Over the last few days, the entire crypto market has suffered one of the biggest shocks it’s faced in years. Bitcoin is down 57% year-to-date. Coinbase is discussing bankruptcy. And in the biggest headline, the stablecoin UST was attacked, dropping the value down into the depths. I’ll walk you through what the news means and what to make of it.
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So the big question everybody is going to ask right now: “is this the end of crypto? How worried should we be?”
Let’s step back and talk about what happened.
Crypto was already pulling back significantly this year, but things took a massive leap forward this week when the algorithmic stablecoin UST was attacked.
Evidence right now seems to be pointing to a coordinated strike from Citadel or Blackrock. But it doesn’t really matter.
The end result was that UST, which was intentionally and critically pegged to the value of the US Dollar, lost its peg and dropped as low as ~$0.30 cents. As I write this, it is back down to about $0.68, after climbing as high as $0.82.
UST’s sister coin, luna, which is meant to be sort of a “shock absorber” for UST when price fluctuates, also cratered.
To amplify peoples’ concerns, Coinbase reported pathetically bad earnings, and the stock tanked.
Moreover, they discussed the possibility of bankruptcy, and they threatened that users might be viewed as “unsecured creditors,” which would put their assets at risk.
So, all in all, it’s a lot of bad news for cryptocurrency.
But how much worse is it going to get?
I think we’re near the bottom, truth be told. Right now, we are hitting crypto targets left and right to the downside.
That should mean that the bleeding is pretty much done.
Look at this chart for Bitcoin. The green circle is a downside target, there are more below, but I think we are getting to levels where a significant turnaround could be coming soon:
I am still bullish on crypto for the long term right now.
I just don’t understand why everyone is fine with the market tanking and confident that it will bounce back, but when crypto loses value at the same time, everyone says it’s the end.
I have always said you should spread out your exposure so no one thing hurts very much.
Hopefully, you listened and you’re not too damaged by the last week, crypto or otherwise.
Either way, here’s a freebie for you: RVN (raven coin) stands to benefit from ETH moving off traditional mining and going proof of stake.
RVN hit my downside target, and I just added ~3100 coins (with money I can stand to lose).
Not saying you should go all in, or get any at all for that matter. Everyone needs to make their own decision. But maybe it’s proof that I’ve got my money where my mouth is, and I’m not running scared from crypto.
Jeffry Turnmire and InvestPub do not provide investment advice. Trading involves a substantial risk of loss and is not suitable for all investors. Many traders fail and you should not trade with money you cannot afford to lose. If you need personal financial advice, consult a financial advisor.
Daily Profit Publishing and Jeffry Turnmire do not provide investment advice. Trading involves a substantial risk of loss and is not suitable for all investors. Many traders fail and you should not trade with money you cannot afford to lose. If you need personal financial advice, consult a financial advisor.
We are not licensed to provide you personalized investment advice. Nothing in these communications should be construed as personal investment or financial advice.
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