Then why is the stock market crashing? This has nothing to do specifically with crypto and everything to do with rising interest rates among other macroeconomic factors.
I doubt crypto is the driver. Seems more likely that institutional investors are pulling out of cryptos as inflation spikes. So crypto crash is an effect, not a cause.
hmm none! The Cryptocurrency market is very unstable right now. This is different from usual stock market instability. When stock indices fall, given enough time they will bounce back. However, Crypto's very viability is in question so it is a very risky gamble.
That said, it all depends on your investment profile. Are you a big risk big reward person? Even if that is the case crypto's don't really offer high rewards for the high risk at this point in history
This isn’t a crash in historical terms. It’s simply repeating previous patterns. If we do have a true crash that wipes out most of the stored value and takes a decade to recover, like the dot-com crash, the effect on tech sector wealth in particular will be profound.
Right now, this is just the usual ebb and flow.
What I think is interesting about crypto is that it has the potential to go to zero because it has zero intrinsic value, unlike for example dot-com stocks, many of which had some value in the form of cashflow.
The two most likely scenarios that could cause a crash to zero, in my mind, are an unrecoverable vulnerability in a blockchain, or a brutal and global regulatory clampdown. The latter may not cause a crash to zero if some underground activity remains.
The probability of the globe simply falling out of love and discarding this new value store like a wilting tulip is unlikely in my opinion.
As an outside observer, who has no crypto holdings at all, but is very deeply invested in the public stock market with a heavy weight on technology stocks... this doesn't look like a crash to me at all. It just looks like some steam being let off and old investors cash out and new investors get more comfortable with how much and where to invest.
I consider crypto currency as it is to be an elaborate Ponzi scheme (personal view), but even with that cynicism nothing about this dip looks unhealthy to me. (I have views on what ultimately happens, but I will hold back on that)
It's so confusing to understand what this means exactly, you'd think the market of crypto would crash on this news, and if anything, it went up a little right after the news broke?
You’re getting downvoted for no apparent reason, but there’s an argument to be made here that crypto crashing would cause retail investors to pull out of investments altogether, and meme stocks like Tesla would take a hit. Bloomberg, WSJ, etc. are all writing about this potential contagion effect today.
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