Scott Melker discusses how bitcoin's (BTC-USD) latest rebound above $80,000 per token this week was swiftly erased following the massive tech sell-off that rocked Wall Street on Thursday.
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Bitcoin's big rebound after the midterms was entirely erased in the face of a massive tech and market route across the world. What is going on?
We're going to unpack that and everything else happening in crypto markets right now on the Daily Wolf. Let's go.
What is up everybody? Welcome to the Daily Wolf on Yahoo Finance. I am your host Scott Melker, also known as The Wolf of All Streets.
And yesterday was one of the worst days in recent memory for markets across the world. Of course, markets bounced this morning on good job numbers which we can get into, and once all of that leverage was liquidated, Asian markets still were suffering today,
uh hitting circuit breakers left and right as is tradition.
So, this reminds us once again. I said this on my YouTube show this morning as well. We do shows every single day. We talk about what the price is, we talk about where markets are likely going.
But as a famous saying there's two types of people in markets, those who are humble and those who will be humbled.
And this is one of those days where you will be humbled. You know, you do a story one day about how shorts were liquidated and the market is bouncing and then the next day you come back and all those longs are liquidated and the bounce is absolutely over.
So let's unpack a bit of what happened.
Bitcoin erases post-election gains as Wall Street's sell-off triggers over 1 billion in crypto liquidations. The sell-off triggered a wave of forced liquidations across crypto derivatives markets,
as total liquidations over the past 24 hours reached 1.09 billion affecting 211,000 traders.
First of all, you can use a stop loss and not get liquidated.
I I still don't understand. Liquidation is not a stop loss. You lose more if you're liquidated than even setting a stop loss slightly above your liquidation price.
By the way, those numbers as of 5:00 a.m. today were up to $1.26 billion. Of course, 1.12 billion of that total was in longs.
US Spot Bitcoin ETFs recorded 430.2 million in net outflows Thursday.
No surprise. Uh we know that they go up and down. Fidelity was about 200 million of that, BlackRock's iBit was about 100 million of that. So Monday through Thursday, we had net redemptions of 869.8 million.
