How much contagion will the cryptocurrency bubble popping create in the greater markets?
As noted last month the bubble had reached $800 billion market cap, about 1/3 the size of the dot com bubble.
However, the SEC didn’t allow planned ETFs to proceed and regulators started cracking down which limited the bubble’s potential spread.
The greed that drove the bubble has quickly shifted to fear as many people undoubtedly got wiped out investing money they didn’t have. Others have had to shift market investments to cover losses and still others may now be fearful that we’ve had far too good of a run in the markets for far too long.
So the question now is, how much contagion will the collapse from $800 million create in the greater markets? If significant, what impact will that have on Bermuda’s attempt to recover its economy?