Short version of what I think is happening in markets:

In tradfi there are two positioning imbalances. They are driving markets incl crypto. Positioning is almost always the driver outside of truly catastrophic news or truly outrageously good news. Either kind of news is absent.

Entrepreneur, Investor & Hockey Player. #bitcoin & #crypto since '13. Opinions, never investment advice. Beat Wizardry 7 before you were born. 🏳️‍🌈

The first imbalance is a hugely profitable and long lasting JPY carry trade. Funds take debt in JPY and invest in USD to pocket the interest rate differential and even the USD appreciation. Bonds are good collateral so leverage can be high.

Most positioning moves take 6-8 weeks in my experience and this one was very entrenched. So it may take longer. If it continues orderly it is not a problem but it causes insecurity and it acts an accelerant to any independent move in markets as unwinders need to sell collateral.