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Author Topic: Fed and other central banks rate and taking away repo markets volatility  (Read 122 times)
325btc (OP)
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February 04, 2022, 11:10:13 PM
 #1

Just they not approved ETF spot only futures to keeping markets volatile.
We know that both of them: short and long positions taking a lot money.
If the central banks will rise the rates its dangerous for sustaineble economy and its bad for the markets.
If central banks will decrease the money supply we lose volatility.
Volatility is main thing what you need to make money on the markets.
If there is no money then no funds to maintain the shorts and long positions.

Its really bad that central banks do the decreasing the money supply we can cope with inflation but if the markets volatility is in danger then the asset prices stay just same and they wait until right time and economic recression a.k.a "great depression"  then they will approve SPOT ETF-s and spot ETF gives btc price stability.

We have big problem the current central banks policy will kill all the good price volatility the nice price up and down.
As we know volatility takes money and right now fed doing daily repo in order to maintain liquity on the markets but if all this repo money is gone and rates rise then traders stock and crypto both of them are in big trouble.

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February 05, 2022, 04:26:38 AM
 #2

Your whole argument is based on one thing I disagree with:

If central banks will decrease the money supply we lose volatility.

That is not the case, and anyone who has followed the markets will have seen that we have had recent downward volatility. If central banks stop printing so much what happens is that assets stop inflating so much, and probably go down, as has happened recently with the Fed's simple announcement, but there need not be less volatility.

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325btc (OP)
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February 05, 2022, 07:15:48 AM
 #3

Your whole argument is based on one thing I disagree with:

If central banks will decrease the money supply we lose volatility.

That is not the case, and anyone who has followed the markets will have seen that we have had recent downward volatility. If central banks stop printing so much what happens is that assets stop inflating so much, and probably go down, as has happened recently with the Fed's simple announcement, but there need not be less volatility.

I dont agree with with you.
Maintain short and long positions takes a lot cash.
Look at btc price on sunday its stable as sunday there is less money on the markets.
Yes it can drop to low but even then it can stay stable.


Fed owns the full explanation to traders and btc owners im sure everybody want to know whats going to happening next ?
Tytanowy Janusz
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February 05, 2022, 03:51:14 PM
Last edit: February 05, 2022, 04:22:44 PM by Tytanowy Janusz
 #4

Its really bad that central banks do the decreasing the money supply we can cope with inflation but if the markets volatility is in danger then the asset prices stay just same and they wait until right time and economic recression a.k.a "great depression"  then they will approve SPOT ETF-s and spot ETF gives btc price stability.

We have big problem the current central banks policy will kill all the good price volatility the nice price up and down.
As we know volatility takes money and right now fed doing daily repo in order to maintain liquity on the markets but if all this repo money is gone and rates rise then traders stock and crypto both of them are in big trouble.

First of all. Creating good volatility so that gamblers can lose money and few good traders can earn is not something that should be a priority while talking about economy and money policy. And amount of $$ you have is not equal to amount of wealth you have. High inflation can lead to problems in economy (wage problems, currency instability, interrupted supply chains, unprofitability of companies that were previously profitable only because of currecy dump) which affect in lesser amount of goods available to buy, impoverishment of the society, deterioration of the quality of life, quality of health care. Than hyperinflation and zimbabwe 2.0. But who cares. the most important thing is that few gamblers can gable using high volatility.

But back to volatility. I agree with Poker Player. Change in monetary policy will create volatility (dump) rather than reduce volatility.
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February 06, 2022, 12:14:52 AM
 #5

Its really bad that central banks do the decreasing the money supply we can cope with inflation but if the markets volatility is in danger then the asset prices stay just same and they wait until right time and economic recression a.k.a "great depression"  then they will approve SPOT ETF-s and spot ETF gives btc price stability.

We have big problem the current central banks policy will kill all the good price volatility the nice price up and down.
As we know volatility takes money and right now fed doing daily repo in order to maintain liquity on the markets but if all this repo money is gone and rates rise then traders stock and crypto both of them are in big trouble.

