Why might this be affecting BTC?
BTC is just another asset to diversify into, so it'd be really weird if it wasn't affected by global deleveraging and some margin calls, even if tradfi.
Stocks trampled as Nikkei crashes 13%
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Re: Stocks trampled as Nikkei crashes 13%
#22why do we have this sensationalist click-baity stock-market focused article on the HN front page?
Re: Stocks trampled as Nikkei crashes 13%
#23Why might this be affecting BTC?
Correlation vs causation
Re: Stocks trampled as Nikkei crashes 13%
#24It’s scary headlines like this: ‘trampled’, ‘crashes’, that put off less informed, risk averse individuals on lower incomes/ net worth, from investing in stocks. It’s a shame, as ETFs, and hell, index funds if you must, outperform savings on a 3 year or even less horizon. Yes, my portfolio dropped 7% this month. I’m still up 6% YTD and 13% in the last 12 months. My horizon is well over 5 years. It would be an easy wa…
I think you’re right, and even though it scares me a lot seeing my portfoilio down like this, I still try to see it as an opportunity to buy at a discount. It means I have to hold onto some more liquid funds, but i think it can turn out to be well worth it if you’re long term.
Re: Stocks trampled as Nikkei crashes 13%
#25Nice! Going to be looking for volatility to sell... Lots of panicked investors gonna be rushing for insurance tomorrow. :DDD
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Re: Stocks trampled as Nikkei crashes 13%
#26It’s scary headlines like this: ‘trampled’, ‘crashes’, that put off less informed, risk averse individuals on lower incomes/ net worth, from investing in stocks. It’s a shame, as ETFs, and hell, index funds if you must, outperform savings on a 3 year or even less horizon. Yes, my portfolio dropped 7% this month. I’m still up 6% YTD and 13% in the last 12 months. My horizon is well over 5 years. It would be an easy wa…
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Re: Stocks trampled as Nikkei crashes 13%
#27Why might this be affecting BTC?
Selling of all risky assets tends to be correlated. It's called "risk off" sentiment.
This happens because when one asset drop in price, leveraged investors (i.e. those who borrowed to buy) may get "margin calls" from their lenders. This means that the total value of their portfolio (when including the loan) is in danger of going negative, and they may need to sell everything.
Re: Stocks trampled as Nikkei crashes 13%
#28It’s scary headlines like this: ‘trampled’, ‘crashes’, that put off less informed, risk averse individuals on lower incomes/ net worth, from investing in stocks. It’s a shame, as ETFs, and hell, index funds if you must, outperform savings on a 3 year or even less horizon. Yes, my portfolio dropped 7% this month. I’m still up 6% YTD and 13% in the last 12 months. My horizon is well over 5 years. It would be an easy wa…
>I’m still up 6% YTD and 13% in the last 12 months. For now. It can still go lower.
It can always go lower, but this is called bear porn.
Path of least resistance is higher; too high too fast for too long causes people to lever up and this blows up sometimes, like in the past few sessions.
Question is how much of the carry trade will unwind now. Regulators will socialize the losses if it happens all at once, that you can be sure of.
Re: Stocks trampled as Nikkei crashes 13%
#29It’s scary headlines like this: ‘trampled’, ‘crashes’, that put off less informed, risk averse individuals on lower incomes/ net worth, from investing in stocks. It’s a shame, as ETFs, and hell, index funds if you must, outperform savings on a 3 year or even less horizon. Yes, my portfolio dropped 7% this month. I’m still up 6% YTD and 13% in the last 12 months. My horizon is well over 5 years. It would be an easy wa…
>I’m still up 6% YTD and 13% in the last 12 months. For now. It can still go lower.
The point is that over even fairly short time it will go higher more than it goes lower.
Re: Stocks trampled as Nikkei crashes 13%
#30Why would a high amount of trades trigger circuit breakers? That is just network traffic not power load, no?