As brokers and OTCs are levelling out their books for the end of the year, 94k is being put through a stress test.
Discussion
Interesting
it is. See, an OTC desk for example who just sold a bunch of BTC to an institution is "short" Bitcoin. They want to balance their book before the markets close. The same goes if they're long Bitcoin by having more BTC on their book than they should have dollar. As for brokers, they're unlikely to leave open positions on the markets unattended. Add their end-of-year reporting to the mix and you got the full picture.
It's the same every year and one reason why I stopped stealing sats for a few days. I'll get back to that in the new year once everyone else returns to their trading desks.
‚stealing sats‘ 💥🥷😹
Thank you for that explanation. That is fascinating.
I wasn’t sure why this happened but every year does seem to be the same exact thing. Everybody gets out takes a couple weeks off to get back into it in January so why is everyone freaking out?
They're not freaking out. they're closing their books for the end of the year and they're just balancing their positions. Also, in case of an unexpected economic event, they're protecting their capital. Like a sudden economic shutdown for example.