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March 23, 2018, 03:44:50 AM |
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While some people are expecting monies will come into cryptos when stock markets tank, I see the opposite effect is also possible. The large investment funds actually are not scared of stock market downturn as they normally hedge their positions and among the first movers to sell. The fluctuation is actually helping them make more money. These funds won't pour money into cryptos during such times. Average investors, on another hand, will face the reality of shrinking net worth or even margin calls if they play leverage trades. I see little to no needs for them to switch to crypto assets too. After all, crypto assets are still at their infancy stage and don't generate revenue or profits directly. More hot money are seen in cryptos mostly when there's abundant liquidity in the money market. Now with rising interest rates, money influx will be dwindling along the way.
Hence, I'm not too optimistic about money inflow in the short to mid term. A long bear market or at least consolidation like in 2014 is a very possible scenario.
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