First of all. Creating good volatility so that gamblers can lose money and few good traders can earn is not something that should be a priority while talking about economy and money policy. And amount of $$ you have is not equal to amount of wealth you have. High inflation can lead to problems in economy (wage problems, currency instability, interrupted supply chains, unprofitability of companies that were previously profitable only because of currecy dump) which affect in lesser amount of goods available to buy, impoverishment of the society, deterioration of the quality of life, quality of health care. Than hyperinflation and zimbabwe 2.0. But who cares. the most important thing is that few gamblers can gable using high volatility.

But back to volatility. I agree with Poker Player. Change in monetary policy will create volatility (dump) rather than reduce volatility.

And thats they will approve spot ETF right before everything collapse.
Spot ETF will hold the price of asset stable.
But yes we gona say bye bye to great volatility
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February 06, 2022, 07:23:23 AM
 #6

And thats they will approve spot ETF right before everything collapse.
Spot ETF will hold the price of asset stable.
But yes we gona say bye bye to great volatility

"Everything collapse" - stocks, reits, founds, companies overexposed to debt ... but not BTC ... "their" plan is to secure BTC before dump (not anything esle) by approving ETF ... you really think that?

And yet again you are making a fundamental mistake in your reasoning on which you base your statement. ETFs approval will have close to zero impact on price. Its not 2017 anymore. Retail investors never had problems with investing in btc, institutional investors already have plenty of ways (for example CME). Microstrategy and tesla bitcoin purchases are great prove of that. ETFs will only be another way. My broker that I use for investing in stocks, bods, Reits, ETFs all around the globe (EXANTE) already have 88 crypto available to invest by CFDs. Tell me more how ETFs will help BTC by reaching wider audience. Its not 2017 we are in 2022.
325btc (OP)
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February 06, 2022, 12:16:28 PM
 #7

And thats they will approve spot ETF right before everything collapse.
Spot ETF will hold the price of asset stable.
But yes we gona say bye bye to great volatility

"Everything collapse" - stocks, reits, founds, companies overexposed to debt ... but not BTC ... "their" plan is to secure BTC before dump (not anything esle) by approving ETF ... you really think that?

And yet again you are making a fundamental mistake in your reasoning on which you base your statement. ETFs approval will have close to zero impact on price. Its not 2017 anymore. Retail investors never had problems with investing in btc, institutional investors already have plenty of ways (for example CME). Microstrategy and tesla bitcoin purchases are great prove of that. ETFs will only be another way. My broker that I use for investing in stocks, bods, Reits, ETFs all around the globe (EXANTE) already have 88 crypto available to invest by CFDs. Tell me more how ETFs will help BTC by reaching wider audience. Its not 2017 we are in 2022.


Worse thing is to argue about "sure" by manners about subject u got no idea.

ETF FUTURES and Spot ETF are different things.
Etf futures gives good volatility price swings up and down up and down.
Spot etf is whole different story.
Everything will be roled out at the right time clearly we see that world richest people want to secure their wealth by owning crypto and btc everything else will collapse.
Why else they want to approve spot etf for btc
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February 06, 2022, 12:24:39 PM
Last edit: February 06, 2022, 01:10:48 PM by Tytanowy Janusz
 #8

Worse thing is to argue about "sure" by manners about subject u got no idea.

ETF FUTURES and Spot ETF are different things.

It does not matter. Anyone who wants to have exposure to bitcoin price movements have planty of ways of doing that. One more option wont change anything.

Etf futures gives good volatility price swings up and down up and down.
Spot etf is whole different story.

Both price is based on underlying asset. So both have the same price action "swings up and down up and down". The only difference is that one of them is backed by real bitcoin which gives you adventage when you expect market to do extreme stuff  that will crash futures market (black swan event) but isn't hack on ETF provider even more possible? ... and you expect volatlility to go down don't you?

And as far as I know microstrategy owns real bitcoin ... not bitcoin futures. How dare they buy it without approved ETF?

