Erik Weijers, 7 months ago
Besides the fact that all kinds of technical indicators are at similar values as during the troughs of the previous crypto bear markets, also news is comparably gloomy. This is typical for the sentiment at this stage of the cycle. We list three news events that illustrate this.
Sentiment is lackluster but behind the scenes, work is being done. Most teams are still in good shape financially and are just loving the bear market. The hype is over, and everyone can focus on what matters most: enabling a better financial system.
Investors who have been through multiple bear markets are also laconic and continue to buy. Hedge fund manager Dan Morehead, in an interview with Raoul Pal, isn't worried:
"I've been through about four of these cycles in the last ten years, and I was sweating in some of the previous ones. I was like, man, maybe blockchain doesn't work, maybe they'll outlaw Bitcoin, or maybe there's a flaw in the code and we're all screwed. There were so many worries in these past cycles. And I've experienced it firsthand, get in and it all goes down 80%. What I would say is this time, it is really, really a different vibe. There's hundreds of millions of people using it, 10% of all US-Mexico remittance is going over Bitcoin. It's a lot of people are really counting on, it's really a real system."
Mar 21, 2023
Will the American Central Bank on Thursday raise interest rates with another 0.25%? In a banking sector that's under severe stress, even higher interest rates could squeeze banks and even undermine trust in the entire financial system. At the same time, inflation hasn't come down to the target of 2%, which demands more interest rate hikes - at least in the opinion of the Fed.
Mar 15, 2023
ChatGPT is perhaps the hottest overall tech trend this year. Everybody is using it and everybody is discussing its limitations, bias, and capabilities. AI is not only changing how we are using our computers or the internet. It will also change how we work. ChatGPT is already able to design and program applications, websites, and even news articles. This is astonishing and promising at the same time. It looks like the hype has also reached crypto and once again AI related tokens were pumping on news.
Mar 14, 2023
After a tumultuous weekend, in which the American government had to prevent a bank run on regional banks, markets have had some time to digest the developments, including some new economic data. What to expect - and why the recent pump?
Mar 13, 2023
Binance launched a recovery fund for the crypto industry in November 2022 as an immediate response to the FTX crisis. The first round was meant to protect crypto businesses from the fallout and a second one followed to help out miners. Rebuilding the industry came at a cost since this wasn’t a bailout but an opportunity to borrow money from Binance. Now that the dust has settled another crisis needs to be dealt with. Only this time it is not about crypto intrinsic shocks, but banks that are being at risk.
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