What if... by some strange 6th sense, a lot of people bought into the crypto's as a safe haven type of hedge due to the fact the Fed was going to announce whether it was going to raise rates or not. The uncertainty of not knowing does strange things sometimes. As it turns out, Yellen came out with "wonderful" news once again that the economy is just cooking along. BUT, while it may be cooking along, the pot has far past boiled down to nothing and the aluminum utensil being used is actually burning. However, we did have the horrible headline of a now 16 month retail sales low which was worse than expected. To that, the DOW rallies up at near or possibly a new high. (I don't know anymore I've stopped keeping track it's so ridiculous)
OK, then the crypto's, at least BTC and ETH were doing well this morning and as I'm writing this Wed evening, are now down over 11% and 13% respectively. So here, do we have a 'collective' sigh of relieve and yet another diversion that everything is okey-dokey and we go on with business as usual. EXCEPT, the burning smell of the aluminum is getting stronger and stronger. First it was slight and I started looking around, it got stronger, I decided to put some funds into metals, then I started to see smoke, I decided to put some funds into crypto's, now the room is filling up and I'm afraid there isn't a window. It stinks really bad.
I'm very concerned for all of us that this trend is not going to stop; I don't think it can. At some point in the near future, things will be catastrophic. Could it be that we've heard so many warnings before that we've grown numb to them? It also may be that people think life goes on perpetually, and well, bad things always happen to someone else I'm immuned. (yes we are all superhumans, I get it) I can't help but think of that book from years ago, "who moved my cheese". In which case, we need to be sure we can help those in need when the time comes also!
Maybe this isn't a reason for the drop in crypto's, but it is worth a ponder. I've been wrong plenty of times before, but occasionally I've also been right. But, it's not really about being wrong or right, it's about common sense and thinking critically.
What do you think?
My own guess is that it's some air being let out of the bubble. Cryptos have been on a tear and this is healthy imo.
A lot of ICOs lately and just as with the dot com bubble, some are really great companies while others shouldn't see the light of day. Who knows when the major shakeout will occur.
Thanks... I think it's healthy as well, seems like it was creating it's own bubble. Glad you said something about the dot com bubble, I've sure been feeling that it really seems like we've been here before, probably have... only worse this time around...