Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A7002417090112405504
After the #FTX #crash, here’s what you need to know – the #crypto #bubble is already #bursting: by Professor Carol Alexander: https://lnkd.in/eAmDzAiQ [Many of you in #Banking & #Finance and #HedgeFunds #RiskManagement know her as the #Market #Risk #Analysis and #Quantitative #Methods in #Finance Expert who has mentored many of the leaders at world-leading #Quant #HedgeFunds.]: https://lnkd.in/eFiz6SsK :
Following the #bankruptcy of one of the world’s largest #cryptocurrency #exchanges, FTX, the price of bitcoin (#BTC) has tumbled again. It is now about $16,500 – a far cry from the all-time high of $66,000 just a year ago. Why such a large drop in #value? It’s because of the highly toxic combination of an #exchange (an electronic platform for buying and selling) called #Binance, a #stablecoin (a crypto whose price is pegged 1:1 to the US #dollar or another “fiat” currency) called #tether, and the skilled professional #traders running #highfrequency #trading #HFT #algorithms. Unlike stocks, bitcoin can be traded on many different exchanges, but #Binance has more than 50% of the entire crypto market, and as a result it sets the price of bitcoin and other cryptocurrencies. In order to buy cryptocurrencies, #traders must convert #fiat #money, into a #stablecoin like tether. Bitcoin-tether has by far the largest volume of all products on #Binance, and because one dollar usually equals one tether, trading on bitcoin-tether sets the dollar #price of #bitcoin. But when bitcoin #crashes, so does the entire crypto ecosystem.
J.P. Morgan: Our Forthcoming #Financial #Risk #Management #Journal #Article on #HedgeFunds #Quant #Risk #Models: https://lnkd.in/ec99Zkd :
#Tulipmania: #Bitcoin Is Not Going Away… Nor have #Tulips gone away… but #Tulipmania has!: The #Dutch #tulip #bulb #market #bubble, also known as Tulipmania, was one of the most famous #market #bubbles and #crashes of all time. It occurred in Holland during the early to mid-1600s, when #speculation drove the #value of tulip bulbs to #extremes.: https://lnkd.in/ehZxbBKR : All #unbiased, #objective, #scientific #analyses we continue sharing over last 10-years right here demonstrates there is no difference between the two #market #manias.
#FTX: #Cryptocurrencies #Worth #Nothing: #SEC #Officials: This should be a wakeup call that, you know, what you thought was worth something is actually not worth anything… https://lnkd.in/g-Pqt-na
#Crypto #Coins #Worth #Nothing “They’re All #Equally #Risky” ‘#Ponzi #Scams’! https://lnkd.in/g2Y6isvS
#TV #Talking #Heads: When you hear ANYONE proclaiming ‘Bitcoin is Different’, ask penetrating questions to explicitly call out why Bitcoin is not a #ponzi #scheme just like any other #crypto #coin https://lnkd.in/gvXH_mBU
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