$2T Wiped Out in a Day, and Hedge Funds Are Now Forced Sellers 👀
When leveraged funds have to cut risk, they sell whatever is liquid, and that can include crypto.
🔹 Nasdaq-100 fell 6.4% on Thursday, erasing about $2.3T in value, while the VIX spiked 70%
🔹 Trigger: fears that Democratic midterm wins could slow the AI buildout
🔹 Amplifier: hedge fund deleveraging. Walleye Capital ($17B) lost 5.9% in October, its worst month since 2020, and is returning cash.
🔹 Morgan Stanley: October saw the biggest equity hedge fund de-risking in over a decade
🔹 Asia followed: KOSPI plunged as much as 8.8%, triggering a circuit breaker
🔹 Crypto felt it too, as some funds trimmed exposure and Fear & Greed dropped
⚠️ Rumors about Millennium and Lone Pine are unconfirmed. Analysts also say forced selling can take a few days to run its course.
💬 Does this deleveraging drag $BTC lower, or is it a shakeout before a bounce? Drop your call below 👇
#2TWipedOutHedgeFundsFaceLiquidation #Bitcoin #BTC #Crypto #BinanceSquare
When leveraged funds have to cut risk, they sell whatever is liquid, and that can include crypto.
🔹 Nasdaq-100 fell 6.4% on Thursday, erasing about $2.3T in value, while the VIX spiked 70%
🔹 Trigger: fears that Democratic midterm wins could slow the AI buildout
🔹 Amplifier: hedge fund deleveraging. Walleye Capital ($17B) lost 5.9% in October, its worst month since 2020, and is returning cash.
🔹 Morgan Stanley: October saw the biggest equity hedge fund de-risking in over a decade
🔹 Asia followed: KOSPI plunged as much as 8.8%, triggering a circuit breaker
🔹 Crypto felt it too, as some funds trimmed exposure and Fear & Greed dropped
⚠️ Rumors about Millennium and Lone Pine are unconfirmed. Analysts also say forced selling can take a few days to run its course.
💬 Does this deleveraging drag $BTC lower, or is it a shakeout before a bounce? Drop your call below 👇
#2TWipedOutHedgeFundsFaceLiquidation #Bitcoin #BTC #Crypto #BinanceSquare