We're back with another collaborative piece with our friends at The Bitcoin Layer. We analyse the aftermath of this weekend's deleveraging event, and assess the liquidity picture for the rest of Oct.
@nik bhatia, I read both of your books and learnt a lot with layered money. Is there a book you would recommend to deepen my understanding. I heard about Capital Wars but I just wonder if this is not a too big jump in term of complexity. thanks
We’ve seen this movie before — gold had the same plot. Just instead of pirates and lasers, we’ve got bears in denial and liquidity fairies. The ending? Still moon. Just… bring a seatbelt this time — it’s the bumpy road to Valhalla edition.
James, while everyone was looking around for a cause to the Friday action, I came across this post on X, and a few posts in and around it. While I do not believe in coincidence the logic behind the initial snowball which turned into the avalanche seems plausible. Was wondering if you would take a quick look and see what you think? (The logic surrounds some issues over at Binance).
I think there is some validity to this, although I don't think it is THE cause. A component of it yes, but not the central issue. I believe it is called Auto Deleveraging (ADL), where perps basically require enough losers to pay the winners (zero sum game). Since Ethena was not included in that system, it means the winners were closed out sooner because there were not enough losers left to pay them.
My view on this, is primarily an observation that alts have no real bid side once the market makers back off. Everything on Binance was cross-margined, so when one token went down, they all went down.
@nik bhatia, I read both of your books and learnt a lot with layered money. Is there a book you would recommend to deepen my understanding. I heard about Capital Wars but I just wonder if this is not a too big jump in term of complexity. thanks in advance. And keep up the good work and collaboration. Love it.
Really appreciate the collaboration with The Bitcoin Layer. keep up the good work, I love it.
@nik bhatia, I read both of your books and learnt a lot with layered money. Is there a book you would recommend to deepen my understanding. I heard about Capital Wars but I just wonder if this is not a too big jump in term of complexity. thanks
"XPR" haha. How have I not heard this before?
Shows how much time I spend thinking about those coins...
We’ve seen this movie before — gold had the same plot. Just instead of pirates and lasers, we’ve got bears in denial and liquidity fairies. The ending? Still moon. Just… bring a seatbelt this time — it’s the bumpy road to Valhalla edition.
James, while everyone was looking around for a cause to the Friday action, I came across this post on X, and a few posts in and around it. While I do not believe in coincidence the logic behind the initial snowball which turned into the avalanche seems plausible. Was wondering if you would take a quick look and see what you think? (The logic surrounds some issues over at Binance).
https://x.com/ElonTrades/status/1977340254047649966
Thanks
I think there is some validity to this, although I don't think it is THE cause. A component of it yes, but not the central issue. I believe it is called Auto Deleveraging (ADL), where perps basically require enough losers to pay the winners (zero sum game). Since Ethena was not included in that system, it means the winners were closed out sooner because there were not enough losers left to pay them.
My view on this, is primarily an observation that alts have no real bid side once the market makers back off. Everything on Binance was cross-margined, so when one token went down, they all went down.
Something like this:
https://youtu.be/0sEYxJuJ3EM
Hahaha, more or less this, yeh.
Love this analysis and thank you
@nik bhatia, I read both of your books and learnt a lot with layered money. Is there a book you would recommend to deepen my understanding. I heard about Capital Wars but I just wonder if this is not a too big jump in term of complexity. thanks in advance. And keep up the good work and collaboration. Love it.