[BTC] - The Correction , The Bigger Picture?
HI all, Crypto Sludge here.
A slightly different post tonight, what I am about to say is not by far a concrete theory, and it totally needs more time to unravel but none the less, it's starting to look interesting and we do need to consider that there might be bigger forces at play here.
A news article regarding the stock market has got me thinking yesterday, so I looked at some charts. Lets have a look at them together now.
S&P 500
Gold
Nasdaq
BTC
Noticing a pattern here? Yea, me too, everything is down, and in significant percentages.
Now lets have a look at other charts.
VIX (of for those unfamiliar - "The Fear Index"
USD Index
Noticing the pattern here?
The fear index is at a high we haven't seen for a while, and guess what the USD index is actually recovering after going down for ages.
The bigger picture
So what if, the BTC correction we are seeing right now, is actually a part of a larger trend, a trend fueled by the announcement of the US Federal reserve that it will stop printing money at the insane rate they been doing for the past 10 years (ever since the 2008 subprime crash).
That "cheap" money has inflated prices and blew up bubbles of pretty much every assets class out there, very much could be Bitcoin as well, and now since the cheap money is about to go away, the growth will not be sustainable in all the markets and the markets are starting to price that in.
The really sad part here, is that the size of the crytpo market is just a small drop in the ocean compared to the other markets, and the kind of correction we are seeing in BTC will be just a small fraction of the correction the other markets will see, we are talking Billions vs Trillions here, remember 2008? That was not fun at all...
So what are the good things to take from this wacky theory? Well, the 1st one is that I could be obviously wrong :) I mean i am just a random guy on the internet, dafuq do I know?
And the 2nd thing is that if all the markets are really before a major correction? The old financial system is about to hurt a shit ton of people (again), their reputation barely recovered form the crash of 2008, how many people will say enough? how many people will loose trust in the stock brokers, the fund managers, the financial consultants?
And where could they go? yup, i know you are thinking it.
Stay strong.
Trade ON!
Crypto Sludge
edit:spelling.
It might be the beginning of the "big one", or maybe just another small adjustment on the way. but the one guy that made sense of it all for me, lately, is Mike Maloney: when he said that historically inflation followed a short period of inflation, and the reason that currencies did not enter hyper-inflation(as a result of QE) is the low velocity of money. It only takes on asset bubble to pop in order to reveal reality, and warrant a major crash.
So true! With the amount of "money out of thin air" been thrown into the world economy over the last 10 years, i find it amazing we haven't seen something really big yet. And yea i completely agree, it could be just a small bump on the inevitable road to hell riding the comfortable saloon called "Debt" :D
Man I just made a post telling everyone to quit shaking in their boots. Big ups on being on the same page. This is bound to happen to anything that is here to stay! Life's ups and downs. But they confirm LIFE...
"Confirm Life" love it.
Same Page My Man.
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Your reputation has gone down 2 numbers in the past couple hours. Be careful! Your content is great, but this is not the best way to promote it. I’m only trying to help you. I track the word “marijuana” so I get updates in Discord every time you post this link. If that’s how you want to promote, I would suggest at the very least only posting the link in cannabis related posts. It’s a shame, and they’re all fools, but not everyone loves cannabis as much as us. 😜
In my case, although his response doesn't fit the topic of the post, i'll let it slide :) used to be a major pot head once, much more calm now :) but i still enjoy 420 content.
Ha that’s cool. I was just trying to warn him because he’s not going to be very successful here promoting a post that way.
That is pretty much guaranteed. Very nice of you to try to help him.
You're right bro, excuse me, I'm new to this! I will not do, Thanks for the warning.
alot of people selling seems like, everyone i know is
Are you referring just for crypto? or traditional markets as well, i am trying to gather the sentiment on all sides.
Stocks took a big hit also last week
Great
nice post, I like to kind people who want to share
I think you missed the point of my post :)
No lol. It's a joke. I agree, now is the time to buy.
:D
Printing money means more increase for bitcoin. So hopefully they print more.
Actually i hope they don't. I want their pyramid of cards to fall down, and bitcoin and crypto to take the real value.
interesting take on the situation, any preditions?
Not yet, we need to wait and see a bit, traditional markets re-opening after the weekend will be interesting to watch, Bitcoin as well. I will of course keep updating on my take on the situation as it unravels.
I like the format of the post.
I've recently heard the report of huge trading agency - they reported the results of 2017. Regarding NASDAQ and S'n'P they told that the results of 2017 are lower than in 2016 because of the expectations of the fall. Technical indicators have been showing that market is overbought since the beginning of the year so they did not risk... Same with BTC since october.
Thanks man! Yes, the overall sentiment is that this is already priced in. I am just trying to connect the dots, and asking a simple question, is it really priced in? or did they get too greedy.