Crypto Collapse: Irrelevant Or ‘Foreshock’ To A Coming Earthquake?
I've said it so many times over the past few days the joke is probably old already: Inflation was all that mattered to the financial media until cryptocurrencies crashed.
When Bitcoin lost a third of its "value" in matter of hours last Wednesday (figure below), editors and journalists took one hand off the steering wheel, leaned over, unfastened inflation's seatbelt, pushed open the passenger door and shoved the story out into the middle of the highway to make room for crypto, which has been ri
You a playa, or ya wanna be a playa, then don’t play more than ya can pay. If ya win, celebrate. Otherwise, chalk it off to gambling goofing.
With an implied VIX reading currently at 130, Bitcoin more closely resembles toilet paper than an alternative to fiat currency.
Crypto seeing massive deleveraging is yes I think an example of how much institutional leverage is out there. Surely these institutions did not just discover leverage when they entered crypto… so exactly how much should we worry about that dead guy (archegos) in the corner and all these dead canaries (cryptos)? I mean the lack of supply of lumber, polymer, circuit boards, copper… etc cannot possibly negatively affect stock prices resulting in an insane deleveraging in the main pool right? Right?!
And the follow up… what happens when the credit for zombie corps dries up as their ability to sell enough product to meet their debt service ends?
The Fire Sale danger sign should be reading Extreme.