Retail investors use spot crypto exchanges for last 12 years
Institutional investors buys without approved ETF
even a country (Salvador) officially buys bitcoin ... without approved ETF

So who needs approved ETF to buy bitcoin? it's not groundbreaking event. It's just another option.


Everything will be roled out at the right time clearly we see that world richest people want to secure their wealth by owning crypto and btc everything else will collapse.
Why else they want to approve spot etf for btc

BTC EFt is a topic that is with us for at least 5 years. FED is continously saing no to anyone who asks .. but after months of "investigation". If "world richest people want to secure their wealth by owning crypto and btc everything else will collapse. Why else they want to approve spot etf for btc " would be true ... than BTC etfs would be approved 5 years ago so that whales could buy at 1000$ instead of 30 000$.

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February 06, 2022, 02:35:01 PM
 #9

I think the word he is looking for is liquidity. The more liquidity we have the more easer it gets to sell and re-buy stuff around the crypto market. Volatility is entirely different thing. It is aspect ratio of how much volume is being injected and pulled out of the market at any given time. For crypto when we say it is highly volatile that means there is simply no limit on how much coins are being bought and sold! Due to this it creates huge marginal differences all the time.
This difference is created because there is "direct" control on money influx. Believe me the OP is all about liquidity rather than volatility.

Plus, central bank has nothing to do with this. Its sum of many things and not just one bank printing the money for nation.
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February 06, 2022, 08:47:40 PM
 #10

I think the word he is looking for is liquidity. The more liquidity we have the more easer it gets to sell and re-buy stuff around the crypto market. Volatility is entirely different thing. It is aspect ratio of how much volume is being injected and pulled out of the market at any given time. For crypto when we say it is highly volatile that means there is simply no limit on how much coins are being bought and sold! Due to this it creates huge marginal differences all the time.
This difference is created because there is "direct" control on money influx. Believe me the OP is all about liquidity rather than volatility.

Plus, central bank has nothing to do with this. Its sum of many things and not just one bank printing the money for nation.
That is right, liquidity is the reason how we could buy and sell without disturbing the market too much, volatility is when there is low level liquidity and even a single move could impact it. We all know there are tons of small cap coins out there where 10 million dollars could make it go up 2x or drop 50%, that is the baseline, there are thousands who would go 1000x higher with 10 million dollars as well. But the amount of coins that won't budge more than 0.1% with 10 million dollars worth of purchase is probably just 100, probably less.

This is why liquidity is important, it allows you to not really have a big change with that kind of low amount (low for the market, big for us).

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February 07, 2022, 07:02:22 AM
 #11

The central banks currently aren't decreasing the money supply.They are just talking about decreasing the money supply.
You are assuming that the financial markets are totally controlled by the central banks and any decision made by the central banks can make or break the financial markets.I can't agree with this,even though the big central banks have huge influence over the markets,they don't have total control.
Price volatility isn't always good.Having tons of liquidity on the markets isn't always good as well.
If the central banks want to fight inflation they will have to reduce the liquidity on the markets.
I don't really think that the stocks prices are "in trouble".They are overvalued,so going back to a lower value isn't necessarily a bad move.

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February 08, 2022, 06:04:15 AM
 #12

Its really bad that central banks do the decreasing the money supply we can cope with inflation but if the markets volatility is in danger then the asset prices stay just same and they wait until right time and economic recression a.k.a "great depression"  then they will approve SPOT ETF-s and spot ETF gives btc price stability.

Just removing the bitcoin aspect from the statement. Now tell me a good way to fight inflation without increasing the interest rate! I am all ears!

If the interest rate raises, it will suck up the excess money flow from the market which will affect consumer spending. When consumers will spend less, the demand will come down. When the demand comes down, it will bring down the prices. It wouldn't give stability to the prices.

The depression will only follow if the Central Bank doesn't decrease the rate at the right time based on various parameters like consumer inflation, consumer spending habit, industrial output and indirect tax collection. These are the indicators based on which a central bank will decide a correct time to reduce the interest rate again after sucking up the excess money from the market.

If you know of any better ways to fight inflation, do let me know.

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