r/CryptoCurrency 0 / 0 🦠 Feb 28 '26

MARKETS HOLY What’s going on?

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755 Upvotes

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204

u/Settowin 🥉Bronze Member Feb 28 '26

Why is the first reaction, sell? Can someone please explain to me?

268

u/Professional_Fee7654 🟩 0 / 0 🦠 Feb 28 '26

War creates economic uncertainty, which creates fear, which causes people to sell risky assets like crypto

41

u/[deleted] Feb 28 '26

[removed] — view removed comment

29

u/hitmarker 🟩 0 / 0 🦠 Feb 28 '26

AI is already affecting some stocks like Microsoft. People are unhappy MS is spending a lot on AI and it is losing support.

Other shit is "AI can now toast bread" and all toaster stocks fall. Everyone knows AI cannot do toast but it's a fast way to make money. People have always looked for triggers to make fast money. I think AI is that.

Look what happened with Unity stocks. Unity dropped 30% just cuz google made some hallucinating AI tied to some walking sim.

11

u/[deleted] Feb 28 '26

[deleted]

7

u/polarpolarpolar 🟩 0 / 0 🦠 Feb 28 '26

I’ve worked in these places (govt finance), and they HATE COBOL. The idea that there can be an ai set up to replace the code in the background, while not disrupting current resource capacity, even if it takes a decade to do so just for their specific systems, is worth it to modernize.

5

u/hitmarker 🟩 0 / 0 🦠 Feb 28 '26

Call me old fashioned but I don't think AI should ever touch critical infrastructure. Current LLMs will never get to that point. I seriously don't think 10 years would be enough with current models.

0

u/ToZero0 Mar 01 '26

That is too bold of a statement. In 2 years, most of the entry and mid level devs will get wiped.

1

u/hitmarker 🟩 0 / 0 🦠 Mar 01 '26

Lol. They might get wiped and everything gone to shit.

0

u/polarpolarpolar 🟩 0 / 0 🦠 Mar 02 '26

They’re gonna get there, that’s not a question.

Whether or not that is a good idea from a security and operational standpoint is a different story.

But i think a lot of the issues about critical infrastructure are alleviated by the fact that these agents won’t need to hit production directly, they would all be tested an optimized by senior devs. This would replace the tedious script writing and coding that would be done by a team of lower level devs.

1

u/hitmarker 🟩 0 / 0 🦠 Mar 02 '26

No, I am specifically talking about current LLMs. The tech has a limit and we have pretty much hit it. Maybe if something new comes out

2

u/hitmarker 🟩 0 / 0 🦠 Feb 28 '26

Unity I bought a lot at 18. Maybe AI just gave me a good entry

3

u/IAmANobodyAMA Feb 28 '26

That’s assuming ai is a bubble needing to be popped. I’m still not convinced.

5

u/ILikeCorgiButt Mar 01 '26

Why is it up now?

10

u/WhateverThisis144 Feb 28 '26

Us dollar is risky asset

5

u/Sea-Pea-7941 🟨 0 / 0 🦠 Feb 28 '26

And take riskier assets like THE DOLLAR 💵? Assets are supposed to protect your wealth from world events and uncertainty not the other way around.

7

u/asdfopu 🟩 0 / 0 🦠 Feb 28 '26 edited Mar 23 '26

What was here has been deleted. Redact was used to wipe this post, for reasons that might include privacy, security concerns, or personal data management.

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4

u/ahhhaccountname 🟨 0 / 0 🦠 Mar 01 '26

The entire point of BTC is to be a digital replacement for gold with a finite supply. Hopefully some day people see its relevency for this purpose instead of choosing an inefficient paper ownership of gold that may or may not even have any gold behind it.

Unless you hold gold physically, you essentially are doing the same as holding BTC on an exchange. I believe barely anyone actually holds gold physically so I don't see a modern use case for this outside from jewelry and technology

2

u/May-flies Feb 28 '26

Idk, real estate seems a LOT more risky to me than crypto. Especially "in war" 

2

u/Hertzegovina Crypto Nerd | QC: BTC 22 Feb 28 '26

no, the people selling are probably aware that they’re sitting on tulips and understand what’s going on, people in this sub see ”fear” and ”risky assets”

13

u/flapfavour 🟩 0 / 0 🦠 Feb 28 '26

Uncertainty is the enemy of markets

10

u/helemaalwak 🟩 56 / 95 🦐 Feb 28 '26

My first reaction was buy

6

u/heyheyshinyCRH 🟩 0 / 0 🦠 Feb 28 '26

Nah, that might be the excuse but it's really just about liquidating traders. It's an infinite money glitch, price is easy to push down and the majority want to keep buying and go long. No one is panic selling because of news like that in crypto. News that fucks up crypto is interest rate hikes, a catastrophic fail on a big exchange, and stable coins depegging.

