Markets can experience contagion. I remember from trading futures (nee commodities) that a crash in one market tended to bleed through to others. We would always remember it as though someone who had a great position in beans would sell it out to meet a margin call in silver that should have been dumped. That is, cutting your profits to let your losses run.

In that vein I wonder how much the recent hit in Bitcoin contributed to the equities decline.

Jim Lackey comments: 

Ben K Green Horse Trading.

Bitcoin the gypsy trade
Currency Rebel Commander 
Nazz Maniac Mule





Speak your mind

1 Comment so far

  1. anand on February 5, 2018 4:05 pm

    None at all …

    1) The Bitcoin market is tiny at $200bn market cap (realise you have competing coins as well). This is equivalent to a couple of large nasdaq stocks.

    2) The market is thin with many just sitting on positions

    3) Many though not all ‘investors’ in bitcoin are in that market precisely because they are financially illiterate and aren’t familiar with trading in conventional markets. They aren’t going to switch from bitcoin to equity.


Resources & Links