07 Jun 2023
Shorts already squeezed - what's next?In yesterday's Ahead of the Curve, We argued that the market overreacted to the Binance news. We're now firmly back to where we started the week, structurally and technically.
- OI reversion
- Feb high support
In yesterday's market update, we argued that a short squeeze was near. The squeeze happened in the evening. Let's drill into the current market state.Snippets from Tuesday's market report
Despite being in the spotlight yesterday, Binance activity was the key contributor to the surging open interest, seeing a daily growth of 8.3%. The growth was accompanied by funding rates melting down toward March lows, an indication that a bearish bias may be an overcrowded consensus trade for the short term."
Bitcoin is classified as a commodity. Americans can purchase BTC through a plethora of exchanges, exchange-traded funds, payment apps, and more. Binance.US is not a significant loss. Liquidity could consolidate further towards Coinbase and Kraken, but the market should not crash 5% on these developments.