The Big Picture - Market Talk

The markets are bleeding red at the moment and except for some of the OGs, most people are looking at some pretty scary numbers on their portfolios. We have had some pretty big events rock the crypto market.

First the collapse of Luna and the UST stable coin. The death spiral took a life of its own. Some say it was badly managed others more an attack by institutions on a private stable coin. Whatever the story was, Luna is no more.

We now have Celsius freezing up on us and panic on the centralised platforms and a scramble for crypto preservation instead of yield. Most pundits are lowering their expected Bitcoin price with each leg down.

We can see from the Ethereum chart above that a similar pattern is happening with each leg down. There is some convergence with fiat and bitcoin and then a leg down before the alts usually go down further. Will we see this again before the next leg down?

If we take a wider look at what is happening, we can see also the stock markets are getting very beaten up, especially after the interest rate hike by the Fed and further raises were made in the UK and Switzerland.

The S&P500 is currently down 23,55% YTD and the carnage doesn't look finished there yet. The chart from Google above shows we have been in a bear market for at least 6 months, however, we didn't know it at the time.

After the increase of authoritarianism in the last 2 years, we have been through some large geopolitical disasters such as the corona pandemic and now the war in the east. These events are ushering in rapid changes that we haven't seen since the start of the dot com boom.

The current trends seem to show more disruptions to world supply chains, massive government interference in our affairs both monetary and freedoms plus more societal structural changes such as to our money.

There is a massive amount of centralisation in the world with 1 or 2 large corporations managing to control many of the top industries. Through this, it has been possible to cause massive price inflation and start a spiral of rapidly increasing prices.

With this in mind, holding bitcoin and other cryptos outside of their manipulation is a no-brainer. With the massive reduction in price, it is a great time to think about accumulation. These opportunities only come along once in a lifetime.

The last time this happened was when those who bought real estate before 2001 cashed in fortunes undreamed of.

If you already have enough assets or are living from your assets, now is the time to reduce your spending and hold on as long as you can for the rebound. Selling into this market makes no sense.

Thanks for reading.

Disclaimer: This is not investment advice, this is Infotainment. Please do your own research.

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