Leveraged Hedge Funds Rumors

The rumors are in the crypto space for hedge funds.

Unfortunately hedge funds in general can be in all asset classes.

https://www.forexlive.com/Cryptocurrency/speculation-that-a-…

That is just one of the rumors linked. There is a larger rumor that 65% of crypto hedge funds are insolvent.

While btc and eth are slightly drifting down the carnage has already happened.

Smart money is buying. That is the overwhelming sentiment for a few days now. But the hedge funds have to sell and prices as I said are drifting a bit lower. I have the sentiment numbers or buying/selling percentages on the Coinbase platform.

It is likely a lot more complicate than it might seem. The reason is that hedge funds in general are just about as likely to take a short position as a long position so while some hedge funds no doubt got clobbered the other have of them that were short likely did very well.

A big wildcard though would be if hedge funds start defaulting on there contracts to buy or sell. I don’t have a clue how that would work but it could get real ugly since that is likely not well regulated if it is regulated at all.

Watty,

Going by the fall in the major cryptos over the last couple of weeks it has already gotten ugly.