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What I cannot understand is how the crypto market is supposed to be looked at in the context of central bank policy. Stocks are businesses, businesses can be un
by neom 3y ago
What I cannot understand is how the crypto market is supposed to be looked at in the context of central bank policy. Stocks are businesses, businesses can be understood in the framing of the economy, and inference can be had as it pertains to stocks (and collections of stocks) regarding that particular business and particular central bank levers. BTC and the like do no have these connections, so why does crypto even care? How should I be thinking about this?
- wmf 3y agoThere are narratives like lower interest rates -> more money circulating -> more speculation -> crypto goes up. Or higher interest rates -> crypto goes up as a hedge against inflation. This still leaves you the problem of deciding what model to use.
- stranded22 3y agoIt’s about liquidity in the financial markets- lower interest rates means people earn less when the money is in a back. So, they are open to speculation outside of normal banking system. It is also whales playing games too though