Steve Chiavarone says that Bitcoin is the First Sign of Greed in Great Recession

Recession cannot be avoided in any market where there is an accelerated trade. The macroeconomic recession is the same in level with cryptocurrency recession, but the former shows a sign of high unemployment a high inflation whiles even though the cryptocurrencies market does not show these, it shows something intangible in the market. Steve Chiavarone, in an interview, labeled the cryptocurrency investors as “greedy” who only joined the train because it was moving, but are in fear for its market pullback.

He said to reporters that this is the first greed after the great recession drawing the equity market to move along. It is the first sign of greed since the Great Recession,” Chiavarone said this week on CNBC’s “Trading Nation.” “It’s indicative of rising risk appetites which will drive equity markets higher almost regardless of what happens with bitcoin.” When bitcoin crossed over to the triple-digit value, a lot of investors joined it to hit the jackpot. When it earlier hit $9000, there are people who went the extra mile to even sell their properties to invest in them. This followed by most the cryptocurrencies such as Digibyte.

“Investors wanted to be on the roller coaster in the ’90s. They wanted high returns. They didn’t mind volatility,” Chiavarone said. “The Great Recession put the fear in a lot of folks and they wanted to go on the merry-go-round Folks really want to get on that risk trade,” he said. The cryptocurrency trade has also been likened to the popular Tulip Mania which at a point became so variable that every household longed to have a feel of. After a time of dominance, the tulip mania busted. Bitcoin can drop but can also rise again as investors believe it is here to stay.

The Incidence of

Chiavarone cited the incidence that led to the shut down of and used the same analogy to predict the risk in trading in Cryptocurrencies. One major difference between the two is that was not a decentralized company unlike most of the digital currencies that run beyond the control of any government. As the former CEO of, Julie Wainwright admitted to having considered a shut down instead of running on a bankruptcy, it is interesting to imagine the CEO of Bitcoin to think like that. Some investors think that Bitcoin operation is different from what some experts normally compare it to.

“When you look at a pick-up in economic growth, the full impact of the tax reform boost, [and] the earnings number, you’ve got to pull your target up to match it,” Chiavarone said. “A lot of strategists falling over themselves to try to figure out what that right earnings number is,” he added. There is a school of thought that has said that Bitcoin thrives on speculations, but Tom Lee has said that Bitcoin does not thrive on speculation.To them, there is nothing that seems to drive the price so high than an invisible force that can cause a fall in the market and a rise in the market.

Investment is About Returns

It is likely that an investment into any substance that has the tendency to rise in the future is also an act of greed. Investment is all about rationality. Investors of any token do so just to get a higher profit.  In respect to this, the term “greed” as used applies to every investor. In fact, it is normal for investors to jump off the train when it has shown a sign of an accident. The value of the cryptocurrency is not dependent on these forces. The market faced recession due to an encounter with a stronger force of regulations and fear.

The recent pullback in the market has shown the real underlying belief of the so-called bitcoin addicts. Some have in fear taken out all their funds thinking that this is the time of the burst. This has called for several terms used to describe them. It is also clear that a lot of people joined the online investment because the currency was rising,  and they had no real faith in it.

Bitcoin has currently taken back a position to finish what it started. Its market cap has currently surpassed the $200 billion. Time will tell whether it will reach the $100,000 price mark despite the fear of burst.

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