Traders Cite Hedge-Fund Liquidations as a Driver of U.S. Stock Selloff
Photo: TokenPost
Thursday’s steep decline in U.S. stocks may have been driven by hedge funds unwinding positions, a development that could matter to crypto markets if forced selling spreads across risk assets. Traders and analysts have pointed to hedge-fund liquidations, rather than weaker corporate fundamentals, as the main explanation for the move. Noel Smith, co-chief investment officer at Kai Asset Management, said a decline of this scale without major market news suggested forced unwinds. Market expectations include several funds being wound down entirely and investment teams inside multi-strategy firms being made to close positions.
Source: TokenPost
