The Trader Top 9: What Happens When Markets Get Sick?

Welcome to the inaugural edition of the Trader Top 9, a new newsletter from Cove Markets.

The Theme of the Week

Fears of disruption from the Coronavirus are finally catching up to markets - both traditional and crypto - with implications in both numbers and narratives. Without further ado, our countdown.

The Trader Top 9

9. Before we get into the craziness, let’s look back to the simpler times of last weekend, when we just wanted to chat about a huge new blockchain and crypto report from JPMorgan…
8. …or discuss key issues surrounding exchanges like fees
7. …or celebrate news that derivatives exchange FTX was thriving and raising a huge round
6. …or even look at the wide and rampant dismissal of Warren Buffett’s critiques of the crypto industry following a (very expensive) meal with Tron’s Justin Sun
5. But no, in a week that is destined to be all about volatility and grappling with crypto in the context of larger markets, let’s start the real countdown with a big picture thread from Ikigai’s head of research Hans Hauge:
4. Of course, the notable and dominant feature of the week was a major market selloff as Coronavirus fears finally came home to roost.
Although there was *some* disagreement about causality:
3. In the crypto world, the question was about how markets were going to respond. At first, bitcoin seemed to hold its own as stocks tanked.
But...that didn’t last long
2. Some poked (reasonable) fun at the narrative flip flopping
Others had interesting takes on what makes BTC so different
1. Yet where the narrative landed for most was a return to the idea of BTC as an uncorrelated asset, rather than as some sort of safe haven.
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