Unlike retail-driven rallies, current inflows are structurally sticky. Crypto ETF products attract long-term allocators. Hedge funds and family offices using this bounce to rebalance and reduce dry powder.
Open interest in perpetual futures hit multi-month highs. Liquidation cascades are more severe when leverage is extreme. On August 27, a single 2% move could trigger $50M+ in forced closes.
Ethereum crossing $2,500 and Bitcoin breaking past $79,000 resistance activated algorithmic buys. Retail traders chasing momentum. Experienced traders trimming into strength at these levels.
For pension funds: hold through greed (mandate is long-term). For hedge funds: trim 10-20% of positions on strength. For prop traders: reduce leverage and widen stops. Size matters more than direction at extremes.
Read More →