The collapse of FTX shook the market badly, not to mention the alts, BTC lost more than 25% in a panic. Of course, the smart guys worked out the movement after the momentum, but not about them now. I look at the situation in the long term, I’m interested in the future, at least in the near future. The market reminds me something of a pandemic, where weak organisms are being weeded out and the ecosystem is being cleaned (one of the conspiracy theories).
We haven’t gotten to the “bitcoin is a bubble, your crypto is deflated” stage yet – no, but we are standing close to it. The picture resembles an accumulation process, as if something just as sad as it is right now is being prepared.
The best position in a market like this is an observer. The market is sideways, giving forecasts is the same as pointing a finger in the sky. The movement in the areas does not give any guarantees of the trend, understand it. The market is a big game, where the lion’s share of what you see is just a wrapper, or someone else’s wishful thinking. The liquidity that everyone is talking about is not there and will not be there, at least not in this volume.
I’ve said it a thousand times and I’ll say it again – the financial sector is under a lot of pressure right now, many significant structures such as real estate, banks, stocks, commodities are not coming in the best condition. The crypto industry, though gaining tremendous momentum, is to this day unrecognized by society. The amount of money that swirls around here is negligible compared to other related fields.
Everything in this world is interconnected, look at the last 2 years – the pandemic, remember how much money was printed in the US? I’ll remind you – 5.9 trillion dollars, not bad, right? The smart guys have already started catching on to the connection, realizing how much that is. If we look at the data, we realize that it’s 38% of the world’s money supply.
And you know what happens when there is more money than we need? – A crisis. But just announcing a crisis to the whole world would be pretty stupid, we have to look for a solution. These pieces of paper have to find some kind of use, somewhere to fuse them. And then, out of nowhere, war breaks out.
Since time immemorial, war has been considered the best remedy for a crisis, such is the world. If you interpret this on a graph, it looks like a big red candle, with lots of blood and death. But like everywhere else, a strong dump is followed by an impulse, a reaction, systematically drawing an uptrend.
The percentage of inflation begins to fall, banks lend, and more and more jobs appear in the cities. Reports are turning positive, all the unnecessary bills have gone to help those affected, and many countries are finding new common ground and now have friendly and long-term relationships. The financial sector is rehabilitating and a bunch of destinations are starting to grow following it.
Understanding how money works – you see the situation from both sides at the same time. You begin to sense where people are afraid and where they are willing to buy. Right now, crypto is, to put it mildly, not the best tool to operate with in the first place. Setting up a crypto company and team sounds much better than trading assets. Such a market shows the real ones, not those who want to seem like them.