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Sk8eM dUb
replied 2319d
Low FED rates = banks use leverage to pump up the stock market. Basically it's as if you bought $5000 of Bitcoin on a credit card and then sent it to Bitmex and 10X leveraged that.
replied 2319d
I see... rate hike -> USD money press slows down -> bankers making it rain in the casino/NYSE find their wads of cash are running low -> the party comes to a screeching halt. Nice.
Sk8eM dUb
replied 2319d
Right, and they're not going to want to be USD bag holders after liquidating either - they'll move into solid assets. Commodities, precious metals, aaaaaaannddd Bitcoin!
replied 2319d
Yes commodities always rise during economic turmoil. With crypto emerging as an asset class that's very uncorrelated with conventional markets I can see it being used as a safe haven.