"Bitcoin entered the week with relatively calm trading, but markets did not have to wait long before a violent shock unfolded. Within just a few hours, a whale offloaded nearly 24,000 BTC-worth around $2.7 billion-causing prices to tumble from $117,400 to nearly $110,000. This sweeping move wiped out more than $550 million in leveraged long positions, exposing the fragility of liquidity over the weekend when the market's ability to absorb such large transactions is typically weaker."
"The Federal Reserve's latest warnings about the risk of stagflation-a toxic mix of weak growth and persistently high inflation-represent a paradigm shift for global markets. For Bitcoin, stagflation is a double-edged sword. On the one hand, it suppresses risk appetite in the short term, leading traders to dump high-beta assets like Bitcoin alongside tech stocks. On the other hand, the Fed's limited ability to cut rates aggressively-without reigniting inflation-removes the liquidity tailwinds that historically fueled Bitcoin's major bull runs."
Within hours, a single whale sold nearly 24,000 BTC (about $2.7 billion), driving Bitcoin from $117,400 to nearly $110,000 and liquidating over $550 million of leveraged long positions. The sale exposed fragile weekend liquidity and illustrated a liquidity sweep pattern that flushes excessive positioning by driving prices into vulnerable areas. Low liquidity during weekends amplified downside pressure and left retail traders disproportionately harmed when large funds reshaped prices. Concurrent Federal Reserve warnings about stagflation—weak growth with persistent inflation—lowered risk appetite and constrained the Fed's ability to cut rates, removing liquidity tailwinds that previously supported Bitcoin rallies and increasing near-term vulnerability.
Read at London Business News | Londonlovesbusiness.com
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