Weekly Rundown - February 27, 2022
Where did all the volume go?
Bitcoin’s price remains below $40,000 on light volume while traders get liquidated on their short and long positions. Is anybody still buying or selling except the bots and speculators?
Meanwhile, the Ukraine/Russia war hangs over the world’s financial markets.
To say we live in uncertain times is an understatement.
In my monthly issue, I touched on the notion of uncertainty and what that means for you as somebody invested in the crypto market. Did you read it? If not, do it now.
Scroll down for a poll, two videos, one article, and a tweet.
Poll: Will bitcoin's price ever go below $33,000 again?
Watch this video for my thoughts about the Ukraine conflict and how it matters for crypto. It starts about one-minute into the video.
TL;DW—this is potentially the most consequential event since the creation of the modern financial system, with potential to set a new framework for finance in the 21st Century, possibly for a different reason than you think.
If You Scanned that QR Code During the Super Bowl, the FBI Has a Warning For You
Bottom line: bad people can manipulate QR codes to take your crypto (or worse).
My take: you probably realize this but just in case you didn’t, keep this in mind next time you scan a QR code. It may not take you where you think. You don’t want to give your info to Conbase when you meant to send it to Coinbase.
Why we care: when you do even the most trivial business in crypto, you have to look out for rug pulls, hacks, protocol failures, and scams. Don’t let a QR code trip you up, too.
Not often I cover a tweet but the Twitter algorithm put this one in my feed. It may seem a little dense—the comments are as interesting as the tweet itself.
Background: a lot of countries cut off Russia from half of its financial reserves. As a result, they made it very hard for Russia to prop up its currency and manage its monetary policy. News reports suggest Russia reached out to India and China for help getting around this.
How deeply does Russia go into crypto? If it goes deep, how will it conceal its transactions, which will be massive, obvious, and easy for enemies to trace? How does it enter and exit without spiking and crashing the prices?
Perhaps the West’s financial actions mark the first step before further trade restrictions. Cut off Russia from a large portion of its wealth, crush the ruble, destroy its financial system, and give time for the rest of the world to find alternative sources of oil, wheat, and other Russian commodities.
With what consequences?
As long-time subscribers know, I’m a fan of Alessio Rastani’s videos. He usually shares data or perspective nobody else does.
In this video, he looks at one measure of uncertainty, fear, and panic—a metric that spiked with the Russia/Ukraine conflict. Interesting to see what it shows.
BTW I do not believe in the notion of “don’t follow the herd.” We are all part of a herd. Sometimes we’re part of the bigger herd, sometimes we’re part of the smaller herd.
Relax and enjoy the ride!