Father of High-Frequency Trading: Potential Bitcoin Crash Could Bring Down U.S. Stocks Next Year

2024-12-17 20:01:39

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ChainCatcher news, Thomas Peterffy, the founder and chairman of Interactive Brokers, known as the "father of high-frequency trading," stated in an interview with Bloomberg that a potential Bitcoin crash is one of the biggest risks that could lead to a decline in the stock market in 2025. The high leverage levels in the entire system are the main reason for his concern about a possible drop in U.S. stocks in 2025.

He explained, "The risk of an economic downturn is very high because margin balances are growing very, very quickly. I am very concerned that people are overextending their financial capabilities… One area where margin risk has increased significantly is Bitcoin, thanks to the low fees charged by the Chicago Mercantile Exchange (CME) for Bitcoin futures."

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