2022 may not have started the way you expected it would, with bitcoin and the overall market dropping to a level not seen since September 2021.
Are you stressed? Excited? Happy? Sad?
Keep in mind, the amount of bitcoin on exchanges is at its lowest in years. As a result, proportionately fewer buyers and sellers determine the price now than in recent history. It doesn’t take much to move the price in either direction, even if the market’s bigger than it’s been in previous years.
Recently, that direction’s been down. Leveraged longs keep getting wiped out while institutions, whales, and people who bought during the summer cash out some or all of their investment.
Until this stops OR more money comes in, we’re just going to have to let the market work itself out. Premium subscribers know what I’m doing now.
And altcoins?
Until somebody shows me any evidence to the contrary, I will continue to believe they follow bitcoin up or down. Some may go in a different direction now and then, but generally this market goes wherever bitcoin goes.
If you have time, please read or listen to my monthly issues from June through November 2021. Those issues lay out my general sentiment and mindset about this market.
In my next subscriber update, I’ll share some interesting behavior from whales and talk about this week’s coming death cross, a specific trading signal. Bitcoin’s price chart has printed eight death crosses in its history. Four of those times, its price went down for months after. Four of those times, its price went up for months after.
Yes, 50/50 analysis, but it’s nice to know which lines are crossing on a price chart, especially when those lines will almost certainly cross before my next rundown.
Scroll down for some articles and videos you may enjoy.
What you missed in December
Market Updates
Weekly Rundowns
Moving Beyond The Right-Click Save NFT Culture
Bottom Line: NFTs are the only way to instantly, globally verify ownership of anything and the rights and privileges that conveys. Saving a copy of an NFT does you no good, it’s useless.
My take: works of art gain value from their rarity, authenticity, and association with a particular artist or community. Proving those elements can turn a $10 doodle into a million-dollar masterpiece. You can copy the image, but you will never capture its value.
Why we care: as a concept, NFTs will revolutionize the way people monetize the web and license creative works (including music, inventions, and public performances). Imagine your NFT gave you a share of royalties for an artist’s subsequent works? Invite-only membership to VIP clubs and exclusive events? A line of credit or cut of the revenue from merchandise and promotions related to collections and business ventures built around your NFT?
‘Blockchain Rock’: Gibraltar moves to become world’s first cryptocurrency hub
Bottom Line: a blockchain company plans to buy Gibraltar’s stock exchange. Europe is très not happy.
My take: some say Gibraltar is a magnet for money launderers, oligarchs, and tax cheats, but I’m not sure they have enough investment banks and real estate companies to compete with the EU, China, and USA on that measure. In any event, some governments worry the arrangement will open the floodgates for dirty money and tax evasion. They should probably worry more about Gibraltar attracting massive amounts of capital and talent from its embrace of 21st century finance.
Why we care: crypto can’t catch a break but it’s one more reminder of how far this industry needs to go before it can reach the mainstream. From a regulatory standpoint, the struggle is real and it certainly keeps crypto from succeeding. That said, as Gibraltar and other countries show they can function and prosper with this technology, hearts and minds will change.
Last, some gallows humor.
I’m not a big fan of dollar-cost averaging or trying to time the market, but I found this video funny and thought you might, too, though I apologize if you find it offensive, that is not my intent.
Relax and enjoy the ride!
Weekly Rundown - January 9, 2022