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Matrixport: ETH Leveraged Longs Face Liquidation Risk Due to Declining Trading Volume and Funding Costs
Summary: Matrixport has released a market analysis stating that Ethereum treasury-like companies have recently become quiet, with their Net Asset Value (NAV) hovering around 1 - indicating investors are unwilling to pay a premium for these stocks. Even Bitcoin treasury-like companies have seen a significant drop in net worth. Despite positive US inflation data this week ...
Matrixport has released a market analysis stating that Ethereum treasury-like companies have recently become quiet, with their Net Asset Value (NAV) hovering around 1 - indicating investors are unwilling to pay a premium for these stocks. Even Bitcoin treasury-like companies have seen a significant drop in net worth. Despite positive US inflation data this week and the upcoming Federal Reserve interest rate meeting next week potentially bringing some good news to the crypto market, Ethereum's trading volume has plummeted from $122 billion to just $410 billion, with futures open interest contracts showing little decline. This divergence explains why ETH prices are still holding up, but with declining trading volume, some traders holding leveraged long positions may soon be forced to liquidate - especially as high funding costs increase holding costs.
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Link: Matrixport: ETH Leveraged Longs Face Liquidation Risk Due to Declining Trading Volume and Funding Costs [Copy]
