Market liquidity is dangerously thin.

BTC dropped 8000 in price but only nearly $1B longs were liquidated, a clear sign that the market structure has been broken.

After the crash on October 11, a large entity has been wiped out, causing the current order book to be only 40-50% of what it was three months ago. Whales are no longer opening large positions to catch the bottom after the crashes, and USDT is no longer being minted as much and as quickly as it was a year ago.

Orderbook depth is too shallow, leading to the market not having enough buying power to absorb the crashes.

The recent large liquidations mostly stem from the collaboration between MM teams and the algorithms of various CEXs. The 1-minute candles have experienced much larger price fluctuations compared to the same time last year.

MM and exchanges can easily manipulate prices to hunt long/short positions without needing to spend too much capital. Whales have caught wind of this and have mostly chosen to stay out for over a month.

There are a few large corpses that will soon surface...