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Reddit vs Wall Street: Correlation and Potential Impacts Traditional Markets have on the Crypto Market


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Not sure if anyone is following the reddit vs wall street fiasco right now. Share prices of AMC Entertainment, Game Stop (GME) and Black Berry (BB) have all sky rocketed, namely GME due to a coordinated effort by retail investors from the subreddit WallStreetBets. In my opinion, all of these companies are experiencing diminished market value due to losses in market share (respectively). Safe to assume that this cannot play out for too much longer without some sort of regulatory intervention. This could really screw up the stock market and potentially people's ability to trade traditional equity markets through different trading platforms geared towards retail investors.

 

So my questions are... 

1. What's everyone's opinion 

& More importantly....

2.  How could a situation like this affect the crypto market if these artificial pumps ultimately have a negative effect on the stock market and cause a stock market pullback? 

Could crypto be a hedge?

 

Pretty preposterous situation

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They didn’t organise a pump and dump. 

WSB are NOT pumping and dumping...they are attacking (illegal) naked shorts and attempting to trigger a short squeeze. There is much pain to follow for Robinhood and their like who have (illegally) re

Troote, I respect your posts, but my eyes were opened today. The short squeeze by WSB did not happen over two days. It's all been out in the open and it's been building for at least a month. The hedge

I don’t use reddit but sounds to me like a pump and dump group. That’s illegal but it happens all the time, both in the stock market and in the crypto space. This whole “4 year cycle” is most likely a massive pump and dump orchestrated by a few whales and compounded by retail trying to ride the wave and trying to time it correctly. Why else would there be a “4 year cycle”? There’s nothing tangible behind it, like say, the moon’s phases. It’s just “oh it’s time for the bull cycle cuz it’s been 3 years of bear market”. Inorganic. 

Edited by Neurotoxin
Small spelling mistake
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This already occurs in the crypto industry every ~3 years.  Especially during the last huge BTC bull run in 2017.  If you followed both events, the 2017 crypto bull run was very similar to this stock shorting event with GME (which will most likely have alts following like AMC and BB).


There are a large group of investors that are always looking for opportunities like this to mass invest, which comes up every few years.  The investors that get in early and out (before the crash), make a ton of money.  Then the prices crash and leave bag holders with a big loss in investment for at least the short term.

 

After this stock shorting event with GME, AMC, BB crashes; this similar type of event will most likely occur again in 3-5 years with investors flocking to a new investment that offers drastic profits in the short term.

Edited by wogojump
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at neuro

Yes and no

Of course a lot of manipulation plays into it (tether, whalepumps etc), but the market leader Bitcoin is also simply ingeniously designed to rise in value. Halving effectively makes mining a new BTC twice as expensive, meaning the miner has no incentive to sell his BTC at a lower price because he then makes a loss. This takes a lot of selling pressure out of the market. Together with the simple propaganda that BTC keeps rising, this is already enough.

 

Edited by Elysium2030
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7 hours ago, Neurotoxin said:

I don’t use reddit but sounds to me like a pump and dump group. That’s illegal but it happens all the time, both in the stock market and in the crypto space. This whole “4 year cycle” is most likely a massive pump and dump orchestrated by a few whales and compounded by retail trying to ride the wave and trying to time it correctly. Why else would there be a “4 year cycle”? There’s nothing tangible behind it, like say, the moon’s phases. It’s just “oh it’s time for the bull cycle cuz it’s been 3 years of bear market”. Inorganic. 

Isn't it because miners are earning less BTC per block, therefore there's less sell pressure on the BTC market (since less BTC for miners to sell)?

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2 hours ago, 2ndtimearound said:

Isn't it because miners are earning less BTC per block, therefore there's less sell pressure on the BTC market (since less BTC for miners to sell)?

If that was the only variable, we’d see slow and steady growth. Not massive parabolic pumps followed by years of crashed price action. 

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I have mixed feelings about this story. For sure it's funny, but at the end of the day, organizing pump and dumps is illegal... I wouldn't be surprised if the moderators of r/WallStreetBets ended up with huge lawsuits... I would be very afraid right now if I were them.

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13 minutes ago, Troote said:

I have mixed feelings about this story. For sure it's funny, but at the end of the day, organizing pump and dumps is illegal... I wouldn't be surprised if the moderators of r/WallStreetBets ended up with huge lawsuits... I would be very afraid right now if I were them.

I don't think they ll have problems , and they are pumping Doge now.

XRP next? don't think so , too much coins people don't want to touch it :(( 

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