Market Overview - Crypto Enthusiasts, Looking Like Geniuses Again?
Whipsaw
Crypto enthusiasts definitely have one thing going for them, and that’s conviction. Regardless of the MSM narrative, which flips so aggressively, they remain unchanged in their support of Bitcoin and other Cryptocurrencies. This obviously results in a very predictable response from society, as a whole.
When the market is collapsing, Crypto investors are said to be foolish and overzealous. However, when the banking sector begins to collapse, and Bitcoin climbs 36% in a week… they are absolute geniuses. This is the type of fickle nonsense you learn to ignore as a Crypto investor.
It’s simply all noise, especially when you understand certain aspects of the financial world that much of society is oblivious to. You don’t allow their negativity to sink into your heart. Simultaneously, you don’t allow the positivity or praise to go to your head. You simply carry on doing what you always do… stack sats!
This is perhaps what the average person is unable to understand. They still see Bitcoin as something that is either trendy or yesterday’s news. They simply cannot understand that it’s not a pair of jeans. How it is viewed is inconsequential to its inherent value, and its value and benefits are what make it so attractive. Who cares if so and so is into Bitcoin?
Furthermore, the disapproval of certain individuals and entities is equally as insignificant. The inherent benefits and design of Cryptocurrency are what make it valuable and attractive. This is why Crypto is sought out by some and not others. For many, it’s simply a fad that comes and goes. As a result, such individuals “buy” the euphoria and “sell” the correction.
No wonder they think the way they do. They are applying the rules of fashion and trends to a market that operates in reverse to the abovementioned dynamic. This is why I have never been a trend follower. It puts you at the backend of everything. You either set trends or ignore them. That’s how I view it. In the case of Bitcoin, it’s definitely the approach to have.
Too Many Variables
Currently, there are a number of scenarios helping to push Bitcoin higher. The most obvious is, the banking crisis. There may be moments of alleviation. However, I believe there is still a lot more carnage on the way. This is obviously making a solid case for Bitcoin. Simultaneously, we are also experiencing dollar weakness. If the dollar devalues, then you are going to require more dollars in order to purchase assets denominated and valued in dollars, such as Bitcoin.
There is also much anticipation in regard to what the FED will do in relation to interest rates. Many believe that a pause or even a pivot is on the way due to the fact that banks are literally collapsing. This is however all still speculation. We have to wait and see what transpires, prior to getting ahead of ourselves. I know it’s an unpopular view, but a final heavy correction is still quite possible.
As mentioned in a recent article, will this be at $30K or even as high as $40K? The FEDs decision may in fact be the decider that the market is waiting on. Until Powell’s announcement, I expect Bitcoin to hold, and quite possibly push higher. It’s important to note that this pump is still retail-driven, and as a result, is a lot more fragile than it appears.
Final Thoughts
The “timeline” has now become of even greater significance. For instance, good news from the FED, compounded by a further banking calamity will literally ignite rocket fuel for Bitcoin. However, flip that outcome and the story could change. For example, the FED becomes even more aggressive and there is a period of alleviation within the banking sector.
It is also important to note that while we have experienced a level of decoupling from traditional markets, the stock market is still in a very vulnerable position in regard to trend support. The markets have been somewhat difficult to read of late, and so in many ways, I am adopting a “reactionary trading” approach. In short, I am “cautiously bullish” in the immediate short term. Anyway, we wait and see how the week unfolds… see you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
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