Why does leverage make selloffs feel worse than fundamentals?
Replied byFred Thiel
Chairman and CEO, MARA Holdings at MARA Holdings
Niche: Cryptocurrency, AI, Technology, Finance
Revenue: $1M+/month
Location: USA
Started: 2010
In a risk off environment, Bitcoin operates a lot like equity in portfolios today. Then you see layered strategies and highly leveraged positions unwind. People pile into short trades on perpetual markets, and when the move goes against them, forced unwinds add more selling pressure on top of everything.
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