(Note: this is completely SPECULATION!)
The overall market for the Financial institutions has been growing steadily since the housing crash in 2008.
The United States FED has increased the money supply exponentially within the last year. The money supply goes to the banks first where they get to spend it before it really enters the market. Personally I think that the financial sector has been lying to themselves that this growth can keep climbing without fail. However, once normal Americans who have to bear the burden of the ever increasing debt "ceiling" realize that inflation is hurting them more than helping them they will spend less. That along with the Crypto market that is booming will persuade more middle class Americans to invest in Crypto because it's always going up up up!!
Crypto is in a bubble, all the signs are there, we don't know when it will pop (possibly soon) but when it does I think the ever increasing hysteria of crypto is creating a similar situation to the 1929 financial crisis. Banks are giving more loans out at cheap rates. People are buying Crypto on Margin and there is an overall Idea that this uptrend can continue forever. <- that's what they thought in 1929. Once Crypto does crash, people will lose a lot of money, and all the loans and all the margin will have to be paid. They will have to pull this money out of their stocks and the banks who gave these loans will end up hurting big time as more people file for bankruptcy.
The Crypto crash will effect the Stock market and we will see a huge pull back.
I think Crypto in general is here to stay, but most people are buying Crypto to "get rich quick" instead of buying crypto based on the underlying value of it *cough* DOGE COIN *cough*.
Make sure you are not holding the bag when it does. Get out just before the top because once it does start plummeting, you may not be able to get out in time.
good luck.
The overall market for the Financial institutions has been growing steadily since the housing crash in 2008.
The United States FED has increased the money supply exponentially within the last year. The money supply goes to the banks first where they get to spend it before it really enters the market. Personally I think that the financial sector has been lying to themselves that this growth can keep climbing without fail. However, once normal Americans who have to bear the burden of the ever increasing debt "ceiling" realize that inflation is hurting them more than helping them they will spend less. That along with the Crypto market that is booming will persuade more middle class Americans to invest in Crypto because it's always going up up up!!
Crypto is in a bubble, all the signs are there, we don't know when it will pop (possibly soon) but when it does I think the ever increasing hysteria of crypto is creating a similar situation to the 1929 financial crisis. Banks are giving more loans out at cheap rates. People are buying Crypto on Margin and there is an overall Idea that this uptrend can continue forever. <- that's what they thought in 1929. Once Crypto does crash, people will lose a lot of money, and all the loans and all the margin will have to be paid. They will have to pull this money out of their stocks and the banks who gave these loans will end up hurting big time as more people file for bankruptcy.
The Crypto crash will effect the Stock market and we will see a huge pull back.
I think Crypto in general is here to stay, but most people are buying Crypto to "get rich quick" instead of buying crypto based on the underlying value of it *cough* DOGE COIN *cough*.
Make sure you are not holding the bag when it does. Get out just before the top because once it does start plummeting, you may not be able to get out in time.
good luck.