Understanding the Latest Crypto Market Crash

[gazmo]

found this great piece on today's crash: https://chainbulletin.com/global-recession-indicators-send-the-crypto-market-in-freefall/

 

[CryptoKujira]

Not much to understand.

Feds cut the interest rate, increasing fears of new recession.

US economy has been on a 10yr bull run without a major correction. Last recession was in 2008, and we didn't hit bottom until around 2010 when things finally started to rebound. And it still took another 2-3 years before economy really started to pick itself up and shake the dust off. Of course, the catalyst for that collapse was the bank-loans-for-housing scandal. What will be the catalyst this time that pushes us over the cliff?

Watch the price of gold closely. It's been pumping since the beginning of the year. Why? Because the big institutions know what's coming.

Pull up a chart of gold between 2008-2012 if you want to see what the price of gold does during a recession.

Click the 5Y and click-drag the chart to 2008-2012
https://www.tradingview.com/symbols/XAUUSD/

No telling what crypto will do. Most think it will pump, but honestly, nobody has a clue as this would be the first real recession during crypto era.

 

[Sherb]

If a stock market trader is concerned and careful enough with their investments to pull them out when there are potential signals of a recession, there is no way in hell they are going to put it in the unpredictable and volatile world of crypto gambling.

 

[zaogord]

Following. Wanna know more about what yally think

 

[sylvyo]

interesting to see that Bitcoin is still not the prefered new safe asset
but i believe it will be sooner or later, and then it will explode

 

[RebeccaThomas]

No telling what crypto will do. Most think it will pump, but honestly, nobody has a clue as this would be the first real recession during crypto era.

Nobody really believes that Crypto is a safe haven for cash yet. Nobody with real money to play with anyway!

Crypto will tank, ironically making it a great time to purchase for those with a few $$$'s they don't mind taking a punt on something with.

 

[Member_MMO]

Everything may be wrong by 2020 because many important events happen like elections, government policies, corporate policies, etc...

 

[710fla]

After Facebook Libra coin price for crypto will boom again. FB will be pushing crypto HARD

 

[sdeviation]

I am following

 

[mohwner]

Not much to understand.

Feds cut the interest rate, increasing fears of new recession.

US economy has been on a 10yr bull run without a major correction. Last recession was in 2008, and we didn't hit bottom until around 2010 when things finally started to rebound. And it still took another 2-3 years before economy really started to pick itself up and shake the dust off. Of course, the catalyst for that collapse was the bank-loans-for-housing scandal. What will be the catalyst this time that pushes us over the cliff?

Watch the price of gold closely. It's been pumping since the beginning of the year. Why? Because the big institutions know what's coming.

Pull up a chart of gold between 2008-2012 if you want to see what the price of gold does during a recession.

Click the 5Y and click-drag the chart to 2008-2012
https://www.tradingview.com/symbols/XAUUSD/

No telling what crypto will do. Most think it will pump, but honestly, nobody has a clue as this would be the first real recession during crypto era.

+1, buying gold looks like a great investment right now. Not sure about bitcoin, but I personally think it will pump because many consider it a safe haven asset and the other catalyst is the halving coming next year as well

 

[CryptoKujira]

many consider it a safe haven asset

I think there is a big misconception about how many people consider crypto a 'safe haven'. To me it seems like the only ones who consider it a 'safe haven' are the crypto enthusiasts who are already 'all in' on crypto. Additionally, from being on trading sites daily, it's seems the majority of people in crypto have never traded stocks, forex, or commodities, and don't understand those markets.

So if they majority of crypto enthusiasts are already all-in on crypto, and have no other investments to 'move over from (other assets) into crypto' this means there are only two other groups of investors left to pump this during a recession.

• Institutions
• Newbies (retailers) who haven't invested in crypto yet, and who have investments in other asset classes such as stocks, bonds, forex, etc.

Only one of those groups has the abililty to make the market move in a recession. Can you guess which one? The other group will be struggling to pay house bills, a few might lose their jobs, and most will be living on a tight budget while their 401k plummets.

So now we're left with Institutions. It's up to them to decide whether or not they thing crypto is a 'safe haven'. Doesn't matter what you, me, or any of the other retailers think on this matter, as we don't have the ability to affect the market in a recession. Sad but true.

 

[IG Professor]

You will always hear stories. This is a guarantee

Follow the charts