With rising margin borrowing costs for leveraged crypto trading, due to rising Treasury yields, will cause a liquidity squeeze into the crypto market. I see higher volatility ahead, and larger gap spreads between buying and selling.
Bitcoin cannot escape the macro events around it. Gap spreads can go in either direction, but you need to ask yourself: is this a "risk on" or "risk off" macro environment currently?
Liquidity squeeze with rising yields
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Posted by Background-Day-4957