The crypto market has seen a surge in volatility, with Bitcoin and Ethereum facing extreme price swings and flash crashes. A crypto analyst known as 'The Kobeissi Letter' has revealed that over $300 billion has been removed from the market in just 24 hours due to these flash crashes. The analyst attributes the crashes to a growing divide between institutional and retail investors, with hedge funds increasingly taking short positions on Ethereum. This polarization has created "air pockets" in liquidity, leading to cascading liquidations and market instability. The Fear and Greed Index has fallen to extreme fear, highlighting the unpredictability of the market. Political and corporate influences, such as Eric Trump publicly supporting buying Bitcoin and Ethereum, have also impacted the market. While volatility and instability continue, MicroStrategy is accumulating Bitcoin, contributing to the polarization of the asset.



Other News from Today