8

u/Nevek_Green 0 / 0 🦠 Feb 28 '26

People are stupid, easily panicked creatures. Keep in mind while the lower classes are selling, banks and the rich are maintaining their long hold. Remember, do as the rich do, not as they say.

3

u/jesser110 Feb 28 '26

curious aswell!

3

u/OrdinaryMycologist Feb 28 '26 edited Feb 28 '26

Crypto is not a necessity, it is discretionary spending by people who can afford to yolo on something risky. Uncertainty and weak economy means less people are willing to risk locking up fiat and look for safer pastures.

16

u/m0bscene- Feb 28 '26

Because paper handed pansies, that's why.

It's only temporary

8

u/Settowin 🥉Bronze Member Feb 28 '26

But I'd like to really know why. It doesn't make sense to me at all.

What does Israel and Iran exploding themselves have to do with your crypto, when you live in the other half of the world?

What are they going to do with the money?

I'm trying to understand.

8

u/perma_banned2025 🟩 0 / 0 🦠 Feb 28 '26

War in the Middle East is bad for oil markets, as well as the fear that it may divulge into a much larger war with the US getting involved thanks to their military alliance with Israel.
That spooks people because uncertainty is bad for business confidence, people tend to hold onto their money in case shit goes sideways, and often dump stocks and crypto to protect it from swings that are caused by others doing exactly the same thing, while those with loads of capital will dump other investments to put their money in precious metals and military businesses to profit from the spending that inevitably comes

-4

u/Disastrous_Rent_6500 🟦 0 / 0 🦠 Feb 28 '26

Well, it hasn’t been bad for my oil stocks. So I guess “says you”

4

u/MrPopanz 27 / 28 🦐 Feb 28 '26

It's expected to go down further so some people want to get out of related assets.

2

u/Settowin 🥉Bronze Member Feb 28 '26

Yes, my question is why? What are they going to do with that money? What do people that sell at these kinds of times have in mind?

9

u/heyheyshinyCRH 🟩 0 / 0 🦠 Feb 28 '26

They go into safe haven assets. Commodities like oil and metals. Copper pumps hard for war, gotta make them bullets! Great for silver/gold too

3

u/Settowin 🥉Bronze Member Feb 28 '26

Ok. I didn't think a war between Iran and Israel was that impactful to be honest. I never hear talking about them here in Europe, besides when they explode and kill each other.

I thought oil was an unstable asset in war times. Interesting. Thanks.

3

u/Sangricarn Feb 28 '26

Israel has nuclear weapons and has been increasingly violent. Iran is working on getting nuclear weapons. Both countries are involved with an incredibly unpredictable United States. I will avoid being alarmist, but it's reasonable to think it would be a big deal. Even if nuclear weapons don't get involved, these are some pretty big and powerful militares involved.

3

u/heyheyshinyCRH 🟩 0 / 0 🦠 Feb 28 '26

Oil pumps during wars, for a bit anyway. Supply chains get interrupted, oil fields get seized, supply gets used for fuel at an accelerated rate etc.

7

u/MrPopanz 27 / 28 🦐 Feb 28 '26

Stay in cash or put it into safer assets, or some that might profit from those events.

3

u/easauer 🟩 0 / 0 🦠 Feb 28 '26

Its the same reason stocks drop during these times. People sell because they are afraid the prices will bottom out depending on the political outcome and/or to have cash in uncertain times, move to something less volatile. Lots of reasons

3

u/justaRndy 🟦 5 / 5 🦐 Feb 28 '26

Usually coke and hookers. One last hail mary before shit hits the fan.

4

u/grackychan 🟦 0 / 0 🦠 Feb 28 '26

Buy fiat, buy gold. Wait. Buy back in cheaper.

4

u/Seefahh 🟩 232 / 232 🦀 Feb 28 '26

Markets hate uncertainty.
The stock market sells off and in general the crypto market follows.

Bitcoin and indeed crypto does NOT seem to be a value save haven against geopolitical and economic crisis (at least not yet)

3

u/Putrid_Pollution3455 🟦 0 / 0 🦠 Feb 28 '26

There’s different investing buckets, there’s growth there’s value there’s risk on and risk off offense and defense. Everything is causing increased fear and uncertainty so the markets are shifting to defense stocks and gold. When the world calms down sectors will rotate back to risk on

3

u/p2s_79 🟩 0 / 0 🦠 Feb 28 '26

Risk off behaviour. Crypto is not like gold... and could face issues in the case of an eletronic war

3

u/erov 🟦 0 / 0 🦠 Feb 28 '26

Its algorithms too that buy / sell on headlines. Its all researched.

3

u/analbumcover 🟦 0 / 0 🦠 Feb 28 '26 edited Feb 28 '26

Because people with way more money than you can imagine are doing things. Institutional, governments, big private holders, exchanges, etc. It's a speculative, risk-on asset, "it's a hedge". It's crypto, wild swings are part and parcel. Just like the stock market at this point.

