Update from Scott Phillips 5-19-2022
Let’s address the elephant in the room.
Everything was going swimmingly for crypto in stimulus world.
Money printing make number go up. J-Pow good boy.
And then the Fed threatened to take away the punchbowl.
Stocks threw a tantrum, specifically all the profitless garbage that got pumped from the pandemic.
And now the market is descending into Warren Buffet quote territory…
Today the Nasdaq truly peed the bed, in a special way.
You see, yesterday the market looked like it had found a bottom and stabilized… and today’s price action put the lie to it.
Anything that catches traders by surprise will cause a bigger move in the opposite direction.
So now (sadly) those recent lows in stocks are under pressure.
If they break… well it could drag crypto down another leg.
If crypto breaks the lows of last week… that will probably cause a violent capitulation that freaks everyone out.
The insufferable gloating from the stopped-clock crypto haters is wearing me down… Don’t these clowns realize that they’ve been wrong literally every time this happened before?
It’s not dead… just resting…
Here’s the thing.
Stocks are supposedly safer than crypto, and they crashed today.
Bitcoin was down a little, but held up surprisingly well
What we are seeing is the first sign of decoupling of equities and crypto.
Long may it continue.
That right there is the thing to watch right now.
If crypto and stocks decide to give each other a little space and see other people… we just might be alright.
