Two Betas Making Alpha
Pirates of Finance
00:00
Cross-Sectional Versus Time-Momentum?
In crypto in particular, now that the derivatives markets like FTX are gone, it's a lot harder to trade derivatives. Shorting has always been pretty hard in crypto without the perpetual futures and all that sort of stuff. If you remove shorting from markets, it historically makes them more volatile. The thing about shorts is they become natural buyers in a sell-off. It's a stabilizing force. Similarly, when the market's too hot and people will short, it can push the market back down.
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