A prime crypto broker blames margin calls on non-crypto assets for the electric current crypto marketplace slide.

Marc Bhargava, co-founder of Tagomi (which has recently joined the Libra Clan), shared his explanation of the electric current market downturn with Cointelegraph. Since Tagomi is continued with ten of the biggest exchanges and some of the biggest crypto traders, it enjoys a rooftop view of the market place. Here'due south how the co-founder contextualizes the recent market downturn

Bitcoin is a risk-on nugget

Bhargava believes that crypto is not a safe haven asset, despite others saying the opposite:

"BTC and crypto is currently a risk-on asset, more similar to tech and VC than gold, and so with oil prices and the full general stock marketplace tanking, the latter more due to coronavirus and the global slowdown associated with it, it's not surprising that there are multiple sellers of crypto right at present."

Campbell Harvey, a professor of international business at Duke recently shared a similar opinion with Cointelegraph:

"Now, if these cryptos were prophylactic havens, and so you would expect maybe no modify in their value or perhaps even an increase in value. But that's definitely non what we've seen. The cryptos got battered and dropped by more 10%. So that suggests to me, in a particular situation of great stress where people are realizing that there's systemic chance unfolding, the stock market drops as expected, people flee to safe assets, but they didn't flee to cryptos, they fled to the U.S. 10-year bond."

Margin calls on not-crypto assets to arraign for the slump

Bhargava suggests that bitcoin has the potential to become a "counter-cyclical" asset, only "that'southward only non where it is yet in terms of its development, primarily because larger asset managers and macro traders don't trade/ain BTC even so, and and then yous don't run across information technology independent from disinterestedness market movements like you do for gold."

Some other reason for this massive liquidation could be due to "folks getting margin called on other non-crypto assets."

Some analysts believe that the current downturn is acquired by something more trivial: PlusToken scammers liquidating their boodle.

We take been reminded over again that crypto markets don't exist in isolation from the residuum of the earth.