1. The massive red candle that stared back at crypto investors last week could either be the last kick in the teeth of a departing bear market, or the start of a longer downturn. Let’s consider the options:
2. It’s clear that the crypto market won’t rally as long as the poor macroeconomic environment continues
3. We have China still trying to maintain its zero-COVID policy by locking down its most important economic zones, massive shortages in fuel and wheat due to the war in Ukraine, and gangs of ill-informed bureaucrats looking to drown the crypto industry in red tape
4. However, we can see that Bitcoin is still holding important support lines. And this could be a window of opportunity to DCA into quality assets at rock-bottom prices
5. According to @RaoulGMI things might be starting to turn already. The U.S. government bonds are up about 2% YTD and are trending towards 4%, which signals that the rate hikes are starting to work
6. The Fed can’t afford to send the economy into the kind of freefall that an interest rate of above 2% would cause. So they will have to stop raising rates sooner or later, which means that crypto will rally again; it’s just a question of when
7. Yes it's winter in crypto land. I'm from the UK, I know how much winter sucks. But its necessary and normal. The good times will be here again! Now, let's all join hands and sing kumbaya... no? OK just me then.
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