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#Bitcoin 
over 32K now.
Messages flashing with people amazed at how price won't stop. Don't be surprised. This is how relatively illiquid markets like bitcoin's work. Once the 20K lid popped, price was supposed to go up violently, only slowed down by temporary leverage buildups.
over 32K now. Messages flashing with people amazed at how price won't stop. Don't be surprised. This is how relatively illiquid markets like bitcoin's work. Once the 20K lid popped, price was supposed to go up violently, only slowed down by temporary leverage buildups.
And bitcoin is being driven by spot demand, something that can be appreciated by how spot price leads perpetuals. The Bitmex perpetual - Coinbase spot basis is negative. Funding is flat. And the quarterly annualized futures basis have come off across exchanges and are below 20%.
Those metrics are proxies for leverage buildup. The time to be concerned is when they get stretched. Last time the futures basis were unsustainably stretched was on the 27th.
Can think of bitcoin as an indestructible truck prone to accidents. The market is the driver. For as long as the truck is going at 65 miles per hour or under, odds of crashing are very low.
But sometimes leveraged traders push the speed above 100 miles, and when that happens an accident becomes likely. The truck is then vulnerable. The more time it spends over 100, the higher the odds of a crash. But the market can also slow the truck down without a major accident.
Some may remember this from 2019. That analysis has always been in play. Because this is #bitcoin . https://twitter.com/krugermacro/status/1162657197744152576?s=20
. https://twitter.com/krugermacro/status/1162657197744152576?s=20
The bitcoin truck is moving forward for fundamental reasons. Spot driven. This is a big picture macro play. Expect this to continue. Leverage sometimes pushes speed above 65. Funding and basis are a proxy for leverage . Quarterly basis > 20% ~ speed > 65. https://twitter.com/Hanakookie1/status/1345414352728428548?s=20
