> Global stocks slipped and cryptocurrencies sank deeper on Wednesday as a threat of unwanted inflation had investors shy away from assets seen as vulnerable to any removal of monetary stimulus.
The full title of this article is worth noting: "Crypto crash deepens, stocks slip". For some reason, that was changed for this posting.
Bitcoin is increasingly being seen as a barometer for market liquidity. As Bitcoin goes, so go the markets. That's the real story here.
We may not be there yet, but at some point, Bitcoin will drive broader market liquidity (stocks, bonds, gold, real estate), rather than feeding on its table scraps.
Regarding the volatility, this is nothing new. Anyone involved for more that four years has seen this before and worse. What is new is the sheer number of people involved. Bitcoin's user base doubles roughly once every 1.5 years. That means that at any particular moment in time about half of the participants have been at it for one year or less. When they see their first fierce selloff, predictably accompanied by a vague announcement from China, it can be very unsettling.
When this was happening with a small user base of mostly computer nerds and libertarians, it was easy to write off. When the user base includes respected financial institutions (as it now does), things get interesting.
The full title of this article is worth noting: "Crypto crash deepens, stocks slip". For some reason, that was changed for this posting.
Bitcoin is increasingly being seen as a barometer for market liquidity. As Bitcoin goes, so go the markets. That's the real story here.
We may not be there yet, but at some point, Bitcoin will drive broader market liquidity (stocks, bonds, gold, real estate), rather than feeding on its table scraps.
Regarding the volatility, this is nothing new. Anyone involved for more that four years has seen this before and worse. What is new is the sheer number of people involved. Bitcoin's user base doubles roughly once every 1.5 years. That means that at any particular moment in time about half of the participants have been at it for one year or less. When they see their first fierce selloff, predictably accompanied by a vague announcement from China, it can be very unsettling.
When this was happening with a small user base of mostly computer nerds and libertarians, it was easy to write off. When the user base includes respected financial institutions (as it now does), things get interesting.