When everything is selling off at once. it's not necessarily just where the money is going, but who is being forced to sell.
Leverage unwinds, margin calls hit, and even strong assets get sold to raise liquidity.
The real test is whether this is temporary deleveraging or a deeper liquidity problem.
That distinction matters more than the red candles.
真老陌
Gold is crashing!
Stocks are crashing!
Bitcoin is crashing!
Silver is crashing!
Even websites are starting to crash!
Everything is falling, so where exactly is the money going? 😂
The answer might be: cash, short-term government bonds, margin accounts, or even funds used to repay debts after forced liquidations.
When the market experiences a liquidity shock, investors may sell off previously favored assets to replenish cash.
Even gold and $BTC are not necessarily immune.
But don’t forget, a drop in asset prices doesn’t mean all the money has disappeared—some money has just shifted, while some evaporates with the decline in valuations.
The real question is: is this just a deleveraging event, or a larger-scale liquidity crisis?
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