Crypto vs GME/AMC vs Evergrande in the Last 3 Months
A 3 month chart of the returns as a side-by-side comparison. That red line slowly sinking into nothingness is Evergrande, the lines in the middle are GameStop, AMC, and a random ETF I found on the real-estate market here in the US.
How the Evergrande crash will affect the US markets is yet to be seen (it'll probably take at least a business cycle or 2 before the effects of it show up here) but we do know that it will be negative, potentially recession-inducing.
As you can see, as the real-estate market dips, crypto is actually doing better, not worse. People liquidating their assets in China may have lead to the runs that we see today -- and right now where the interest rates of banks are low, crypto is the only asset that makes any sense if you want any sort of reliable return.
If this trend continues, we could see a jump in crypto prices like never seen before. Crypto is also what you call a "inflation friendly" asset because it's not beholden to supply chain issues like other assets are so it's more likely to adapt to economic conditions much faster -- at the very least, it will be affected differently.
But the important thing to pay attention to for the #crypto folks is how this is talked about in public -- if you notice, about a month ago crypto and #blockchain markets have taken a slight hit -- but the media around then started publishing articles how Bitcoin and Ethereum was "tanking" along with the real-estate market, due to Evergrade scares. This is what's called "cherry picking" your data set, since the overall trends show that the two things obviously don't correlate.
Don't get caught up in other people's problems, other people's fears, in other words. Misery loves company, after all. Crypto is in for some good times ahead, I'm pretty sure of it now.
How the Evergrande crash will affect the US markets is yet to be seen (it'll probably take at least a business cycle or 2 before the effects of it show up here) but we do know that it will be negative, potentially recession-inducing.
As you can see, as the real-estate market dips, crypto is actually doing better, not worse. People liquidating their assets in China may have lead to the runs that we see today -- and right now where the interest rates of banks are low, crypto is the only asset that makes any sense if you want any sort of reliable return.
If this trend continues, we could see a jump in crypto prices like never seen before. Crypto is also what you call a "inflation friendly" asset because it's not beholden to supply chain issues like other assets are so it's more likely to adapt to economic conditions much faster -- at the very least, it will be affected differently.
But the important thing to pay attention to for the #crypto folks is how this is talked about in public -- if you notice, about a month ago crypto and #blockchain markets have taken a slight hit -- but the media around then started publishing articles how Bitcoin and Ethereum was "tanking" along with the real-estate market, due to Evergrade scares. This is what's called "cherry picking" your data set, since the overall trends show that the two things obviously don't correlate.
Don't get caught up in other people's problems, other people's fears, in other words. Misery loves company, after all. Crypto is in for some good times ahead, I'm pretty sure of it now.
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