There has not been much activity in this thread.
With crypto world there have been a few companies that are not operational as the price of Bitcoin & cryptos went down around two months ago. Those companies being Celsius Network & Voyager along with a few others.
Today (July 20) there is a bit of a price pump in Bitcoin and crypto along with this Tesla & Bitcoin news.
Thanks. Interesting article… SO the crypto frenzie is dead? Should we only focus on regular stocks and forex?
I pity the people who treat crypto like a fad. Treat crypto like a stock investment, it’s only idiots who are looking for a get rich quick scheme.
I would be leery of buying anything until the Fed pivots. Crypto - like almost all asset classes - is trading in concert with the overall market. Forget what the main stream media is saying - they’re lying or hiding reality. The Macro picture is very challenging. The housing market will be the first domino.
Disclaimer: I am not an economist or RIA. Just a guy who closely follows the markets.
Crypto frenzy is not around. Sinusoid put some good details.
Dollar index being high and interest rates rising hurts cryptos. (Negative correlation)
There is a high correlation between “easy money” and crypto. By “easy money”, I mean an accommodating Fed. We’ve had a nice run from 2009 - 2021, with the Fed printing money like mad.
Well now with inflation at 9%, the Fed is in a tightening mode with the rate hikes and the end of QE. Liquidity is king and investors are raising cash - lying in wait for the Fed to pivot. When it does, the dollar and interest rates will fall and money will flood back into the market.
There is that too. The “easy money” with crypto & stocks.
I believe there is a generational opportunity to make money. But it requires patience. There will be a window for everything: gold, crypto, and stocks.
But right now the Fed is in a bind. They must raise rates to combat inflation. At the same time, they know the economy is weakening and higher rates make it difficult to pay off the enormous government debt which came from reckless fiscal and monetary spending. At some point, they will have to reverse course.
So…we need to let the rate hikes play out. The Fed will pivot when something breaks, most likely unemployment or credit spreads. I see that happening in the next quarter or two.
If you don’t want to time the market, you can always dollar cost average your way back in.
In any case, I see an opportunity to make generational wealth.
I think most people don’t understand that currently most crypto that are not an exchange are not making any money, because they have no products to sell. Most of them sell you on some idea that they may never make a reality.
What you are trading is not the value of the coin or the technology, it’s what other people think of the coin. You are trading hype basically. Maybe in 5-10 years crypto coins will be about technology and innovation but right now they are about a quick money grab from the owners/developers. Especially if they are below top 100.
There’s been many cases where the owners start slowly selling their own coins and people that are holding them loose a lot of money. Same thing happened with luna. They found a transaction of millions to the owners personal wallet. And people still put money in the new luna token he made. So be careful in what you invest in. Focus on top 100 coins
FYI for everyone who had signed up for the Pi network way back then:
The Mainnet migration is about to happen. The thing is, we currently have just 7.5 days before it occurs, so people who mined Pi need to complete their KYC before then—otherwise, they will lose all their coins. Please complete it!
