Crypto Bloodbath: $2B Liquidated, BMNR Faces $4B Loss, Options Bet on More Pain

$BTC $ETH $SOL $IBIT $ETHU $BMNR

Hello Traders,

The market moved higher today after New York Fed President John Williams said rate cuts are very much on the table in the near future. FedWatch odds for a December cut exploded from 27% yesterday to nearly 70% today (see picture below).

Yesterday was the polar opposite: everything got crushed after Powell’s November 20 speech, where he calmly repeated that inflation remains sticky, the 2% target isn’t locked in, and there’s zero rush to ease. Classic hawkish Powell.

The market is sensitive to monetary policy and one thing to remember is that most of the trading is done by algorithms. It’s not me or you moving the market in the magnitudes we see, but algorithms that trade based on keywords. You can also study those keywords, especially when there’s FOMC, and trade based off of that. It’s a common practice by futures traders and scalpers. You just need to be super fast.

We’ll break down SPX levels on Sunday. Right now, crypto is the main event — and it got obliterated.

Bitcoin and Ether both shed ~10% in 24 hours, with BTC dipping under $81K and ETH toward $2,600 before bouncing.

Altcoins took an even bigger beating, many down 20%+. The sell-off is rooted in the same liquidity crisis that started with October’s liquidation cascade and liquidity is still paper-thin so any pressure triggers massive moves. We saw close to $2 billion in liquidations across the crypto space just in one day.

Equities aren’t immune either: the Nasdaq 100 is now 9.4% off its October 31 high.

Thankfully, the Fed’s dovish tilt today helped BTC claw back above $84K, but the derivatives tell a much darker story and we’ll get into greater detail below.

In addition we’ll look at charts and key algo levels on BTC, ETH, SOL, as well as ETFs IBIT 0.00%↑ ETHU 0.00%↑ including options flow.

We’ll also talk about 4 billion unrealized losses of BitMine Immersion BMNR 0.00%↑ potential risks and see where’re some technical levels.

Let’s begin!