The cryptocurrency sell-off has exposed those swimming naked
And investors are beginning to discriminate
Financial aphorisms are trotted out by investors in every financial cycle. Think of “Buy the rumour, sell the fact”, or “Markets can stay irrational longer than you can stay solvent”. These sayings have staying power because they often ring true. Today, amid a general market rout, cryptocurrency assets are collapsing in value, and the aphorism of the moment is “When the tide goes out, you find out who is swimming naked”.
This article appeared in the Leaders section of the print edition under the headline “Sink or swim”
From the May 21st 2022 edition
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