1 week ago
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Key Takeaways
- Wood: Bitcoin ETF holders stayed strong through the down cycle.
- January 10 flash crash: software glitch on Binance caused auto-deleveraging after tariff turmoil.
- Washout: $28-30 billion cleared through system, bottoming process underway.
- Four-year cycle: may be ameliorating as institutions learn, not necessarily ending.
Wood’s explanation of the January 10 flash crash is specific about cause and sequence. Tariff turmoil triggered the initial selling pressure. A software glitch on Binance then caused auto-deleveraging, where positions were liquidated automatically rather than through discretionary selling. Traders who believed they were hedged across two exchanges discovered their hedges did not function as intended and sustained significant losses. Wood is explicit that Binance did not cause the event and states she is on record saying so.
English (US)