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.