Why Traditional Finance’s Outdated Models Are a Timed Bomb
The crypto market is no longer a niche playground for speculators—it’s a systemic force reshaping global finance. Yet, as institutional players pour capital into digital assets, they’re doing so with risk models built for a bygone era. The result? A ticking time bomb of liquidity mismatches and leverage vulnerabilities that could destabilize both crypto and traditional finance (TradFi).
The Liquidity Mismatch: A Perfect Storm
The U.S. Treasury General Account (TGA) refill in 2025 has become a flashpoint for systemic risk. With $400 billion in liquidity expected to vanish from the financial system, the CoinDesk 80 Index has plummeted 13% since late July, while Bitcoin and Ethereum face relentless selling pressure. This isn’t just a…
