Digital credit market hit by huge selloff as Strive CEO blames leverage liquidations
Matt Cole says forced selling from leveraged investors pushed STRC and SATA sharply lower before both rebounded.
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Summary
- Matt Cole said the decline was a “leverage liquidation event” caused by margin calls and forced selling, not a weakening of issuers’ credit quality.
- Both STRC and SATA rebounded from their intraday lows, with Cole pointing to strong buying interest as evidence of continued demand for digital credit assets.
- Cole compared the episode to historical hedge fund blowups involving leveraged U.S. Treasury positions, noting that Treasury securities themselves remained strong credits despite periods of market stress.
