The tail is wagging the dog as the crypto rout sparks a broad flight to quality

There are reports of outages at Coinbase — no doubt adding to the panic in bitcoin. The low print so far was exactly $30,000 and that is as good a place for a stand as anywhere. I suspect it will bounce from there. Nothing moves in a straight line forever, not even crypto. As I wrote earlier, traders trade. If this latest leg can be blamed on an outage, people will be buying the dip. Historical drops around outages are quickly bid up.

What’s amazing to me is that this latest leg lower in crypto has spilled outside of the space. USD/JPY is dropping, bonds are bid and oil is under pressure. That’s never been seen before. Despite it being a nightmare of a day for crypto, that’s a bit of a feather in its cap.