Meanwhile, concerns were also mounting on Oct. 21 that leveraged traders have taken on more risk than they can chew.
(Bloomberg) -- Matthew McConaughey, the actor flirting with a run for Texas governor, said the state and rest of the country need “aggressively centric” governments to overcome partisan divides.Most Read from BloombergWhy Hong Kong Is Building Apartments the Size of Parking SpacesDo Prisons Deserve a Second Chance?COP26 Protests: Inflatable Cows, Megaphones and a RainbowThe 52-year-old native Texan, during a prerecorded segment of the virtual New York Times Dealbook conference Tuesday, said he w

Identifying the determinants of asset prices is one of the most important questions in finance. Traditional asset pricing theories are founded on the idea that equity prices should be determined by fundamentals such as earnings (Gordon 1959, Campbell and Shiller 1988). In contrast, the behavioral finance literature posits that prices do not always follow fundamentals due to investor sentiment trading (Shiller 1981, Baker and Wurgler 2006, Stambaugh et al. 2012). Eventually however, equity prices seem to trace their fundamentals (Pa´stor and Veronesi, 2003, 2006, Bartram and Grinblatt 2018).
All the signs, however, were there. Like previous bubbles, people were basing their belief in the cryptocurrency on their emotions, not any intrinsic value. Then there was the FOMO element, which only compounded things. Essentially, bitcoin became an international fever. Random companies were “pivoting to blockchain” for no apparent reason other than that it seemed like a way to create buzz. But when the bubble bursts, FOMO turns into fear of losing, which makes for an especially rapid plunge.