The markets hits a speed bump
For six straight days the stock market has gone down, with the dow Jones losing nearly 2000 points. This has been the worst period in 10 years. Has the stock bear market begun & if so what does this mean for crypto? Taking a look at the stock market crash & the future of crypto.
With the coronavirus scare in full bloom & the worst fears of it turning into a full pandemic quickly being realized the NYSE is in full panic, giving up the ghost & descending to 5 year lows.
Crypto has also hit a bit of a slump, largely due to the miners in China as well as the Chinese governments ban on VPNs blocking market sells in the country. I see this as only a temporary situation as the heat up & a market crash combined with the halving will be that catalyst.
Stocks lower|Crypto higher
Here’s my take in it, as the stock market goes lower more people will sell, which will lead to more panic leading to more panic selling. This will lead to a domino effect pushing the market lower. What does this have to do with the crypto market? The halving is the great opportunity that will push the crypto market higher.
Why? Institutional money. As the stock market goes lower fund managers will need a place to park their cash. Smart money will see this coming & so the same. Last, but not least – retail investors will jump on board, hoping to recoup their stock loses through the crypto market. As the stock market turns bearish the crypto bull market heat up which I expected after May, could start as early as mid-March.
These are troubling, but also exciting times to be in the market with plenty of opportunities to make money. Just make sure to proceed with caution.
Note: This is not financial advise & is for edutainment purposes only. Securities trading\speculation involve a level of risk & Crypto investing\speculation is a highly volatile market place, please only invest money that you are comfortable losing. Remember to ALWAYS use stops