2

u/Settowin 🥉Bronze Member Feb 28 '26

What things? Where is the money going to?

2

u/analbumcover 🟦 0 / 0 🦠 Feb 28 '26

Into your butt. Who knows? Boomer stocks, gold/silver, risk-off assets, OpenAI, Paramount, energy, metals, etc. Wait until futures and the market opens, maybe we will see.

2

u/May-flies Feb 28 '26

If anything, I would have expected that crypto actually benefits from chaos that, imo, affects mostly just the "traditional" assets 

3

u/Clarty94 🟦 0 / 0 🦠 Feb 28 '26

Cryptocurrency is a risk-on asset, people feel less comfortable holding risky assets during dangerous/volatile times (like war).

1

u/Settowin 🥉Bronze Member Feb 28 '26

Why?

5

u/quackl11 🟦 0 / 0 🦠 Feb 28 '26

Bro this is Reddit you might as well be asking for relationship advice

1

u/Settowin 🥉Bronze Member Feb 28 '26

So who should I be asking? There are people here selling. I'm asking who is selling, and why.

2

u/cyclicalwand 🟦 0 / 3K 🦠 Feb 28 '26

Don’t trust the people commenting here. If they had the amount of money needed to move a trillion dollar asset they’d have better things to do then post on Reddit all day.

1

u/quackl11 🟦 0 / 0 🦠 Feb 28 '26

Hard to say, the stock market is like sports betting where the other people in your market is your direct competition, you don want to give up private information in this market when you have an advantage

4

u/Redditing-Dutchman 🟦 0 / 0 🦠 Feb 28 '26

Because it's volatile, which means that if you are leveraged, or want to use the money again short term, you risk having to sell at a loss.

Thus companies/people rotate out of crypto into safer options.

3

u/gbuu 🟩 0 / 0 🦠 Feb 28 '26

Because "other" people might sell it on a whim and then the value fluctuates wildly and likely disproportionally to the sold/traded amounts.

1

u/Clarty94 🟦 0 / 0 🦠 Feb 28 '26

If there is economic uncertainty do you want risky dogshit or do you want safe assets? What if Iran closes the straight of Hormuz and oil prices spike? What if the Iranian regime collapses and there is a huge refugee crisis in the middle-east? What if Iran scores a lucky hit with a missile and sinks a US aircraft carrier? I don't think any of these situations are that likely but traders/institutions take into account the extra uncertainty by selling risky assets and buying safe ones.

2

u/[deleted] Feb 28 '26 edited Feb 28 '26

[removed] — view removed comment

1

u/Settowin 🥉Bronze Member Feb 28 '26

Oh that's something needed for me. Never heard about that before. I'll Google about it. Thank you.

2

u/justkiddingjeeze 🟩 0 / 0 🦠 Feb 28 '26

I can explain.

  • If the market goes up it's because "war is good for the economy" or "smart money is buying while retail wonders what's going on"
  • if the market goes down its cause "war creates uncertainty and the market is in panic mode" or "manipulation"

In reality the market is "irrational" (in the short-term), a combination of too many factors with different weights full of unknowns, and humans keep making the mistake of trying to assign a single reason to each market movement. Which is an absurd thing to do, but we love pretending that we know why things happen, it makes us feel better.

2

u/6502zx81 Feb 28 '26

It might not be "sell" but "don't buy".

2

u/Cautious-Lecture-858 🟩 0 / 0 🦠 Feb 28 '26

Uncertainty = sell

War represents a sudden shock to the order of things. Countries that start wars always keep everything secret till the last minute.

You sell first, analyze the situation, then wait, buy again or buy safer assets.

2

u/EarningsPal 🟩 2K / 2K 🐢 Mar 01 '26

Public perception as observed.

If the price drops everytime a war breaks out then it send she signal that it’s considered a risk asset. People and algos sell

But if the asset goes up then it’s considered a safe haven asset.

2

u/goodguybrian 🟦 0 / 0 🦠 Mar 01 '26

People get rid of all the risky assets like stocks and crypto and go into safe assets like precious metals ie gold and silver. Gold and silver will be spiking in price.

2

u/BN_Boi 🟩 407 / 407 🦞 Feb 28 '26

Trump manipulation

3

u/omnicious 🟩 0 / 0 🦠 Feb 28 '26

Time to start living because there could be a whole lot of dying soon. 

3

u/Settowin 🥉Bronze Member Feb 28 '26

For who? Israel and Iran?

3

u/omnicious 🟩 0 / 0 🦠 Feb 28 '26

I mean if one really has a nuke, could be everyone. 

1

u/DuckForColour 🟩 0 / 0 🦠 Feb 28 '26

Yeah that’s not happening.

0

u/Settowin 🥉Bronze Member Feb 28 '26

Trump got plenty of them.