The globalists told us there’d be a dark winter. It sounded ominous. Have they failed to deliver? Certainly, worries over what this meant extended to the crypto market… for some.
Reuters has an interesting piece that is fairly optimistic on the crypto market recovery. Might we venture to say it’s not optimistic enough, though? We’re always touting the importance of a long-term outlook. And if one maintains it, can we really say that something called a “Big Crypto Crash” occurred a little over a year ago?
After all, the lowest level Bitcoin sunk to was $15,000 or thereabouts. How can crypto have crashed for the ages if BTC’s support was near December 2017 highs? This is why traders and short-term speculators should be taken with a grain of salt. Though in fairness, they have been helping speed up the bear market rebound.
Nobody wants to go out on a limb and say the crypto market recovery has started. Who wants to go out on limbs in the crypto market? While we are very bullish on crypto, we are not tremendously bullish on crypto within a recessionary environment. It is, after all, an industry, and those don’t do so well when the punch bowl is taken away. So it’s actually pretty surprising that Bitcoin is bouncing back to $20,000 during interest rate cuts and company downsizes.
How will the crypto market’s bear phase affect the future of crypto investments? We’re inclined to say “no different than before”, but crypto came as a result of the last global recession. Therefore, we don’t exactly have much to go off on. But if we had to guess, we’d say no different than before. Still, crypto industry trends post bear market will be something to watch as the global recession unravels further.
Will the current bear market affect the future of cryptocurrency regulation? Probably not. Governments will do what they want, and crypto investors will only care to an extent. Did every U.S. citizen really part with their gold in 1933?
Latest news of Texas trying to pass a bill that will let the state own Bitcoin are less awesome than is being portrayed, really. Sure, it’s a major nod towards cryptocurrencies if not altogether a concession on behalf of the government. On the other hand, the most centralized entity available hoarding a decentralized currency? Not everyone will be too happy about that. We ought to buy our Bitcoin tokens before the governments do…
While plenty of experts hesitate to call the bear market done, we’re seeing some signals. The aforementioned increase in trading volume, new memecoins with 5,000,000,000% gains in a few minutes, Solana’s supposed recovery and so on.
As we have outlined quite a few times, crypto can only recover so far given the general economic conditions. Inflation is probably the biggest supporting factor right now, and it’s definitely a powerful one. We don’t doubt that fiat currency erosion is behind much of these gains, kind of shoving away what would generally be an unfavorable environment.
Nonetheless, it’s almost staggering that crypto is gaining now and already. What will happen when the Federal Reserve reverses course and starts with quantitative easing? Good times for crypto, not as much for fiat currencies.