Black Wednesday

MAY 19, 2021 • 2 Min Read

Ashwath Balakrishnan + 1 other

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Data Digest

  • Over $2 billion of BTC exposure liquidated today
  • Deribit futures trade at -75% basis
  • Gas hits 1700 gwei
  • BTC exchange inflows at highest level since March 2020

Key Takeaways

  • May hasn’t been kind to BTC bulls, but today was by far the worst day for the market since March 2020.
  • Over $2 billion in BTC positions — longs and shorts — were liquidated amidst today’s choppy market. Over $10 billion were liquidated across crypto perps and futures.

Key Takeaways

  • As demand dried across BTC markets, the annualize basis for one month futures briefly traded at a massive discount. Deribit had the worst reaction, with basis reaching -75%.
  • This was a result of heavy selling across futures market causing futures to go into backwardation (trade at a discount to spot).

Key Takeaways

  • Gas eclipsed 2000 gwei briefly and was between 1500 and 1700 gwei for about an hour.
  • As markets crashed, DeFi liquidation opportunities popped up in every nook in corner, giving way to gas wars amongst liquidators and arbitrageurs.

Key Takeaways

  • BTC inflow to exchanges exceeded 20,000 coins in just an hour today. This is the highest daily and hourly inflow since Black Thursday.
  • While this isn’t a certain signal of a bottom, it’s a sign of capitulation and shaking out “weak hands.”

 

Notable Tweets

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Ashwath Balakrishnan + 1 other