Today brought us one of the most volatile days in crypto history. The wrong way of course, before it went right. Many investors panic as usual, and then turn to the media to gain what them deem to be “actionable intelligence.” This rarely works in most cases.
Looking back at stock market cycles, we generally see the panic that begins to snowball it’s way into a full blown fallout. 1929, for example, brought many to their knees, then saw them selling physical assets for pennies on the dollar. Of course, the good thing back then was that the news had very little effect on the physics of the market considering it was at least a day old, if not more. It will generally also locally scouted news, so it was probably so generalized that it didn’t matter at that point.
What did matter was the way millions of people lost everything they owned. Literally. Most speculators always sell at the bottom. The concept seems simple to avoid, but lets fastforward from the dusty black and white era that birthed the modern day market and look at what’s happened more recently.
In 2008, we all saw the start of the mortgage crises. Like a wedding, we saw the beginning at cocktail hour. Swarms coming into the market as they had. The market ran up, we all had a laugh, a dance, and then there it was….the “I just lost my house” moment.” Aha. Here come the waterworks. Time to sell the Mercedes for a few thousand bucks.
The crazy thing is: did anyone go back and think about what the news told us?
Let’s revisit this question in another light to get to the main event: the LOLS. How could we be laughing, and out loud of all things?
The new era, with no long term historical data, has been the coin market. With the emergence of high returns, every ones getting rich on a daily basis…..and the laughter only begins.
Volatility at any point of history brings the wedding bells back to light.
Let’s break it down.
We’ve all been riding the coin market. Bitcoin, altcoins, whatever. The party gets crazy. Then, like a swift kick, volatility ensues. People panic, they sell off, and here comes the swing back up. So we’ve had joy, weve cried, and we’ve continued on.
Here’s the kicker: what about what the news told us all to do? Did we Listen?
You’re damn right. Every single one of us, and it did us all no favors. Why?
While we were all on the buy and HODL scene, news and media have us no indication of what was going on (except the ICO Journal, of course) and allowed us to dance our way into the freefall. But if we replay the wedding tapes, we find the LOLS. They were everywhere, at every moment of the event. News follows the action, and now we can all see the proof. And it’s still here.
Let’s take today’s mess, keeping in mind this comes from half a day of choppy seas. Good ol’ “Black Friday” of 2018 at the crypto market.
CNBC’s Fast Money (although we dearly love all our favorite guys and gals at CNBC*) had a segment on how to buy Ripple (XRP) at $2.50…..and followed it up later on in the day on how to SELL Ripple at 74 cents. Seriously?
ROFL*
After laughing out loud for so long, it seems that we all need to do a better job at finding “actionable intelligence.”
It might mean we don’t have to give all our luxury goods away to the lowest bidder.
