Rinse and repeat.
Marking the flag off of FruitPulse, you’
Marking the first Edition of FruitPulse, we dive into the cryptocurrency markets to translate the pulse of th
In light of what can be perceived as a harsh wake up to reality for many a new investor, Bitcoin plummets 45% dragging down with it their hopes and dreams for this bull cycle. Is it really surprising though? To put it plainly, no.
The market had been overextended for quite a while now, with greed metrics sitting at extremely high levels. Leveraging entire life savings and college university fees into wildly speculative coins, retail investors are here in full flow. Volatility is the price you pay for getting your feet wet into an asset class that has been the best performing class for more than a decade now. This, combined with negative news from China and the rapidly changing outlook of Musk has meant that this has exceeded the usual standard correction by about 15% and may be considered as a flash crash.
What does this flash crash mean?
✔️ Long term trend : Mega Bullish
✔️ We are still very much in a strong bull market.
✔️ This correction just pushed targets higher for the cycle peak.
✔️ FEAR Index and RSI back to March 2020 levels
✔️ New people diving head first into the market on YouTube recommendations amd word of mouth need to be reminded that this is real money they are trading/ investing.
✔️ The uncertainty looming over miners in China would just mean that the big players would move to new locations and shift to greener, more viable forms for their source of energy.
✔️ A potential crackdown on miners would induce entropy in the short term, but the difficulty adjustment will eventually adapt, the profitability of smaller players will increase, the whole bitcoin network would be more decentralised than ever.
Closing thoughts:
The concerns raised in the recent past are valid- there is a lot of ground to be covered in terms of reducing Bitcoin’s carbon footprint. After surviving a civil war, the DAO attack, the Chinese crackdown of 2017, segwit, Mt Gox and several other potential obituaries:
At Fruit Capital, we strongly reiterate that Bitcoin is still bitcoin, zero fundamentals have changed, this flash crash was not something we wanted, but was definitely something we needed. Markets are back at healthy levels. Looking at current metrics, those that invest during the ongoing dip shall see their decision pay off in the months to come. If there ever was a time to tuck away the emotions and follow your strategy, it’s now. Don’t have one?
May the markets forever be in your favour.
-Fruit Capital,
Cryptocurrency Advisory service.
