The crypto ecosystem is one of the highest risky markets in the existing financial system. Though the other markets follow the weekdays to open and close the market, crypto never stops operating.
Another reason we acknowledge our market as too risky is that most of the investors / traders in crypto approach it as a place where they can take excessive risks with long and shorts and adopt the dream of getting rich quickly. Thus, both the abnormal risk appetite and the ease of unreasonable long / short opportunities ( up to 200x).
In Crypto Twitter, the meeting point of Crypto Degenz, the enthusiasts see the possibility of Bitcoin ETFs of more than 90& in the upcoming week. As a result of the high expectations, there is a huge tendency to increase the leverage they prefer and the positions are on the side of Long & Call options.
Liqudation Hunt Has Begun
The first wave of liquidation hit 3 days ago when $400M Crypto Funds got liquidated with a crash. The primary reason for this sharp drop was also not very strong because it was just based on a prediction of Matrixport analysis over the possibility of Bitcoin ETFs being rejected / postponed.
The very first hunt in the recent days hit both Bitcoin and altcoins with a big and long red candle. The candles low price even hit below 200 - day moving averages on several charts. Yet, the market was able to gain some power to compensate for the losses.
The next dump was exclusively on altcoins with the idea that the ETF has a 50% possibility of getting rejected or approved but staying in altcoins might double the risks.
As a vivid example of the dump in the altcoins, OP / USDT chart clearly shows the situation.
Though the chart of Bitcoin has a deep red candle, the charts of others have another leg of the downtrend that reached up to 10% like the former one. So, we can talk about the slight shift from alts to Bitcoin as we get closer to the big time of ETF decision.
Nothing Left But For Announcement by the SEC
According to Reuters, the applicants already did whatever is asked to be done by the SEC. However, there are some parts to be revised as the SEC commission further requested.
The SEC sought what three issuers described as "minor" changes. Some asset managers are expected to amend their filings to disclose fees or identities of the market-makers for their ETFs. Those updates are due by 8 a.m. ET (1300 GMT) on Monday and could become public that day, sources familiar with the process said.
The expectation in the market is to see the declaration of ETFs on Monday. However, there are also some rumors that the SEC may wait for even the last minutes of the deadline to announce it. The big day also comes with big risks for the investors. In case of a rejection or a decision to postpone it, the market will turn purely red in a couple of minutes.
On the other hand, the risk / reward ratio might be worth jumping into it as this has turned into a matter of life or death in the eyes of many investors. Personally, I'm into it 🔥
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