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.
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