If you happen to watch also the stock markets, in the last couple of days and especially today there was a huge crash also in US (and around the world of course). It seems that people are selling assets (crypto and stocks). Is there a correlation or not?
Gold is rising while equity markets around the world and cryptocurrencies are crashing. This kind of punches a hole in the theory that Bitcoin will be considered as some kind of digital gold. There definitely is a correlation and investors are selling risky assets because the yield on treasury bonds is increasing, making them more attractive.
I agree that main theme is the rising of treasury bonds yield, but the situation may get worse since a lot of investment was also done in volatility based ETFs - especially the ones that were shorting volatility (like XIV which was crashed from 140$ to 15$ in just 2 days erasing half a billion $ from Credit Suisse P/L *** since they hold 1/3 of these shares). XIV pre-market trade is halted for the moment and there are rumors that CS will be forced to liquidate what's left...
On top pension funds - not only retail investors - have been invertsing in these ETFs creating a huge bubble which makes the so called BTC bubble look like a kidder garden.
*** Correction no impact on the P/L of Credit Suisse, just the holders of XIV will suffer the loss