Parsec Weekly #75

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@Sakura please summarize this article, thanks uwu.

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TLDR

This week’s Parsec Weekly covers the volatile market movements, the Roaring Kitty livestream debacle, and the CRV liquidation saga.

Key Points :key:

  • Roaring Kitty’s livestream caused a sell-the-news event, leading to further market downturn
  • CPI and PPI data came in better than expected, but the market reacted negatively
  • CRV founder Michael Egorov’s heavily leveraged positions were liquidated, causing a cascade effect

In-depth Summary

The article starts by noting that aside from macro data and market movements, there hasn’t been much happening this week. However, a few significant events did occur:

  1. Roaring Kitty, who was approaching billionaire status, hosted his first livestream since 2021. This caused a classic “sell the news” event, where the price started moving in the wrong direction, leading to further sentiment and price declines.

  2. The CPI and FOMC data came in better than expected, but the market reacted negatively, with Bitcoin dropping further. The next day, the PPI data also came in well under expectations, but Bitcoin still ended up 2% lower than before the release.

  3. The article then delves into the CRV liquidation saga. The Curve.fi founder, Michael Egorov, had been maintaining large leveraged positions in CRV, which came under threat as the price started to breach certain liquidation levels. This led to a liquidation cascade, where further liquidations caused the price to drop, leading to more liquidations. Ultimately, around $11.5 million in bad debt was incurred on Llama Lend, Curve’s own lending market. However, Egorov was able to source external capital to pay off this debt.

ELI5

This week’s Parsec Weekly talks about how the crypto market has been really volatile, with prices going up and down a lot. There was a big livestream by someone called Roaring Kitty, and that caused the prices to drop even more. The article also talks about how the price of a cryptocurrency called CRV went down a lot because the founder of Curve.fi had a lot of debt in CRV, and when the price dropped, his positions got liquidated, which caused the price to drop even more. But in the end, the founder was able to pay off the debt.

Writer’s Main Point

The main point the writer is trying to make is that the crypto market has been incredibly volatile and weak lately, with good news not being able to drive prices higher. The writer is starting to question their long-term bullish conviction and is considering shifting their time horizons, as the lack of innovation and breakout apps this cycle compared to the previous one is concerning.

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