TheKingfisher|2月 25, 2026 17:13
Diversification benefits evaporate during liquidation cascades.
Normal market: BTC - ETH correlation ~0.65
Stress events (2025): BTC - ETH correlation ~0.85
When liquidations trigger, assets move together. The October 11, 2025 event wiped out diversified portfolios simultaneously.
Tail risk doesn't diversify.(TheKingfisher)
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