The US markets caused a chain reaction, which experts are calling the first taste of reality for new investors
Yesterday/today depending on your time zone the US market "crashed" of course, to us cryptocurrency investors 5% is the daily volatility rate, so hardly a crash, but for the new to stockmarket investment, 5% can be seen as the world's end.
It is rather funny how one market can cause a chain reaction through multiple markets
The ripples (muhahahaa pun intended) of the market crash extended across all the markets I heard of today. Unrelated markets took the hit as if the US market's one day price somehow reflected the value of companies in the USA. This is an absurd idea. As far as I know, there isn't any other reason for the "crash" than the fact that the US market has been growing for no reason for a long time. So like all markets, they eventually correct.
The reason the crash happened is people or bots
The fact that this happened is either proof of how uneducated investors are about the reality of markets and the value behind them, or that the market is too populated by automatically selling bots. This idea about bots is actually interesting, I've known that these days automated bots are used in the stockmarket to automatically react based on things that have been assigned to their attention. However, if the use of them is already so widespread that they can cause panic, the law is bound to catch up to them. The good thing about governance is that things that affect negatively can be handled. Although I really don't care if bots choose the price of the market in the future.
The reasonable thing to do during a market crash is to act as you would if the market crash didn't happen
To me reasonable is to do nothing at this moment. If the prices keep dropping, then I luckily have some money left on my account so I can buy cheap stock. Which is really cool. The thing about the stockmarket is that it always goes up. Unless you're so pessimistic as to think that the economy will collapse. Either way, if it does, you'll have bigger problems than the price of your stocks. The economy needs to go up or then we will face a situation we've never faced before, which will cause something I can't even start to comprehend. So I won't even try.
This is not the end as everyone invested in crypto knows. 5% is nothing.
Come tomorrow, come another 5%. Who gives? As long as you made wise decisions, the price of the stock isn't what decides how the company does. The company keeps doing what it does even if the price per share is $0.01, if it goes to $0 then, eh I don't know, free money? Assuming of course the company didn't go bankrupt and that is the reason it went to 0.