELL 2000 INDEX ๐จ
THIS IS PROBABLY THE BEST SIGNAL THAT RISK-ON ASSETS ARE ABOUT TO EXPLODE.
ALTSEASON IS COMING ๐
4 REASONS WHY CRYPTO MARKET IS DUMPING HARD THIS WEEK ๐จ
1) OPTIONS EXPIRY
TOMORROW, $23 BILLION IN BITCOIN AND ETHEREUM OPTIONS WILL EXPIRE.
THIS IS A QUARTERLY OPTIONS EXPIRATION AND OFTEN BRINGS HIGH VOLATILITY.
MAX PAIN PRICE FOR $BTC IS $110,000 AND $3,700 FOR $ETH.
USUALLY WHALES DRIVE PRICES TOWARDS MAX PAIN, AND THAT'S WHAT'S HAPPENING.
2) US GOVERNMENT SHUTDOWN
THE ODDS OF A US GOVERNMENT SHUTDOWN BY OCTOBER 1 IS NOW AT 67%.
IN THE PAST, US GOVERNMENT SHUTDOWNS HAVE RESULTED IN MARKET CORRECTION, AND THIS IS WHY PEOPLE ARE PANICKING.
3) STRONG ECONOMIC DATA
TODAY, Q2 GDP REVISED DATA CAME AT 3.8% VS. 3.3% EXPECTED.
GOOD ECONOMIC DATA IS BULLISH IN THE LONG TERM BUT BEARISH IN THE SHORT TERM.
THIS IS BECAUSE GOOD ECONOMIC DATA LOWERS THE CHANCES OF RATE CUTS.
4) EXCESSIVE LEVERAGE
IN THE PAST WEEK, RETAIL OPENED HIGH LEVERAGE POSITIONS DUE TO PERPS DEX HYPE.
AT ONE POINT, ALTS OPEN INTEREST WAS ALMOST 2X THAT OF BITCOIN.
AND RIGHT NOW, THOSE PEOPLE ARE GETTING LIQUIDATED, WHICH IS CAUSING A MARKET DUMP.
CONCLUSION
I THINK THIS IS A PERFECT SET-UP BY WHALES TO PANIC SELL YOUR COINS BEFORE Q4.
THEY STARTED SEPTEMBER IN A BULLISH WAY TO MAKE PEOPLE THINK THAT IT'LL BE UP-ONLY.
NOW WHALES ARE DUMPING, SO PEOPLE PANIC SELL BEFORE THE Q4 RALLY.