Crypto market turns frothy 🫧

Over $500 million in crypto options positions were liquidated as the market retreated Friday morning.

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šŸ“ What you need to know

Crypto markets turned frothy Friday morning, with over $500 million in liquidations as billions of dollars worth of Bitcoin moved to exchanges.

Galaxy Digital shifted some $3.7 billion to exchanges, with other large Bitcoin holders following suit—creating mounting selling pressure on Bitcoin just weeks after it posted a new all-time high.

Despite the U.S. money supply climbing to a record high, experts told Decrypt that U.S. liquidity is ā€œpooled, not deployed,ā€ parked in money markets and short-duration Treasuries rather than risk-on assets. They urged caution in the short term, with volatility on the rise amid profit taking and ā€œincreasing liquidation risk" around leveraged positions.

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šŸ’¬ Quote of the Day

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ā€œWhen Washington works for industries like this, a handful of people get really rich, and the American people pay the price.ā€

U.S. Senator Elizabeth Warren (D-MA) takes aim at crypto industry lobbying

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