Current Crypto State - Hard Pills To Swallow

The current situation is truly not easy to anyone right now. People are starting losing their jobs, interest rates are climbing to record highs and the economy is on the verge of a recession. Truly not what you would call a party. Well this party is even getting worse with some hard pills to swallow that I want to discuss. Furthermore, we will take a macro look on the complete situation and last but not least get some hopium! With that being said, let’s jump into the article!

Hard Pills To Swallow

So over the past few weeks, the crypto industry certainly had some hard pills to swallow. The break down of Terra Luna started it all. We saw some big crypto institutions failing such as 3 Arrow Capital as well as Celsius defaulting on their debt. It is being speculated that a lot of other centralized exchanges will soon be closing down withdrawals form their websites and will it make impossible to buy any more new crypto on these exchanges. With this being said, stay safe out there and always remember: Not Your Keys, Not Your Crypto!

Another hard pill to swallow is the downturn of a potential spot Bitcoin ETF from Grayscale by the SEC. Well, it was kind of obvious that it gets rejected as there was not much hope in the crypto community. It is very weird to me why the US is so hesitant towards this ETF because there is already one in Canada up and running. Nevertheless, Grayscale announced that they want to sue against the SEC in this case and I think this is great news. Finally, somebody who stands against the constant crypto bullying of the SEC and finally somebody who will take their fate into their own hands! It will probably take a while until the Spot Bitcoin ETF will be finally released, but when it will, it most certainly will shoot the price of BTC extremely up, so better buy as long as its cheap!

Economy Goes Downwards

Looking at the macro view of the markets we see that there is not much hope there as well, at least for the moment. The FED is looking to raise the interest rates even higher with the upcoming FED meeting. This will most certainly drive the stock market down another bit, putting us closer to the expected 30% loss from the high. The supply chain issues are slowly resolving but the important stuff for the tech industry such as chips are still massively undersupplied! Inflation is getting battled but we are no where near the optimal 2% and then there is war.

I think the war right now is the biggest driver of oil, metal and wheat prices right now. Many experts are saying Russia is trying to use hunger as a weapon and that this war could take for ages. The oil and gas market is just insane and this situation truly does not help the average population. I think that right now there are certainly other things to think about than the next bull run, but exactly this mentality is indicating that we must be very close to the bottom!

Positives

Like I said, the overall mindset seems to be shifting away from the asset markets more towards politics, war and inflation. Many people are losing interest in the stock and crypto market and the major consensus towards crypto is starting to fade away again. There is less talk about the next Doge Coin or what NFTs to get. That is how we know that we are slowly closing to the bottom.

Another positive fact is that the good crypto projects are still developing! Projects such as Cardano, Cosmos or Splinterlands are constantly developing their products and trying to improve their project! Cardano for instance are soon merging their test net to test their new scalability method. Cosmos is working on interchain security and Splinterlands is bringing new updates almost every month! Yes their coins are tanking right now but I have no doubt that projects like these will survive this bear market and will climb much higher during the next bull run!

Conclusion

No matter which asset class you are investing right now, I think it is very wise not to lose track of what is happening. All of us are having less money to invest, I think that is the normal cycle of life for normal mortal people. But this does not mean that we can not look out for great opportunities. If we will play it right, the reward will be glorious and will give us plenty of opportunities during the next bull run. I am personally trying to stay humble and just Dollar Cost Average into the projects that I believe in. I am not expecting getting rich over night as this is not how investing works but I really hope that the patience and consistency will pay off in the future!

Published by ga38jem on LeoFinance On 4th July 2022