Post
Topic
Board Trading Discussion
Re: switching to fiat money vs shorting Btc as a consistent hedging strategy
by
pooya87
on 02/05/2021, 05:10:42 UTC
Your scenario is an extreme one though, from $60k to $30k is not just a normal drop it is a catastrophic market crash that is not going to happen that easily and is definitely not a regular thing. Usually we see smaller drops of 10% which is actually the most regular thing in this market and bigger "crashes" are around 30% most of the times.
Your exposure and the risks you are talking also decreases by a lot when you consider the smaller size of the drops. But generally speaking shorting is always riskier and shorting bitcoin specially when it is in a bull market has a bigger additional risk.