Also, Crypto in general has gotten quite inflated, due to lack of other investment opportunities in traditional assets, especially since the Pandemic has made a bunch of people somewhat nervous about profit-opportunities going forward. And in general there was sort of a glut of "good investments" being made even before the pandemic, with investors putting their money into increasingly stupid projects, such as WeWork and other start-ups.
Since people didn't have a good place to park their money, in a way that wouldn't expose them to emormous risk themselves, they ended up backing crypto, after seeing a bunch of complete hucksters ride that wave and get off at the right moment. Thus, everyone with excess capital ended up placing that capital in some kind of crypto, which pumped the price even further. obviously that shit is unsustainable as fuck, as the recent tumbles have shown.
It’s supposed a hedge against many things. In reality, it has been fully captured by finance and is completely tied to the general stock market. No hedges here
To piggyback on this, the reason this is the case is that crypto has no intrinsic value. So when the market is up and investors have lots of money, they can throw money at crypto too, and crypto goes up. When the stock market goes down, people have less equity and they aren't going to sell real capital to buy crypto.
It's why rolexes and pokemon cards have been up too. People have so much money, they don't know what to do with it. When the market goes down, that's less the case. Fewer buyers and lower bids means price goes down.
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Also, Crypto in general has gotten quite inflated, due to lack of other investment opportunities in traditional assets, especially since the Pandemic has made a bunch of people somewhat nervous about profit-opportunities going forward. And in general there was sort of a glut of "good investments" being made even before the pandemic, with investors putting their money into increasingly stupid projects, such as WeWork and other start-ups. Since people didn't have a good place to park their money, in a way that wouldn't expose them to emormous risk themselves, they ended up backing crypto, after seeing a bunch of complete hucksters ride that wave and get off at the right moment. Thus, everyone with excess capital ended up placing that capital in some kind of crypto, which pumped the price even further. obviously that shit is unsustainable as fuck, as the recent tumbles have shown.
I thought crypto was supposed to behave like gold, where when stocks tank, gold prices rise.
It’s supposed a hedge against many things. In reality, it has been fully captured by finance and is completely tied to the general stock market. No hedges here
This is the reality of it. The same big players who move the stock market move the crypto markets, they just organize under different names.
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To piggyback on this, the reason this is the case is that crypto has no intrinsic value. So when the market is up and investors have lots of money, they can throw money at crypto too, and crypto goes up. When the stock market goes down, people have less equity and they aren't going to sell real capital to buy crypto.
It's why rolexes and pokemon cards have been up too. People have so much money, they don't know what to do with it. When the market goes down, that's less the case. Fewer buyers and lower bids means price goes down.
@Speaker
lol lmao
Lol. Lmao.