Stocks and crypto are falling.
SPY stock (S&P 500) has fallen below $400 per share and is now down more than 17% this year to date.
Bitcoin is down more than 37% this year and has fallen below $30,000 again.
Banks and hedge funds have been selling off both the stock and crypto markets as the need for liquidity rises.
Will stocks and crypto go back up again?
Let’s discuss it.
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Banks and hedge funds tank the markets
Banks and hedge funds have been responsible for essentially every market crash in history.
But nothing has truly been done about the systemic risks caused by these financial institutions.
Today we’re seeing the collapse of both stocks and crypto.
Massive selloffs in the market are providing liquidity to institutions in order to keep their losing short positions open.
On top of these fire sales, the amount of shorting has increased to hedge against losses from last year’s bull run.
Short sellers lost billions of dollars last year when the ‘meme stock’ frenzy took over Wall Street.
Today, hedge funds are liquidating the markets to keep up with increased margin requirements this new year.
But at what cost?
Investors invested in great companies are losing money not because of business fundamentals, but because of the lack of regulation in the financial system.
Crypto developers say crypto crash was coordinated
LUNA and UST developers said this week’s crash was caused by a coordinated attack from hedge funds and big banks.
It comes as no surprise since hedge funds and big banks have been colluding to short specific stocks in the market.
The fed has opened investigations looking into these serious issues.
Word is spreading on Twitter and Reddit and BlackRock and Citadel are responsible for the massive selloffs in the crypto market too.
Deeper due diligence is being done on this matter.
Citadel or not, coordinated attacks on securities is something the government should be taking seriously.
Will stocks and crypto bounce back?
It’s difficult to look ahead when the markets are bleeding, after all you are seeing your net worth drop quicker than it took for it to reach new heights.
If you’re worried about today’s markets, you might have been introduced to a short-term way of investing.
While certain plays could be short-term trades, majority of the market tends to be a long-term speculative game.
We bet that the companies we’re investing in will do great over the span of 10 years or so and let the markets go through the ups and downs, at least in the case of the stock market.
Crypto has and will always have greater potential than it has previously seen.
And crypto heads know this.
Is this the end of the stock and crypto markets?
What we’re seeing today has happened several times over the course of both markets.
After a climb, there’s always some setback that scares investors momentarily.
But if there’s something we can always learn from historic patterns, it’s that stocks and crypto have always gone right back up and set even bigger all-time highs.
Is now the perfect time to buy?
It seems both stocks and crypto are having a difficult time finding a bottom.
And trying to time it has always proven that no one can time the markets perfectly.
Searching for a good entry point could just as likely end up hurting you if the markets were to suddenly go through a reversal.
Skilled long-term investors know that when the markets are red, you buy and hold.
Because the price of securities always goes up after a dreadful period of nonstop downtrend.
The upcoming reversal will have you wishing you’d have stocked up on stocks and crypto today.