I think it has less to do with crypto in particular than asset inflation in general so people have a lot of cash (or equivalent value in liquid assets) to throw around. Assets that either amplify/leverage the inflation or are further out the risk/reward curve (and in many cases those may be the same) just make it that much more obvious. But maybe crypto is a the most visible example.
Thinking about it, what is the difference between someone's bitcoin going up 5x and their SPAC stock going up 5x (or the warrants even more)? Or their house doubling in value (and if they put only 20% down, that's roughly a 6x return on their leveraged investment). In any case, if they decide to convert to other assets or cash in and have some play money, it could buy some very nice cards.
So people may use crypto to buy cards or just feel richer because of their crypto holdings and buy cards with cash or other assets, but I think that's symptomatic of something larger.
Quote:
Originally Posted by sportscardpete
Both cards and crypto fell in February/March, and only crypto has rallied back to new highs (I am solely basing it on the cardladder50 index, which skews modern).
I don't think the two markets are as related as people think.
|
I think you are correct. Personally, I think crypto has value beyond a marker/play on asset inflation and own some bitcoin and ethereum. If that's correct, then we'd definitely expect more long-term divergence (or at least less correlation) of crypto and card prices.
It will be interesting to see where card values go if the Fed ever really removes its extraordinary asset support.
PS: Darn, Paul beat me to it and more succinctly.