Are Stocks Laggingly Following Cryptos?

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Just days after cryptos crashed, wiping out billions, stocks are seemingly following the same trajectory with Dow down another 2% today, other stock markets following.

That’s pretty much nothing to us in this space, with 2% crypto movements not even noticeable, but in turtle stocks it’s a pretty big deal.

“Dow falls 500 points as it heads for worst week in 9 years,” CNBC shouts. “Stocks plunge,” says Business Insider. And that’s just the two headlines we lazily found. Undoubtedly there are plenty others shouting the world end is nigh.

Dow’s sort of crash

That chart looks quite a bit familiar to us in this space. There is a little relief bounce with the small green candle, then pretty much panic.

All gains since November have been wiped out as complacent traders are slapped. Bet they thought it could only go up, then got all exuberant, with bulls parading around. Yawn.

Cryptos did all that already. And they did so few weeks ahead of grandpas. See if you can tell any difference between the two charts, minus the advanced time function.

Eth price action

That’s eth. A bit more volatile, more nimble, with everyone reacting quite a bit quicker because it’s their money rather than college kids handling grandpa’s stocks, but up to the 15th of January above, it’s difficult really to see much of a difference.

So is there a cause and effect? Or are cryptos just in the future? Did cryptos crash stocks, or did cryptonians just react quicker?

We don’t know the answer, but there is clearly a correlation here, at least for now. Stocks and cryptos have, at least for a year, been moving in unison.

The two, of course, have a lot in common. They both are driven by herd mentality which exuberances or depresses too much, they both don’t really have to follow fundamentals, at least for a period, they both are somewhat artificial; more, at times, based on what everyone thinks others think than any proclamation of truth.

They both are, at times, riddles with scams or other forms of cheating, with Enron being a prime example and the banking collapse an even bigger one.

With the only potential difference being that one of them, cryptos, are a lot faster, because they are a lot smaller than the $90 trillion stock market at its height, compared to the $400 billion cryptos market.

Current crypto and stock prices.

And, arguably, stocks are a lot less accessible. It certainly takes far more time to call your college kid broker and tell him to sell or buy and then get back to him in an hour or  a day and tell him take whatever position, than just logging into some site and doing it yourself pretty much instantly.

But the game is, ultimately, the same. We just do it better in this space because we are not centuries old, like the stock market, so we can operate in this century and not be stuck at a time when fax machines were the mind blowing invention.

And because we are not chained by regulations written when only rich property owners could vote, we can also enjoy more competition, which ultimately means more fairness for ordinary people.

So we have a crash, a sideways, a recovery, then have a bull race, all in months, while enjoying seeing grandpas doing the same in slow motion.

Keep up grandpa, or just go to bonds man, sit comfortably with your ballooning gov debt at home. I’m… grandpa!!! Rocket leaving with a tesla on it!

The best part is that neither in crypto nor in stocks has anything changed. In fact, the economy is booming. But herds being herds, they herd. So, keep herding stock turtles.

 

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