Bitcoin has no lender of last resort for those who take undue risks. Bitcoin’s recent leverage cleansing is par for the course for a truly scarce asset.
The below is a direct excerpt of Marty’s Bent Issue
There’s no way to tell if a significantly de-levered and relatively cheap bitcoin would be the asset that individuals and larger capital allocators turn to as the world goes to shit, finally bringing to fruition the “safe haven” narrative. It’s hard to deny that the conditions for a decoupling to actually happen will be riper than they ever have been. Keep an eye out on this as we get closer to October and November 2022.