In this post I will first present basic financial news data of these days, then I will share my personal reflections:
First, we came across a technical move made by some young Reddit users (Wallstreetbet) with certain stocks (most famously, Gamestop), on which several Wallstreet shareholders were betting downward. Such a strategy (technically called a short squeeze) caused the stock to become overvalued, thus forcing those who were waiting for it to fall to buy shares to avoid further losses, which further boosted its price.
To prevent retail investors from continuing to buy these shares, prestigious brokers such as Robin Hood, removed the stocks involved from their search engine, which is foul play, as they were directly manipulating the market.
In another scenario, but related to all of the above, yesterday we encountered an astronomical rise of the dogecoin cryptocurrency, almost 800 %. Which was influenced precisely because the Wallstreetbet youngsters were talking about it.
Now my thoughts on the matter:
We must be attentive to market movements and the fundamentals of them, because, sometimes they are like those we have experienced these days: simple, although orchestrated, manipulation, therefore, we must always investigate where we are going to invest our money, to see if there are solid foundations and are not just rumors.
Speaking of rumors the closest case to the cryptosphere is dogecoin: a cryptocurrency with a very low volume that could not even cover the high demands of the whales yesterday, that's why its price inflated so much. Personally, I would not take it as a serious investment but as a sporadic use, as some traders and/or investors did with its last move.
Definitely, blockchain and cryptocurrencies are here to stay, because actions like Robinhood's exchange demonstrate the lack of transparency and the dangers of most of the centralized entities we have today.
