Navigating Nukes
Crypto is no stranger to a liquidation cascade like the one we saw last weekend. There are uncertainties going forward, but there is also opportunity.
Preview
TLDR
- There were few places to hide over the last week as both traditional markets and crypto markets were rocked by massive volatility.
- Crypto futures saw over $1b in futures liquidations (possibly closer to $2b), but TOTAL3 showed relative strength to BTC and ETH. However, this is likely because alts had been selling off in the weeks prior to this volatility event.
- We look at two options for longs which showed great strength during and immediately following the wipeout.
- V-shaped recoveries are not the norm, there is no need to rush into new positions. U.S. spot ETFs represent a new chapter for crypto, there will be more opportunities in the future.
