Re:Crypto crash deepens, stocks slip
by lhorie on Wednesday May 19, 2021 @10:49AM
(#27209420)
> If $SPY dropped 40% we'd all call it a crash
SPY is highly diversified though. The crypto market is known to move in tandem w/ BTC swings.
A 40% swing may seem large compared to SPY's usual 1-2% swings, but consider that other crypto coins frequently swing by 10-50%. For example, MATIC was up some 47% just yesterday. The reality is that crypto is highly volatile; it doesn't make sense to compare its volatility to ETFs or REITs or other conservative vehicles.
Some analysts were even expecting a correction, saying that a BTC drop to 30k would still be within expectations...
SPY is highly diversified though. The crypto market is known to move in tandem w/ BTC swings.
A 40% swing may seem large compared to SPY's usual 1-2% swings, but consider that other crypto coins frequently swing by 10-50%. For example, MATIC was up some 47% just yesterday. The reality is that crypto is highly volatile; it doesn't make sense to compare its volatility to ETFs or REITs or other conservative vehicles.
Some analysts were even expecting a correction, saying that a BTC drop to 30k would still be within expectations...