by Teeka Tiwari
Casey Research
From March 11–12, bitcoin dropped a stunning 47%.
At the same time, the stock market was in the middle of a 37% free fall… and even gold dropped 12%. It seemed everything was correlated to stocks.
My inbox was full of emails from subscribers, worried that bitcoin was not the uncorrelated hedge they thought it was. At the time, I explained that bitcoin was down for its own reasons that had nothing to do with stocks.
After the dust cleared, we eventually found out a series of massive margin calls was triggered on a bitcoin trading platform. The platform offers up to 100-to-1 margin. It’s estimated about $700 million in bitcoin was forcibly liquidated.