Odd Lots Roshun Patel on What Really Happened During the Crypto Market Crash
May 31, 2021
Roshun Patel, VP of Institutional Lending at Genesis, offers a deep dive into the recent crypto market crash. He explains the surprising factors behind the drastic price declines of major cryptocurrencies, emphasizing the pivotal role of market structure and institutional involvement. Patel also discusses the psychological challenges traders face during volatility and how institutions adapt their strategies. With insights on counterparty risks and the evolving landscape shaped by crypto brokerages, this discussion is a must-listen for anyone navigating the crypto world.
AI Snips
Chapters
Transcript
Episode notes
Sources of Stablecoin Yield
- Stablecoin yield in crypto comes from two sources: the basis trade and yield farming.
- Yield farming involves more complexity and risk, requiring active management and understanding of on-chain mechanics.
Miners' Impact on Sell-Off
- Miners' fiat obligations were likely not the primary cause of the recent sell-off.
- Their break-even prices are much lower than current spot prices, suggesting other factors at play.
Miners Hedging
- Miners actively use futures and options markets for hedging, especially after March 2020.
- This hedging activity can influence the relationship between spot and futures prices.