Interpretation of cryptocurrency market on Nov 21 2022
There was a wave of dips in the market over the weekend due to a costless sell-off by the hackers who stole the FTX wallet. 25,000 ETH liquidation dump impacted the market price. The hackers still own more than 200,000 ETH. How significant the impact can be, we do a simple analysis.
First, the hacker's funds are too easy to track, so getting out of the CEX is not convenient. Then they can only go to DEX. And a sell-off of such a large amount at no cost would endure a rather significant slippage under the AMM mechanism of a DEX. Users unfamiliar with on-chain interactions may need to be more familiar with this slippage. This is not a CEX. Measured in parts per million, parts per thousand, is the notion that it can slip away by more than 10% or even 50% directly because the liquidity pool is emptied. That portion of the loss would be split between the arbitrage traders and the scientists conducting the sandwich attack. It is a very inappropriate way to trade. If the hacker is eventually caught, this portion of the loss is both guilty and unrecoverable.
In addition, the probability that the hacker is an FTX insider is high. Otherwise, the timing is unlikely to be stuck precisely, as if it is determined that the bug must not be discovered. And FTX employees, in previous interviews, said many people bet their income and savings on FTX. This move is also likely just for employees to recover their interests. The follow-up operation shows that the funds were not transferred out of the market. It was just replaced with BTC.
Finally, it was also only because of the bear's end that market liquidity was already poor. 250,000 ETH was able to lead the entire market down. This amount only accounts for 0.02% of the ETH liquidity. Because 0.02% affects the remaining 99.98% has yet to recover the decline for a short time. It can only happen at the end of a freezing bear market.
The operation has spoken of a similar situation. The bottom is difficult to copy a sum to the lowest level. If you can lay out in the bottom range enough, the short-term hedge is a sure way to plunge. After all, the long-term exit target is also not in BTC back to 20,000, ETH back to 2,000, so low. The most unfortunate thing is not the lack of funds to continue to enter but improper risk control. Here the principal was compromised or even burst and fell on the last test of the bear market.
Instead of trying to guess what the market will do next and betting your precious capital on uncontrollable probabilities, you should use a strategy to cross this stage. Regardless of where the market can finally fall, you can earn your own planned part and have an excellent harvest.
In addition, the small fox wallet recently had the intention of the airdrop, temporarily not sure how the threshold, has yet to experience the relevant operation of friends. You can pay attention to the Institute's recent chain interaction video. The bear market in the air cast saves more, but also likely to be a lot of income.
First, the hacker's funds are too easy to track, so getting out of the CEX is not convenient. Then they can only go to DEX. And a sell-off of such a large amount at no cost would endure a rather significant slippage under the AMM mechanism of a DEX. Users unfamiliar with on-chain interactions may need to be more familiar with this slippage. This is not a CEX. Measured in parts per million, parts per thousand, is the notion that it can slip away by more than 10% or even 50% directly because the liquidity pool is emptied. That portion of the loss would be split between the arbitrage traders and the scientists conducting the sandwich attack. It is a very inappropriate way to trade. If the hacker is eventually caught, this portion of the loss is both guilty and unrecoverable.
In addition, the probability that the hacker is an FTX insider is high. Otherwise, the timing is unlikely to be stuck precisely, as if it is determined that the bug must not be discovered. And FTX employees, in previous interviews, said many people bet their income and savings on FTX. This move is also likely just for employees to recover their interests. The follow-up operation shows that the funds were not transferred out of the market. It was just replaced with BTC.
Finally, it was also only because of the bear's end that market liquidity was already poor. 250,000 ETH was able to lead the entire market down. This amount only accounts for 0.02% of the ETH liquidity. Because 0.02% affects the remaining 99.98% has yet to recover the decline for a short time. It can only happen at the end of a freezing bear market.
The operation has spoken of a similar situation. The bottom is difficult to copy a sum to the lowest level. If you can lay out in the bottom range enough, the short-term hedge is a sure way to plunge. After all, the long-term exit target is also not in BTC back to 20,000, ETH back to 2,000, so low. The most unfortunate thing is not the lack of funds to continue to enter but improper risk control. Here the principal was compromised or even burst and fell on the last test of the bear market.
Instead of trying to guess what the market will do next and betting your precious capital on uncontrollable probabilities, you should use a strategy to cross this stage. Regardless of where the market can finally fall, you can earn your own planned part and have an excellent harvest.
In addition, the small fox wallet recently had the intention of the airdrop, temporarily not sure how the threshold, has yet to experience the relevant operation of friends. You can pay attention to the Institute's recent chain interaction video. The bear market in the air cast saves more, but also likely to be a lot of income.
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