r/stocks • u/2PhotoKaz • 2d ago

Broad market news Market getting smashed, where is cash going?

Clearly a massive sell off is happening, are traders (big and small) just sitting on cash once they sell? Gold, the bastion of safe heavens, is also getting hit.

Bonds? Simple interest? Are any sectors up in this mess?

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u/fuji_ju 2d ago

My thoughts on this:

BTC is a global commodity and not a US-based asset. By its design, it cannot be politically controlled by Trump, and cannot be tariffed. Unlike bonds, it cannot be defaulted on as it is not directly impacted by the Fed and Treasury department policies. Unlike Gold, it cannot be physically confiscated nor is there uncertainty on the available reserves and supplies (public ledger). The finite supply and telegraphed inflation rate on it also protect it from dilution.

As such, it's not half bad as a safety flight asset class. Note that I only talk about BTC. Everything else could go to zero and I wouldn't be surprised.

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u/draculabakula 2d ago

It can't be politically controlled but it can certainly be politically influenced to a point where it will lose most of its current value.

Trump isn't going to do it but there but certainly be heavy taxes put on any crypto exchange and the goverment could certainly shut down all the current legally recognized crypto platform.

There isn't really any indication that crypto is going to have any utility beyond the niche legitimate uses it currently has so it's only value is in it continuing to being easily tradeable.

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u/fuji_ju 2d ago

Yeah but he could also easily nuke the dollar and the stock market and default on treasury bonds... It's about risk assessment and management.

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u/draculabakula 2d ago

Yeah but he could also easily nuke the dollar and the stock market

Yep, half the country fucked around and found out that the president certainly can nuke the stock market

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u/legible_print 2d ago

Trump could totally announce more aggressive crypto taxation/exchange regulation. After his crypto scheme, I honestly don't trust him not to screw it up.

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u/fuji_ju 2d ago

Sure, he could announce anything and everything, but that's why I point out that this is not a US asset.

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u/debacol 2d ago

Until the sun decides to hug the earth with a Carrington Event.

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u/fuji_ju 1d ago

Yeah well BTC won't be making the top of the list of things to worry about then...