The Perfect Bad Storm - The Opportunity It Presents
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The Perfect Bad Storm - The Opportunity It Presents
I'm sure you have read your countless articles today about what a mess crypto is. Well take a look at the stock market as of late and you can see quickly it's not just the crypto markets.
Sure crypto is leading the charge of negative pressure something we haven't seen for years but it's also important to look back at history and understand this isn't the first time for either of these markets.
It wasn't all that long ago the stock market faced a 1/3 collapse in a face melting pace. Only to recover within 6 months and hit all new highs in 2020.
What happened during that time frame? A massive injection of wealth across the world that propped things up on a closed down economy. This is something that simply shouldn't have happened and it looks like now we are paying the price. This bleed it stocks will most likely continue down to what I feel the real support level is somewhere in the 30k range for the down. That means I expect another face melting day tomorrow and in reality it should go sub 30k before it starts to bounce on it's over sold nature.
So how does that line up to crypto?
It really doesn't, after the recovery of the stock market is when crypto started to hit it's rally. This delayed onset was most likely a result of people injecting their capital into crypto which fueled some rather heavy growth in what felt like promising projects that lets be honest many ended up turning bottoms up, cash grabs, junk NFT projects, meme city galore and so forth. It was a market propped up on nothing really rock solid besides a few things such as DeFi, Some NFTs, advancements in gaming and so on.
Where does this put the peg for me on crypto? 1.2 trillion to 1.5 trillion which we are now sitting in. However markets are going to shift all over the place now and those trash projects are about to flop while funds move into other more legitimate projects such as your bitcoin, Ethereum, hive etc. That wont happen over night however and it wont be a 1.2 trillion peg bounce. I see us over selling into the 1 trillion dollar range before we start to rally again and people/ investors are going to be very Leary for a while.
We have been here before, it's most likely going to last some time but what will come from it is a rock solid base line of which the economy including cryptos economy and launch pad from.
As far as I'm concerned though these meme type projects are going to be crush and stamped out and honestly I have to say good because it seriously felt like the cash grab, junk projects and under delivering of projects for a while now.
How long will it last?
Personally I feel it's going to be swift and harsh. Crypto is undergoing some of the most just mind blowing perfect storm of bad right now. A over bought economy that's correcting itself, stable coins in question after the sheer disaster of UST, Coinbase headlines scaring people even more and so on. It's going to be crushing for the next few days make no mistake about it. However I feel it's going to lead into a massive overselling and create some seriously long term opportunities. However that doesn't apply for all cryptos. I see many low class meme type coins being crushed and from that a more stable base of projects that have stood the test of time. Your Bitcoin, Ethereum, Hive, Leo's and so forth. I see this recovery happening by years end which might feel optimistic but I feel it's not. The economy is back, people don't really care to work but this is going to start forcing them back thus increasing a booming economy. However they are going to not trust the government and the stock market, hell even crypto and from that I do see them pushing into crypto over other options more so then before.
What are you thoughts? Will this plunge us into a longer winter that will last years or will it be a faster recover from what we have seen in the past?
*This article is for entertainment purposes only and is not financial advise. Do your own research before investing and understand the risks.
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I feel like, in addition to this recent LUNA case, the rise in interest rates; FED policies, and global concerns will postpone the bull run for the crypto ecosystem. Meanwhile, I'll be collecting cheap coins with amazing future 🦁
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It could last a while, I hope we don't see that however but I agree it's a great time to get in on those projects you believe in and Hodl.
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Even in bear season the markets move up and down, the key is to not get married to the number until the day you need to sell.
I do agree with you that this bear season is going to kill a lot of low value projects. Last I looked there were #19000ish cryptos listed on CoinMarketCap. They aren't all going to make it.
Hive will make it, it will send some people emotional, but those who can ride it out will do that much better for it.
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Mess? More like an opportunity. For those, who are already in, this is an opportunity to buy more at a good price. For others, this is an opportunity to enter into the cryptocurrency world at a good place.
See the current prices as discounts.
Of course if some bought Hive at the top, then this may indeed look like a mess. But it will go up again. This is a good opportunity to accumulate more. If they do not panic sell, then they may win, if they sell at the right time, when cryptocurrency go up again.
It still hurts lol a lot of people bought in that's filling others pockets right now. But I do agree it is a huge opportunity and something I hope more people realize.
I feel like we're going lower. I do, however, think that the recovery will happen within a month. What a rollercoaster.
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I agree I see us going lower tomorrow for sure until things start to get figured out. At some point it's for sure way over sold as people have to be panic selling right now.
Dead cat bounce incoming?
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The market is rebooting and giving. Those that come a little late into the markets an opportunity before serious take off. Like a proper sports man never goes down without a fight so will the crypto developers and they will emerge on the other side bigger and better
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Definitely a good time to look for some bargains but my guess is we got a possible $18,000 BTC in the near future.
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It's really brutal out there! Woke up to another downward movements and where ever this is leading to, it will surely hurt many. it's very tough and only the strong (people and projects) survives.
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From the conspiratorial point of view, we have been waiting for this collapse since last fall. I think it may get much worse but I guess it will be choppy so the traders and market makers can do their battles.
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Just the perfect storm of horrendous conditions in the macro and failed economic models in the micro.
I'm with you, it'll be swift, harsh and cleansing.
But in no way structurally damaging.
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Yay! 🤗
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Yeah, I agree. I'll keep saying it, we need a recession, bear market in stocks and bear market in crypto before we see the decoupling and crypto loses its high correlation with stocks.
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Bears are always bloody. Sending people to emotional lands but then, the market is the market and it will recover someday. Hold the ship strong because it isn't going to sink, it is just in the middle of a storm and so many project will not survive the storm
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These times are unforgiving to the markets and along with it are certain opportunities for those who know how to play the "game."
It seems it's dragging on. Hopefully this winter won't last long.
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It is really bad to see the market trend going down every day but with time everything will go back to it's normal place. Tough time don't last but tough people do.
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