Topic: Theory: Stocks profits soon to be dumped into crypto - page 2. (Read 227 times)

This might actually happen as we are in digital age and I believe in crypto, if we utilize and regulated right that is government eliminated scams and likes, most of the investors will go into it since they can trade their globally unlike in stock market that is limited at their place only.

I made a thread which could detail some of the key reasons behind the latest stock market decline. It could also explain some of the reasons behind bitcoin's latest decline as well:

https://bitcointalksearch.org/topic/yuan-is-crashing-after-huge-china-trade-surprise-2901643

Concerns over china's economy and what might be economic slowdown there could jeopardize future economic growth, financial earnings and tax revenue projections. This could explain the recent stock market decline: savvy investors are *pulling out* to protect their investment from what may be a lingering storm on the horizon.

There's another school of thought which says both the stock market and bitcoin declines were politically motivated. I think bitcoin's value dip was politically motivated as shown by the media making wild and untrue claims about tether to hide the degree to which btc's devaluation may have been caused by currency manipulation.

The stock market decline being politically motivated is likely untrue, in my opinion.

Economies and markets may be defined in terms of *boom* and *bust* cycles. The time to invest is when things are *booming*. Right now if concerns over china's economy are valid, we may be in a *bust* cycle. This could mean investors will take a vacation and avoid investing in markets, expecting them to contract or for growth potential to be minimal enough to not be worth it in terms of risk versus reward.

Looking at charts, it might be fair to say the price of bitcoin peaks at the end of the year near christmas(perhaps with the exception of around 2014 with the silk road Ross Ulbricht aka *Dread Pirate Roberts* crackdown and chinas ban on exchanges). I think investors might buy bitcoin towards the mid to end point of the year expecting the price to rise. That seasonal period could be the best time to *buy in* at least from a historical perspective.

Nice theory. But do we really need this money ?

We're fine with a BTC at 8000$. We need to get a price stabilization to discover new projects that will rise. Currently, the market is really boring as all altcoins are following BTC like sheeps.

I wonder would this implication be good or bad for the Cryptocurrency? Especially those small and tiny investors? If we're seeing a lot of manipulation even without the high rollers from Wallstreet what more if they join the party? What do you think guys?

After bursting the tech stock market bubble and switching to housing, they slowly reinvested in stock market (partly because of the peculiarly convenient new lenient long term cap gains taxes laws, slowly regaining trust in people investing in stocks, it grew slowly into a large bubble)... that bubble pops and now goes into crypto and makes the most insane bubble ever.  That's why we hear the recent stories of these theories of bitcoin going to 50K to 100K soon.   Unware people who don't know much about investing --dollar cost averaging, selling and buying when approprate etc-- will get suckedred in again and then they will take their profits.. they are seasoned.. taking profits on every swing.. sometimes swing over 50% in one day.  they are making incredible money since the 6th.  End of rant

Interesting how everthything was timed.. for the transition.. between the media, the feds (sec etc), wall street, rich investors.. giggle.   How severely the market crashed right before sec meeting .. then sec's support of crypto.. and the bounce up.

I bet lots of stock profits were used to set as buy orders down at the lower tiers of the support lines of the BTC and ETH charts, in antcipiation of this all.  It was enough time for the sell of stocks (22nd of january), for the ACH withdrawel and ACH deposit into GDAX (etc).

Nice theory though.. But chances are still less for the institutional investors to put in their money into it. 

This theory is not completely unlikely but there's a low chance these rich people—who are more versed in stocks—would shift to crypto which is much more complicated, in my POV. Though, I hope that would be the case; more popularity for cryptocurrency I guess...

We will only know after the fact. It's hard to come up with theories that describe such a massive system, especially trying to compare two massive systems that are extremely volatile right now.

Hrm maybe my theory is right..

https://cointelegraph.com/news/dow-jones-drops-another-1000-points-in-a-week-crypto-markets-dont-quite-follow

Uh, I'm very skeptical of this.

If even a majority of the stock holders know about crypto, they probably want to stay away from it. Everything on the stock market is much much further away from the volatility of cryptocurrencies. Plus, I'm sure that if anyone was thinking about getting into crypto (given that they knew how to purchase it with minimal fees), then they would be pretty nervous about how the recent drop went. It wasn't a pretty site for anyone, and I'm positive it scared a lot of people away.

I think there is fiat currency destruction going on right now, but it is not in support of cryptocurrency, instead it is to replace with another fiat running on distributed system controlled by corrupt people, as for how BTC price react to that, not sure what will happen

Do cost average investments?  I started doing that to help protect myself.

Stocks diving from ATHs, seems everyone is just waiting for the positive signal to pour money into the crypto markets again.
Wishing you are correct man. This crash is making me anxious.

1) The rich investors knew the crypto market was going to plunge just before the SEC meeting.
2) They sold off their stocks (down 9% or so since Jan 22) anticipating the crypto plunge
3) They now have funds available in their accounts to play the crypto market.
4) Crypto market will go to astronomical levels it has never seen before, like 100k+ for BTC.
5) Media will talk about it nonstop, and ignorant masses (like I was a month ago) will invest buying at market price
6) This will become the new bubble.  Huge one.
7) The intelligent advantaged seasoned rich traders sell off and play/milk the market daytrading (with assistance of bots & computers)
bubble pops
9) Huge transfer of wealth, yet again from the ignorant lower class to richest people.  Just like the tech bubble, housing bubble -- now the crypto bubble.

Just a thought anyways