The crypto market faces another brutal dip, is it another correction?
A hedge fund manager believes this is caused by over shorting Bitcoin futures.
This phenomenon will likely trigger a gamma squeeze towards a new Bitcoin ATH.
As the crypto market faces another brutal dip, traders and analysts scramble to find the cause of the latest market dump. Many find this to be another unexpected correction, while one explains how hedge funds are the cause for this dip.
James Lavish explains how hedge funds are shorting #Bitcoin and why this could lead to a gamma squeeze to $75K. pic.twitter.com/23igFZlDbH
— The ₿itcoin Therapist (@TheBTCTherapist) June 18, 2024
As we can see from the video above, James Lavish, a reputed hedge fund manager, walks us through how hedge funds are shorting Bitcoin (BTC). He explains how the trade works, he says when futures are shorted 10% gains are made.
By taking this capital, users can buy Bitcoin meaning they are hedged. If Bitcoin goes up or down this doesn’t change their gains. However with Bitcoin ETFs one cannot borrow against it. Doing so will create debt as it creates paper dollars and not paper Bitcoins.
He says some hedge funds are over shorting the future and are taking in more perpetual interests and under buying the spot. Futures are being bought during the day and they are settling for Spots.
So the ones shorting the futures could get into a situation where a gamma squeeze can occur. Thus, a very rapid blast towards a $75,000 Bitcoin gamma squeeze could occur soon if the buying pressure explodes.
If this massive Bitcoin rally takes place, not only will Bitcoin (BTC) set a new ATH, but altcoins will follow this rally as well. If altcoins follow suit, it will likely usher in the long awaited altseason as well.
Altseason is inevitable, and all u need to make ur first million is:• Learn to identify 'depression' and 'shakeout' stage (it's right now, and it's the best time to buy)• 1 year of a bull run• $1,000+Here's how to find alts that will make 1000x pic.twitter.com/scFcfPB6jz
— 𝗰𝘆𝗰𝗹𝗼𝗽 (@nobrainflip) June 17, 2024
Traders say altseason in inevitable and based on the altcoin cycle in every bitcoin cycle, we are currently in the phase after hope which is the shakeout phase. This is where market makers try to shake out investors just before the arrival of the golden bull run.
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The post Golden Bull Run Start Trigger Revealed, God Spike Loading for $75,000 BTC Price, Altcoins Will Follow appeared first on Crypto News Land.