BitMEX Reports $20B Loss from October Crash, Ending Easy Money Era for Crypto Market Makers
- Market Crash Impact: The crypto market crash from October 10 to 11 resulted in approximately $20 billion in losses, marking the most severe event in history for professional traders, forcing market makers to exit and reducing liquidity to its lowest levels since 2022.
- Hedging Strategy Collapse: Auto-deleveraging mechanisms unexpectedly closed hedged positions during the crash, exposing market makers to falling prices and significantly decreasing order book depth, which adversely affected overall market stability.
- Liquidity Crisis: The collapse of hedging strategies led liquidity providers to withdraw en masse, leaving crypto order books dangerously thin, further exacerbating market uncertainty and volatility.
- Industry Restructuring: Despite the turmoil, BitMEX argues that this shakeout may clear out fragile platforms, paving the way for more resilient exchanges and genuine innovation, thereby laying a foundation for future market stability.
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Technical Analysis for DEFI
Technical Sentiment Analysis for DeFi (DEFI) As of , DeFi (DEFI) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 6 technical signals, shows that 2 indicators are flashing buy, while 4 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for DEFI stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, DEFI is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
DeFi (DEFI) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 0.000197 | 0.000246 | 0.000294 | 0.000343 | 0.000391 | 0.00044 | 0.000488 |
| Fibonacci | 0.000246 | 0.000283 | 0.000306 | 0.000343 | 0.00038 | 0.000403 | 0.00044 |
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