posted by iclfan2
The markets today… are something. Serious question, I thought crypto was supposed to not move with the market? Looks like Bitcoin down big too.
As far as I can surmise, most of the trading activity in bitcoin is day traders and institutional guys. To the extent leverage is involved, you tend to sell more liquid assets to meet margin calls in a down market.
Or we might speculate that bitcoin, itself, is a proxy/leading indicator for the larger market bubble (driven by over a decade of easy money - we've seen this movie before).
The computerized trading programs really seem to drive market volatility. They tend to pile in when big price movements disconnected from fundamentals trigger buy/sell in these programs. ETF's have a ton of buying & selling, too, in order track whatever benchmark indexes they are designed for.
Increased volatility, inflation & energy prices, earnings misses, Q1 GDP contraction....lot of flashing red lights of a coming recession.