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Effects of Stock Market Correction on crypto market


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Thoughts on this?  Articles are beginning to appear such as 'Should you divest your stocks now?' etc.

Seems to me there is still far too much friction for the average investor to get started in crypto.  They want to pick up the phone

and tell their broker to buy 10k XRP rather than deal with wallets, private keys, and so forth.  Investment capital may be loosened up soon

in this market, question is whether crypto is where it will seek a home.

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Don't think it will have a noteworthy effect on the crypto market. The benefits of crypto and the process of getting it is still too hard to understand for the average man. They'll be turning to crypto when the market goes on a run like the last one and the mainstream media starts making FOMO content again

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6 minutes ago, captainjack said:

Don't think it will have a noteworthy effect on the crypto market. The benefits of crypto and the process of getting it is still too hard to understand for the average man. They'll be turning to crypto when the market goes on a run like the last one and the mainstream media starts making FOMO content again

There has to be some kind of solid institutional architecture develop around the crypto space.  Fidelity has taken a strong first move in

its custody efforts.  It will go a long way into legitimizing crypto as an asset class.  Then the real money might be tempted. 

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30 minutes ago, Blubber said:

There has to be some kind of solid institutional architecture develop around the crypto space.

Absolutely. There seems like there are many decent projects close to being launched. However, I don't think these new platforms will bring an immediate shift to the market. People and institutions who are desperate at getting their hands on crypto already possess the tools and knowledge of doing so. The impact of these new platforms will happen over time

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Discussed this here... posted on 1st Oct. Just updated it today with another post.

Back on Oct 1st, the S&P500 was trading at 2924. Today it's at 2656. That's actually a reasonably decent-sized correction in under a month, but imo it's just the beginning of something much nastier. 

Yes, I do think it will affect the crypto market.
 

 

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3 hours ago, JA8 said:

Discussed this here... posted on 1st Oct. Just updated it today with another post.

Back on Oct 1st, the S&P500 was trading at 2924. Today it's at 2656. That's actually a reasonably decent-sized correction in under a month, but imo it's just the beginning of something much nastier. 

Yes, I do think it will affect the crypto market.
 

 

A lot has happened in 3 weeks so by no means the last word on this subject.  Anything further?

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I've had this discussion with colleagues as well many times. I used to think more money would flow into crypto but now I'm beginning to think the opposite will happen. If the global economy tanks or slows down we'll probably see money leave crypto as people cash out and return to fiat to free up funds due to multiple reasons. 

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7 minutes ago, ripple37 said:

crypto is a risk asset. If **** go south it will be the last place ppl will invest

Bitcoin has been known to rally at times of geopolitical uncertainty. Since it’s a more convenient, albeit less proven, version of gold with no real counterparty risk, in theory it should continue to benefit in this way. 

To reiterate my argument from the other thread (although I suggest reading it): Other cryptos haven’t built up any safe haven goodwill at all (yet), so these are less likely to rally. There is always a chance that Bitcoin price action may set the tone for the wider crypto market, but assets that specifically pander to the legacy systems such as XRP - and which are therefore more exposed to that ecosystem’s implosion/contagion - will presumably not fare so well. 

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I guess one could always hold some bitcoin to see what happens. Right now one thing that really concerns me about bitcoin is how it went from $1k to $19k in one year. The time window is so small that its hard to determine where the actual floor price is. If it goes back to $1k investor confidence will be shattered. On the other hand if $4-5k holds we will be in a better position to be more hopeful for a future rally in some years. So many variables at play and unfortunately xrp is at btc's mercy. But yeah I hope money does flow into btc in a recession.

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5 minutes ago, bayarea510 said:

On the other hand if $4-5k holds we will be in a better position to be more hopeful for a future rally in some years. 

I was thinking something more along the lines: Global economic collapse 2018-2019, and Bitcoin up to $100k+ within 12 months.

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8 hours ago, ripple37 said:

nvidia and amd crashed coz they were not able to sell enough gpu for mining as they planned . I guess that means that crypto is" not good" in the eyes of normal investors.

I think it was more that sales will be far lower demand hasd ecreased immensely regarding the need for gpus etc for crypto? Bubble?

Edited by pumpndump
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