#ZachXBTExposesTheAxiomIncident In the past, during periods when real interest rates rose, it behaved like a "high beta" liquidity asset. Increasing funding costs and the unwinding of leveraged positions can lead to sharp pullbacks in digital assets.
Therefore, a major geopolitical crisis is not necessarily required for a downturn in the crypto markets. Tightening liquidity conditions alone can be sufficient.
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#ZachXBTExposesTheAxiomIncident In the past, during periods when real interest rates rose, it behaved like a "high beta" liquidity asset. Increasing funding costs and the unwinding of leveraged positions can lead to sharp pullbacks in digital assets.
Therefore, a major geopolitical crisis is not necessarily required for a downturn in the crypto markets. Tightening liquidity conditions alone can be sufficient.