Not a Deleveraging?
On September 7th, over $3B of longs were liquidated in a 12 hour period. The vast majority of these liquidations occurred when BTC fell 16% in only 2 hours. This time around, a little over $1B worth of total positions were liquidated in 24 hours. That’s 1/3rd of the liquidations over double the time frame. Not bad relatively speaking.
The lack of deep, cascading liquidations implies this was either not a wipeout or the pain isn’t yet over. It’s possible that traders were just looking to de-risk some of their exposure going into tomorrow’s FOMC meeting. Global equities took a beating on today’s open, which could suggest that uncertainty over the Fed’s stance is the main reason for a risk-off environment across markets, amongst other things.