The Micro Versus The Macro

Given the recent volatility over the last few hours, we wanted to quickly send this update ahead of the recording of our weekly conference call to detail what's taken place and to discuss our approach to lower time frames right now.

In yesterday's note, we outlined the following:

The most likely selling event would be driven by derivative volatility through a cascading of long liquidation forced selling pressure. There is certainly a possibility this could take place, with funding still pointing to bullish positioning from speculators, but it looks unlikely with the strength of spot flows supporting the market right now.

This is primarily where we've seen the selling pressure take place, with over $750M of liquidations experienced over the last 24 hours. As much as on-chain spot-buying drives long-term cycles, the derivative markets ultimately get the final say for lower time frames.