Some trader is paying about $20 million in daily interest to short $MOB.
He has been borrowing all available $MOB to short it, adding to his position, and sending the interest rate for borrowing on margin to 3000% annualized.
You can make him blow up Gamestop style on FTX.
I have no idea who this trader is nor why is he running that short.
But it is wild.
Increased $MOB lending in the last hour brought the yield down from 3000% annualized to 200% annualized now.
Many asking me if that was the bottom and about entry points. I have no idea. I bought the dip last night, went max long this morning, and have had my balls stuck in my throat most of the day. I have no idea if that was the bottom. Do think prices will be much higher in a week.
What happened in the last 36 hours is simple. I was wrong, that's what happened. Why the crash. Many variables, not just one. Think options expiry had some impact. Doubt it was the dominant one. Macro correlations and risk sentiment had an impact. IMO the largest. It's debatable.
Above all, we had big sellers and little demand, after a big pump, just when that demand was expected. Stimmies didn't flow into crypto and Coinbase demand was weak. And that fake Dalio US ban talk. Guess had some impact, as there are many idiots out there that trade on nonsense.
Charts say bottom across asset classes since early yesterday. On crypto funding reset, curves flattened dramatically, and the macro should be supportive for the coming weeks.
Bottom is in translates into going all in, not into "wait for breakout". I'm slightly levered long positionally. Main plays since yesterday are $ETH (EIP 1559) and $UNI (V3).
$ETH is my largest position (which is rare), followed by $BTC. Expecting $ETH killers to lag.
DeFi alts not moving much yet, has me thinking that lots of cash may be being diverted to NFTs.
That's a problem for microcaps, as cash is limited.
How do traders make money with this kind of lagged analysis. Is this guy selling at $47200 because price failed to break $50000 overnight? Or is he indicating his followers should only long once $BTC above $50000?
Guess you are supposed to buy $BTC only after it breaks 50K and then target 52K lol. Zero alpha there. Trade like that and you will trade for peanuts and get chopped up.
Yesterday I tried to get my brother into crypto for the *fourth* time in the last year.
His response belongs in a book or case study about crypto and its barriers of entry.
It went like this 👇
Me: blockchain is driving a revolution. You would fit like a hand in a glove. It is extremely profitable and fascinating. You would find your niche and reap massive profits. Once again I offer you my guidance.
(He is an old school coder)
Him: I need to feel I understand how it works. And I find it very strange. Just saw on the news price dropped significantly, I don't feel safe. This would not happen with stocks, which I can study to understand, based on their products and financial statements.