Crypto Market Woes Explored By Miles Deutscher

• Crypto Analyst Miles Deutscher weighs in on the major market sell-off.
• Deutscher believes that the Mt. Gox BTC unlock and Shanghai ETH unlock might be the cause.
• Traders de-risking their portfolios has led to an increase in liquidations.

The crypto market has been on a downward spiral over the past few days, with major crypto players such as Bitcoin, Ethereum, and Ripple experiencing drops in value of 5%, 6%, and 5%, respectively. In light of this, crypto analyst Miles Deutscher took to Twitter to analyze the potential reasons behind the market sell-off.

Crypto Headwinds are beginning to build up and could explain the recent sell-off. • Mt. Gox $BTC unlock• Silvergate• Shanghai $ETH unlock• Hot CPI (50bps now a real possibility)• Asia selling open• Mass liquidations• Stock Market weakness (futures orange)

— Miles Deutscher (@milesdeutscher) March 3, 2023

Deutscher believes that the scheduled unlock of Bitcoin by the defunct crypto exchange Mt. Gox and the sell-off by ETH miners in Shanghai have resulted in traders and owners being spooked. The scheduled distribution of the unlocked Bitcoin is set to take place on the 10th of March.

The Shanghai ETH miners have been liquidating their ETH in large amounts in order to minimize the losses incurred due to the recent ETH price crash. This, coupled with traders de-risking their portfolios, has led to a massive liquidation of long positions, with long positions reaching a three week high.

The crypto market has recently seen a huge sell-off due to the unlock of 17.5 million staked Ether, which is estimated to be worth almost $29 billion. This has caused unease among crypto investors, as they are worried that long-time stakers will choose to unlock their assets, flooding the markets with the Ether. However, investment firms have stated their opinion that the consequences of the unlock might not be as severe as expected.

Strategists at UBS, a leading investment banking company, have recently stated that the worries surrounding Mt. Gox’s BTC payouts are being overblown since the biggest creditors have opted for crypto payouts instead of fiat. Meanwhile, asset management firms such as Bernstein and Shanghai Upgrade have expressed that the unlock is unlikely to cause any selling pressure and have a negative impact on ETH.

Data from Coinglass shows that traders have been attempting to capitalize on this trend. At the time of writing, Bitcoin had $73 million worth of active long positions and $4 worth of shorts. ETH had similar metrics with $40 million worth of longs and $1.58 million worth of shorts.

The post Crypto Market Sell-Off Examined By Analyst was first published on Coin Edition.

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