December 4, 2021

I don’t know if history shows this to be true but here’s my theory on why this makes sense, especially as more and more people buy into crypto and when stocks take a plunge. 

When stocks retreat significantly it triggers buy orders when they get down to a certain level. Those orders use cash investors have liquid for just such a scenario. Since that cash needs to be replenished one of the ways to do that is to sell crypto. When investors sell crypto to replenish their cash positions it drives down the price. 

A “fun” test of this theory may be to short some crypto after the next stock market tank but obviously that’s a risky proposition. Good luck and Godspeed! Let me know how you do. ✌️