Prediction markets but with leverage. https://t.co/ggRxOM4kTr ...

The reason why I think hedging is so important is that okay if we have a spot position what it means okay maybe for bitcoin if we holding spot that means we are betting the market would go up that's why you have this long position already >> and uh for people out there they have a salary they have pension fund they have 401ks they are generally betting the market to go up only so in other words they are in a long position at the same time. So if your whole portfolio is betting the market to go up only you'r ...

Market Trends & Dynamics - Bitcoin's Open Interest experienced a significant decrease, dropping from $45 billion to $28 billion within a few days [1] - The $17 billion drop in Open Interest suggests a leverage washout, indicating a market correction rather than a bear market [1]

Market Sentiment - The industry observes a potential increase in instances of individuals losing their entire investment portfolio compared to previous market cycles [1] - The industry is exploring the impact of platforms like Hyperliquid and the broader perpetual decentralized exchange (perp dex) trend on leveraged crypto trading [1] Risk Management - The industry is questioning the prevalence of leverage usage in crypto trading before the rise of perp dex platforms [1]

Market Overview - The market's personality has shifted, becoming more complicated and idiosyncratic, with a focus on reasonable valuations rather than just thematic trends like AI [2][8] - Recent market action indicates a potential challenge to previous all-time highs, with broad-based participation across sectors [3][5] Sector Performance - Healthcare has emerged as a leading sector, performing well since August and being the best-performing sector this quarter, with an increase of over 10% this month [9][12] - Other strong sectors include materials and consumer discretionary, while technology has seen a decline in leadership [7][10] Investor Sentiment - Investors are currently seeking more attractive valuations and opportunities for beta, indicating a shift in focus from high-growth tech stocks to sectors with reasonable valuations [8][12] - The recent outflows from tech stocks have reached four-year extremes, suggesting a cautious approach among investors [10] Future Outlook - The market is setting up for a strong January, which is typically a favorable month for equities, while also looking ahead to 2026 [6] - Despite concerns about tech leverage, the overall sentiment remains positive, with expectations that tech will continue to lead in the coming year [19][26]

Value Creation - Knowledge should generate leverage for others, creating significant financial benefits [1] - The focus should be on knowledge that saves or makes money for others in multiples [1]

Market Analysis - The industry acknowledges Bitcoin's historical resilience but suggests the current situation presents potentially more significant downside risks compared to previous cycles [1] - The industry identifies leverage, ETFs, and Bitcoin treasury funds as key factors influencing the current market downturn, factors that were largely absent in prior cycles [2] - The industry highlights that the dollar value of losses is substantially greater due to the decline from a peak market cap of 126,000 [2]

Market Trends & Opportunities - Hyperliquid HIP-3 integration enabling 100x leverage long stocks like $GOOG will dominate in 2026 [1] - Successful scaling for individual names could lead to $HYPE trading 10x higher than its current value [1]

Retail Investor Activity - Retail investors have been exceptionally active in the markets this year, showing unprecedented levels of participation [2] - Individual investors are heavily invested in broad-based ETFs like SPY (Vanguard S&P 500 ETF) and gold [2] - Retail investors are sticking with the AI trade, despite institutional investors expressing doubts [3] Leverage and Risk - Retail investors are increasingly leveraging their investments [3] - Brokerage account leverage has surpassed $1.1 trillion, reaching record highs since the 1990s [4] - Leveraged ETFs have assets exceeding $140 billion [6] - Leveraged crypto trades have suffered losses recently [6][7] Market Performance and Sentiment - Individual investors who have been cautious are likely feeling positive about the market's performance, with the S&P 500 up 15% [8] - The US market has delivered blockbuster returns over the past two years, with a 15% increase this year [9][10] - Some investors are selling hot momentum stocks like Microstrategy, Robinhood, and Palantir, which are down double digits [11]

Liquidity Optimization - Amalgam's pools ensure capital is utilized where most valuable [1] - Liquidity is used for trading, lending, and leverage support simultaneously [1] Automated Capital Management - No complicated setup or active management required [1] - Capital earns from trading, lending, and leverage support at once [1] Dynamic Capital Allocation - Capital is lent when borrowing demand is high [2] - Capital is used for trades when volume spikes [2] - Capital earns funding when leveraged traders take positions [2]