Alright so I saw everyone talking trash about Mark Zuckerberg and Facebook and whatnot. I saw reverse-Cramer being upheld once again... apparently there's even a video of him admitting what a disaster it was?
Literally sounds like he was crying off-screen minutes before.
Just kidding he totally was crying
Haha wow. Down bad, friend?
Been in this business for 40 years and I did a bad job.
Oh man... listen to the people he's interacting with.
Trying to reign it in but he can't keep it together.
I'm trying to not be callous, but I seem to be struggling.
Complete meltdown.
Especially if you know what Cramer is like.
Just very high energy and seemingly optimistic.
Not today.
In any case...
When I actually looked at how much META/Facebook had lost I was shocked!
WWWWHHHHHAAAAAAAAAT!
24.5% IN A DAY? LOL... WUT?!
That's full on crypto action right there.
That's no place for one of the world's biggest stocks.
Then there's Amazon.
"Only" down 4% during trading hours, but after market it just craters!
Another 20% drop of a huge stock... WILD!
Again... down 10% over a couple days.
Pure insanity.
Same story with Google
Down 13.5% over a few days, with a lot of action after hours.
Gotta love Googling how Google is doing bad.
How's that for meta?
And then we see Bitcoin down 2.5% on a day that Tech gets absolutely crushed. 2.5% for Bitcoin is a Thursday. It's weird when the price doesn't move 2.5% or more for Bitcoin on any given day. Seems like a really good sign considering tech just got rampaged and Bitcoin is sitting there like, "Is that all?" Looks like the market is testing $20k right now for confirmation, so we'll see how that goes. In completely uncharted territory here now that we've broken out of the macro resistance.
It's important to realize that when stocks and even fiat currencies start trading in this volatile nature, the risk-on nature of Bitcoin becomes harder and harder to justify. If a top stock can crash 20% in a day, why are you not buying Bitcoin? This is the question many will ask themselves. Everyone knows it could take over a year before a company that just lost 20% overnight to make it back to breakeven. Meanwhile Bitcoin can go x10 over the same time period. As the legacy economy gets even more unstable and volatile, Bitcoin may be the only sensible option for a lot of people to park their value and ride out the storm.
And again, if you're bearish and want to wait for a lower price, that's totally fine too. Better to buy at $25k when the FED has finally officially reversed course than stress out every day that one last devastating blow is coming to wipe us all out. Let's not forget that the mythical doubling curve is basically at $50k right now. Any price around this level is an extreme discount. Doesn't really matter where. $25k?, $20k? $18k?, $14k? Doesn't really matter in the long term. DCA and call it good.
One big thing that I often forget to mention during these bouts of speculation is that Bitcoin already got massively deleveraged during the dump from $30k to $17k. UST crashing to zero hit us hard. 3 Arrows Capital imploding messed us up pretty good. The dozens of tiny exchanges that went under because of unsustainable yields didn't help either. But we've already been through the ringer, it's already happened. It can't happen again.
I mean sure, price can still go down from spot-dumping, but it can't implode from overleverage like it did four months ago. It will take a while for people to be brave enough to leverage up to their earholes again.
A lot of this points to the same outcome:
DEFLATION
You know, that thing that everyone refuses to believe is happening because prices have been going up for the last year and whatnot. Again, this upcoming Black Friday, which is less than a month away now... is going to be a thing of legend. Honestly I may need to pull out a couple thousand dollars from RUNE or BTC to capitalize on how crazy the deals are going to be. Everyone is broke; prices can do nothing but go down because people can't afford to pay them. Retail will be forced to unload their warehouses simply because they are full. Couple that with the fact that many people can't even afford a regular discount, and that's when the extreme discounts start coming into play. Better to capitulate than end up with nothing at the end of the year.
Conclusion
Tech stonks got absolutely shreked today. Yep, shreked, it's a real verb that people say! “It was known as the Gulag, if you failed, you were sent to the dungeons to work on Shrek.” Employees called it being "Shreked." It was so bad that Jim Cramer literally cried on live television. People say it was scripted but, his voice is literally cracking and his demeanor is that of a child that's just been rebuked. Great acting job if faking it!
Looks like I'm gonna get to buy that super cheap computer after all! As I've been saying for months now, inflation is only relevant to critically essential products like food and power. Tech toys are the first thing to go when people need to limit their budgets. Let the deflation begin!
It will be very interesting to see how the FED reacts to all of this. The next meeting is in a few days, after Halloween. Pretty good chance they continue ignoring all the warning signs but they are beginning to feel the pressure from outside influences. Will be interesting to see how this all plays out. Keep stacking.
Luckily, crypto is the ultimate tech, and we can see even more decoupling from the market with legacy tech spiraling downward and crypto having a completely normal day. The risk-on narrative is coming to an end. Soon™ enough crypto will appear to be the only sensible asset to own. Don't pay attention to the CBDC/regulation FUD. Crypto stronk.