The Chad
The Chad 3 minutes reading from Bitcoin

Opinion: There Might Be No Reason for a Short-Term Short-Lived Short Squipe

1/ Seeing some weirdly bullish crypto takes…I think we can all agree that the broad markets are in macro bear cycle and we’re heading into or already are in a recession with a global USD shortage. Meanwhile BTC is maintaining an extremely high correlation to SPX with no pivot.

2/Global options markets p/c ratios & BTC L/S ratio aren’t reading overly bearish and in fact perps have flipped long for the time being so the idea of a massive short squeeze is pretty far out of sight.

3/Fiat exchange volume has been dwindling since Nov 21’and I can’t imagine any reason why that would change anytime soon with the recent events.

4/There seems to be liquidity issues on some major exchanges as seen here with Gemini with 21.85bps slippage for 100k sell orders and wide bid/ask spreads on most exchanges. Not exactly enticing for market participants.

BTC and ETH funding rates have also dropped significantly across all major exchanges.

This post is based on this twitter thread.


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