@Nirav_Finance
: Halving is coming, and liquidation risk tilts heavily toward Longs
Bittensor’s (TAO) liquidation heatmap shows a sharp imbalance, with Long-side liquidity far outweighing the Short side. If TAO slides to $243.50, nearly $17 million in Long positions could be wiped out. In contrast, a move up to $340 would only threaten around $5 million in Short liquidations.
Many traders are leaning Long ahead of TAO’s first halving event. According to Coinphoton, the halving is expected on December 14, reducing daily issuance from 7,200 TAO to 3,600 once the circulating supply hits 10.5 million TAO.
Grayscale noted that reduced supply increases scarcity, adding that Bitcoin’s halving cycles historically strengthened network value despite smaller rewards due to higher security and market capitalization. They believe TAO’s first halving marks a key milestone in the network’s maturation on the path toward its 21 million token cap.
The report has strengthened bullish sentiment and fueled Long positioning. However, without proper risk management, a “sell-the-news” reaction could trigger a wave of liquidations across the market.
