- Crypto Nutshell
- Posts
- 🥜 Don't fear the correction...
🥜 Don't fear the correction...
PLUS: Massive Liquidations
GM to all 26,076 of you. Crypto Nutshell #171 arrivin’ on time. 🧙 🥜
We’re the crypto newsletter that won't freeze you out like a queen hiding her icy powers from her kingdom... ❄️👸
What we’ve cooked up for you today…
🥊 SEC vs Binance continues
👻 Don’t fear the correction
💧 Huge amount of liquidations
💰 And more…
MARKET WATCH ⚖️
Prices as at 5:00am ET
Only the top 20 coins measured by market cap feature in this section
SEC VS BINANCE CONTINUES 🥊
BREAKING: The SEC is using now-unsealed court records to bolster its Binance lawsuit
Quick reminder - the SEC still has an active case against Binance. And they aren’t backing down.
The $4.3 billion settlement was for Binance’s case against the Department of Justice (DoJ).
In a Dec. 8 filing, the SEC asked the court to take note of the newly unsealed documents relating to Binance’s plea deal with the DoJ.
Binance has attempted to get this case dismissed.
But, the SEC believes these documents prove why the case should move forward.
John Reek Stark, former chief of the SEC’s enforcement division had this to say:
“Many of these Binance-related facts and admissions not only strengthen the SEC case but also reinforce the SEC’s arguments in opposition to the Binance’s current motion to dismiss the SEC action.”
Things aren’t looking great for Binance…
In their motion to dismiss, CZ and Binance argued they did not get “fair notice” that they were violating regulations.
However, in their DoJ plea deal, CZ admitted to “willfully” violating securities laws. 😮
Anyway, nothing to worry about as of yet. But we’ll keep you updated on any major developments with the case.
For the full article click here.
TOGETHER WITH FAST FOOD SECRETS CLUB 🍔
As you can probably tell, we love newsletters.
They’re the most efficient and no B.S way to stay informed on a wide array of topics.
But one newsletter is our personal favourite…
It’s kind of our dirty little secret. 🤫 (don’t tell anyone)
The newsletter? Fast Food Secrets Club
Every 2-3 days, they’ll send you a 3-minute read detailing:
Menu hacks & tips to get the best deals & bang for your buck 🍪
Secret recipes from the biggest fast food chains 🍟
Coupons, deals & specials at all your favourite restaurants 🌮
As always, they’re completely FREE.
Uppercut that subscribe button below & it will automatically add you to their list. You’re wallet will thank-you. (your waist line will not) 🫡
DON’T FEAR THE CORRECTION 👻
On-chain analyst, Will Clemente, pointed out something peculiar about Bitcoin’s recent price action.
The Bitcoin price has essentially doubled over the last 2 months.
Over that time, there’s been no meaningful pull backs or correction. It’s been pretty much straight up.
Will pointed out that this is highly unusual.
In a bull market, there will always be sharp corrections along the way. And they aren’t necessarily a bad thing. Corrections are actually positive. Here’s why:
Shakes out holders with weak hands 🙌
Clears the leverage in the system (more on this in the next section) 🧹
Allows stronger holders to accumulate more of the supply 💪🏻
This all culminates in a stronger foundation for an eventual move higher.
We have just seen Bitcoin move higher for 8 straight weeks in a row. (for the first time since 2017!)
When something like this happens, a huge amount of leverage builds up.
When there’s a large amount of leverage in the system, even small dips in price can cascade into much more violent moves down.
With so many positive catalysts on the horizon, any sharp corrections in price should be viewed as opportunities.
Our recommendation? Don’t use leverage.
We’ll leave you with this quote from the invest G.O.A.T himself:
“There’s only three ways a smart person can go broke: liquor, ladies & leverage.”
HUGE AMOUNT OF LIQUIDATIONS 💧
Following on from above, today we saw Bitcoin violently fall 6.5%.
At one point falling it’s price went below $41,000, before recovering to above $42,000.
5 days of gains wiped out. 😱
Funnily enough, this correction came immediately after popular crypto investor Scott Melker tweeted this out…
With corrections like these, huge liquidations follow.
But first, what do we mean by liquidations?
Liquidation events can occur when an investor takes on a leveraged position.
Here’s the quick definition of what a leveraged position is:
“Leverage allows traders to enter a position which is worth much more by committing only a little amount of money. The gains or losses are therefore, greatly magnified. When a user holds 5 BTC and trades with a 10x or 20x leverage, he will bear the risks of a 50 BTC or 100 BTC trade. This magnifies the risk for 10x or 20x, but at the same time, it also increased the potential gains for 10x or 20x.”
If the market moves in the opposite direction to what the trader is expecting, they will get liquidated. 😭
This means the exchange forcibly closes their position.
For a more detailed breakdown of what liquidation is click here.
To understand leverage more, click here.
Liquidation Heat-Map for the last 12 hours
Data from Coinglass reveals that there were over $350 million in liquidations over the last 12 hours.
Bitcoin and Ethereum dominated the liquidation heat-map:
Bitcoin liquidations: $99.53 million
Ethereum liquidations: $72.31 million
BUT, As we mentioned earlier, this is nothing to stress over.
Corrections like these are completely normal and healthy for the market.
The unusual thing was that we hadn’t seen a correction in 8 weeks.
We expect this current correction to be fairly shallow & short-lived.
Who would be selling now when the ETFs are halving are so close? 🤔 🧠
CRACKING CRYPTO 🥜
WHAT WE’RE READING ✍️
Want to get even smarter? Check these out.
p.s. all completely FREE
|
|
|
CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page.
Approximately, how many Ethereum tokens are currently staked? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: B) 34.3 million 🥳
Check out yesterdays newsletter for the full breakdown.
GET IN FRONT OF 26,000+ CRYPTO INVESTORS
Advertise with Crypto Nutshell to get your product or brand in front of the crème de la crème of crypto investors. Crypto Nutshell readers are high-income earners who are always looking for unique or interesting offers.
HOW DID WE DO? 🤷
We read every comment submitted in this poll and love to hear what you guys have to say. 😁 (bonus points for suggestions 🍪)
What did you think of today's Newsletter?don't worry, you won't hurt our feelings... 🥲 |
NUTCASE REVIEW OF THE DAY 🔍
DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.
Reply