The fall of US stock indexes did not lead to a massive influx of investors into the cryptocurrency market, and the reasons behind it were investigated by Asiacryptotoday.
The collapse with key indexes of the US stock market (S & P 500, Dow Jones and NASDAQ) which began on October 10 and continued on October 11, ended Friday with a market correction. Tom Lee was right prior to become a leading cryptocurrency expert at CNBC: he worked for JPMorgan for almost 10 years and was buying/selling securities. He recommended acquiring depreciating stocks of US companies.
In this regard, he provides accurate forecasts in contrast to forecasts about the growth of the cryptocurrency market, voiced at the May conference of Consensus in 2018.
However, the current correction of the indices in the stock market has also hurt cryptocurrency investors. Many believed that any cataclysm in the economic and financial sphere, for example, hyperinflation, devaluation or falling stock indices, would prompt investors to turn to cryptocurrency. In fact, the plunge of US indices did not lead to a rise in prices of most cryptocurrencies.
Why did it happen so? Wall Street traders who carry out cryptocurrency operations through OTC (over-the-counter trading platforms) feel quite comfortable leading Bitcoin to new lows.
Stocks Down while crypto is up?
Operating through OTC is a great opportunity for traders to buy cryptocurrency from early investors who have panicked.
Institutional investors have no reason to bring new values of Bitcoin in order to acquire coins at the lowest prices possible. In a meanwhile, investment banks and funds from the traditional world of finance can ruthlessly criticize cryptocurrencies for “the lack of reliable storage services” and so on.
However, they know the real price of a limited offer, which confirms the words of John McAfee that the last bitcoin will cost several million dollars.
Many miners continue to actively sell Bitcoin, helping the course to go down a couple of hundred dollars, which scares the early investors. Therefore, it cannot be expected that the emergence of “traders” fleeing the effects of financial bubbles on Wall Street will begin to raise the price of Bitcoin and the capitalization of the cryptocurrency market as a whole.
When cryptocurrency prices start rising again, the world will see that the majority of Bitcoin holders are Goldman Sachs and other giants of the global investment community, and not ordinary people.