@annnelly
During large-scale hack events, cross-asset betas (BTC-ETH-ALT) spike toward one, reflecting systemic deleveraging. Correlation matrices flatten as investors unwind leverage indiscriminately. Intraday analysis shows beta convergence within minutes of headline release, with BTC absorbing primary liquidity shocks. Smaller alts often underperform disproportionately due to weaker depth. Systematic deleverage also drives perpetual funding rates negative across assets. These stress correlations persist for 24–48 hours, after which dispersion re-emerges. Monitoring rolling betas with 5-minute granularity provides visibility into when systemic risk peaks during such shocks.
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