The main reason for the double explosion of long and short is the serial liquidation caused by excessive market leverage. From CME data, we can see that the open interest of the contract has been at a high point in recent months. Once the market faces relatively violent fluctuations, serial liquidation may occur.

The market situation of long and short positions has intensified. Many people attribute it to the fact that the Bank of Japan "let go" to appease the market, causing the crypto markets such as $BTC to "dance with the same frequency"...

✨What do you think about this?

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Let me say first👇 (You don't need to say a lot of words, just be able to express your views clearly.)

1. The crypto market fluctuates. You think the German government sells coins, the US government transfers, and the Federal Reserve says it will cut interest rates. Japan, this young man, can't sit still... If you only look at this point, it's easy to be led by the nose. In fact, you should think more deeply about the back, such as the following.

2. The crypto market has become a multi-party market, with a large amount of hot money pouring into the market. Due to the lack of supervision and 7X24 global trading, in such an environment, large investors have an overwhelming advantage (this is the general environment, put here).

3. From the chain: In the past month, 358,000 BTC have been transferred to the permanent holder address (Figure 1). In July, the global spot ETF inflow was 53,000 BTC. This scale has reached an unprecedented height, and it is obvious that the market has been buying on dips.

4. From a micro perspective: In the past 48 hours, 100 wallets purchased 2,800 $BTC (Figure 2), which also shows that many people are buying on dips.

5. Hot money enters the market to make money. The fastest way to make money in the currency circle is contracts, which has now become a zero-sum game between retail investors and large investors.

Large investors play games with the market in these ways:

(1) Buying a large amount of coins at a low price in the spot market, creating a rising situation, making most people think that the price will continue to rise after breaking through 70,000, and inducing long positions;

(2) Using international hot spots to create expectations; for example, the Japanese yen interest rate hike on July 31, the financial market rose briefly, and even though BTC fell slightly at the time, many people still went long. Long positions rose from 60.09% on July 30 to 74% on August 4 (Figure 3), which is a very dangerous signal, so on August 5...

🤔 Due to limited space, the above is just my personal opinion. I believe that many experts in the square have their own opinions. Please click the forwarding button below to express your own opinions, and you can share the 200U quota allocated to me by Binance Square.

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