Take also the correlation between Bitcoin and Cathie Wood’s ARK Innovation ETF (ticker ARKK), a pandemic poster-child of speculative risk-taking. That correlation stands at around 60% year-to-date, versus about 14% for the price of gold, according to Katie Stockton, founder and managing partner of Fairlead Strategies, a research firm focused on technical analysis. It’s “reminding us to categorize Bitcoin and altcoins as risk assets rather than safe havens,” she said.
Though liquidations have spiked, the numbers are relatively muted when compared to previous declines, according to Noelle Acheson, head of market insights at Genesis Global Trading. Acheson points out that Bitcoin’s one-week skew, which compares the cost of bearish options to bullish ones, spiked to almost 15% on Wednesday compared to an average of about 6% in the past seven days.
Gen Z and Millenials were thinking 20% YOY stock market returns are a given indefinitely. This stock market, real estate and digital currency was so over-baked in the past 12+ months that this was inevitable. Guess the Fed printing presses couldn't keep up with the ponzi scheme. I think we are all in for some immediate pain as 401Ks become 301Ks or worst and bit coin is worth 50 cents on the dollar at best. These folks won't even be able to eat cat food as they all decided to quite their jobs to think they are professional day traders since even a drunk squirrel gets a nut when the market is shooting straight up. This is what us old school folks call an awakening moment that the party is over, the booze and food is gone and all that is left is a hang over and maxed out credit card.
If the Millennials pushing this silliness for the past few years had gone to business school they'd have known what happens to speculative assets during times of inflationary pressure. Oh well, by the time they are 50 they'll have learned their lesson...
發表於 2022-1-22 15:05:31
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