Why did $BTC fall after the election? Mark Yusko says margin calls on 2x and 4x leveraged ETFs likely pushed traders to sell gold and Bitcoin, while bonds got a little bid as…
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Why did $BTC fall after the election? Mark Yusko says margin calls on 2x and 4x leveraged ETFs likely pushed traders to sell gold and Bitcoin, while bonds got a little bid as rates fell "If you're l…
Why did $BTC fall after the election? Mark Yusko says margin calls on 2x and 4x leveraged ETFs likely pushed traders to sell gold and Bitcoin, while bonds got a little bid as rates fell "If you're levered long, and the problem is they're not just levered long, they're in these 2x and 4x levered long ETFs and single-stock ETFs. 4 times levered on a 60-vol asset? Bad plan, bad plan." "When you get a margin call, and there were lots of margin calls right after the election, what do you sell? Well, you can't sell what just went down, so you sell what you can sell: gold, Bitcoin, bonds." "Bonds did the opposite. They had the Economist cover curse. The Economist literally, the day of the highest rate, said bonds are dead, and rates have gone down ever since. So bonds actually got a little bid." "So really, you got gold and Bitcoin to be sold to fund your margin call. And that's exactly what I think happened."
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