Today is the type of day when you wished you had a magic stick that would allow turning back time and changing something, something that matters...but I guess you don't find a store with such items, and never will. If you haven't checked the crypto prices lately I wouldn't advise the heart fainted ones to do so.
Such crashes, as the one of today, I haven't seen...ever in crypto. Almost $60 billion wiped out in less than a day and a $2,000 discount for BTC. We might get even bigger discounts if the Corona panic gets more and more hyped. It's not something to overlook definitely, but I never imagined that it would have such an impact on the crypto markets.
I haven't checked stocks, oil, and gold prices, but I guess it's them that triggered everything, and a day like this one proves that BTC is really not a hedge during such times. Time of crisis, and the way I see it, it's the beginning of a long announced global recession. At least the bells rang a couple of times in the past years but who listened to them...
We're having a halving for BTC in about two months, right? Usually halvings are bullish for its price and usually crypto experts were claiming that during, or at least at the beginning of a financial crisis, BTC should be a safe haven for investors. Looks like it isn't and this might be the worst priced halving in the history of BTC. Who knows, maybe after the halving it will follow it's upward trend and repeat history, but for now it's playing on the same song as the the other assets are.
The only reason that I would see valid for investors, institutional and retail, to hurdle towards BTC and other cryptos is for world governments to announce that digital currencies are the future, that cash as we know it is going extinct, due to its risky status during such pandemics, and the economies will shift radically. Otherwise why would you not sell BTC, if owning any?
If you're about to be fired, have mortgages, leases and so on, and a couple of BTC on a wallet, you will for sure be tempted to sell that highly valuable asset instead of risking to be kicked out of your own home. For the moment I assume we're just opening the door for the financial crisis to come, and although there are talks about governments pumping money into the market, I doubt all this will be just a shortly lived crisis and market crash.
I guess during these times we have the chance to test theory into practice, and today we have the proof that BTC is no different from any other type of assets, that is highly correlated with stocks and other major assets, and if they'll get lower, it will get lower as well. How much, is hard to predict but at this moment anything is possible. I guess the ground is the limit, and the moon seems more and more far away.
I am not yet selling my cryptos, because I can still survive without cashing them out, and honestly I still have some small hope that halving will have an impact after all, and if world governments will clearly show their direction towards digital currencies and ditching cash, then holding digital currencies already might mean being one step ahead of everybody. I might be wrong...or not. What's your take?
Pic courtesy of pixabay and free to use
Thanks for attention,
Posted via Steemleo