Sumary of Speculating in cryptos is yesterday’s trade:
- Cryptos are now dangerously close to surrendering all their gains achieved earlier in 2021. The question many are asking now is when is it safe to re-enter the market, with several analysts suggesting the mid to low $20 000s.
- “This is a question that is always asked whenever there is a bear market in bitcoin, but it is relatively safe to assume the downside from here is limited, and we should start to see price strength, perhaps towards the end of the year,” says Jon Ovadia, CEO of crypto broker Ovex.
- All new technologies exhibit extreme volatility as this chart from Stansberry Research demonstrates.
- com The current 54% slump in bitcoin’s price does not alter the fact that bitcoin has “entered a fundamental boom” according to Stansberry Research, and the volatility being exhibited along the way is similar to what occurred in technology stocks in the early 2000s, and in renewable energy stocks in the later 2000s.
- “One fundamental change that has happened in cryptos since the speculative boom of 2017 is that there is a real business case, and real earnings, behind cryptocurrencies like Ethereum, Cardano, Polkadot and others.
- Interest rates like these are disrupting the traditional finance space, with more than $50 billion locked up in DeFi applications that allow users to lend, borrow and earn interest by ‘staking’ cryptocurrencies (putting them to work in return for rewards) such as Ethereum and bitcoin.