• Knock_Knock_Lemmy_In@lemmy.world
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    2 hours ago

    Crypto had it’s black monday.

    The fall may have been accelerated by portfolio insurance hedging (using computer-based models to buy or sell index futures in various stock market conditions) or a self-reinforcing contagion of fear

    Algorithms and feedback loops gummed up all the crypto exchanges and liquidity disappeared.

    The crypto tide went out and we all saw who wasn’t wearing any shorts.