A lot of people are surprised that equities and cryptos are falling at the same time.
But this fits perfectly with my thesis that I've been talking about on discord for a while.
Exchange-crypto (as opposed to crypto that is used for real transactions) are treated as a highly speculative asset class for trading.
The big money trading on BTC futures (or whatever) are not ancaps in their basement. They are financial institutions with play money trying to generate a point of alpha.
The consequence of this is that when their equity positions get liquidated and the margin calls start coming, what are they going to sell to raise cash? It's going to be that crypto portfolio.
I have no proof at all to support this, but it's just what makes sense to me.
Posted via Steemleo