25.02.25 - Cryptos sell-off

In my last post on Market Insights yesterday, I expressed my surprise at the lack of a correction in cryptocurrencies following the recent theft incident. Yet, barely an hour after highlighting the potential for a deeper pullback, the sell-off began.

Markets: All cryptos deeply in red today, extending losses. Except XRP (Ripples) all major cryptos with negative performance year to date (YTD).

My View: As mentioned yesterday, the slum in crypto currencies does not come as surprise to me, triggered by investor behavior. All speculative positions, including crowded stocks, are loosing heavily ground. Therefore leveraged speculators are forced to close their bets to create enough margin.
I am closely monitoring the sell-off and focusing on its potential spillover effect on the stock market.

Disclosure of ETFMandate portfolio: No allocation in cryptos ever

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