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It's tautological, but mostly from poor construction. The crashes like this have a lot of forced selling, both from margin calls and LP/depositor redemptions. Two factors contributing to this are algorithmic leverage (DeFi and otherwise), and the combination of high volatility and decent liquidity meaning mark-to-market is both very easy and very painful.

"HODLer" as a term is not clearly defined, but usually refers to the sort of off-exchange spot position that allows ignoring moves like this. High-uncertainty events like country bans and network attacks drive people like that to sell, but this current crash is basically purely liquidity related and in line with similar assets. Selling is driven mostly by short-term expectations, not long-term viability.




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