The Economy is at the edge of the cliff
End of 2022, a heavy crash is ongoing and a lot of bankruptcy will happen during 2023. The Federal Reserve rate hike happening 8 times a year are making hard time to the whole economy. Especially high risks assets like bitcoin and cryptocurrencies, underneath this downswing there's the COVID19 crisis and the war knocking at the door of Europe, making inflation going ballistic.
It's taking time, but slowly we are getting closer to it, closer and closer to recession than ever before. On top of that we had LUNA fall bringing 3AC and Celsuis collapse which blew up a thousand billion dollars from the overall crypto market capitalization, and now FTX bank run with all manipulations they did getting into light.
Also the Grayscale Bitcoin Trust being sued by some of their biggest customers because of it's opacity, the lack of trust into there instrument is clear as we can see the GBTC traded at minus 48%. Furthermore all the big bitcoin mining companies are facing squeezes as they relied on enormous amount of debt because they took loans at bitcoin's all time high, their ration debt-to-equity skyrocketed and many of those crypto mining stocks have lost more than 80% of their value, they went from self-funded to debt-funded corporation within a year just to growth faster as possible. We touched the sun during 2021 bullrun and now we've got our wings and feathers burned like the legendary Icarus.
3ACs super size Yacht and 100 millions golden villas in the Bahamas owned by FTX members didn't last long. All of those disappeared within a snap of the fingers, like magic! These sorcerer's apprentices went from nothing to billionaires to nothing within few months. We can say that they are the dirt in the pile of diamonds. What a messy waste done by kids playing in the mud.
We know now why financial work can't be done without any regulations, it attracts too many scammers and people who think they are inventing a new economy... Economy is very sensible, you can't reset the whole field under the pretext of decentralization and new technology and omit 400 years of fine tuning the economic system by adding rules and guard rails since all this time. Imagine the crazy increase of suicide, mental health problems and depressions because of these last crypto companies collapses. Don't touch at peoples money if you are not sure to be able to keep their life saving safe.
Those kids did the same mistake Johan Palmstruch, owner of one of the first central bank did. In 1668, Johan's bank began lending more than it could afford and so he started printing too many banknotes without the necessary collateral, leading to the central bank's collapse. He was sentenced to death penalty.
You can try all the technical analysis you want, head and shoulders, double top, morning star, inverted hammer, dojis, none of it will work because fundamental roots are taking back everything to the ground. Anyway technical analysis is nonsense, most institutional investors and real Wall Street or City professionals know that technical trading is absolutely bullshit. They hire hundreds of PhDs in Science not to do technical analysis all day long but to do fundamental analysis and deep research, analyzing enormous loads of data to try to find exploit about the product they want to invest in.
All Technical analyzer that you can see sharing their thoughts on Trading view or youtube are a bunch of sheep, bacteria, microbes at the surface of the poop. Look at the Renaissance Medallion Fund, they did an average yearly return of 35% since 1989, one of the top-notch most consistent successful hedge fund in the industry, those guys are dealing with insanely large amounts of institutional money coming from corporate and state pension funds or high net work individuals, etc.... they won't bet on a chart because they see a falling wedge or a bullish divergence on a chart, come on wake up sheeople. You are ants for them and they are playing with your minds by shitting directly in your brain and washing it because they know how to influence the masses.
Anyway I will continue this writing next time, but be ready for the next rate hike from the FED, I will drop the dates below, because there will be a lot of volatility on those days and in my opinion this should definitely continue to push the downtrend of the worldwide economy, the great purge is ongoing, the party is unfortunately finish and if you don't be careful you might end up working hard until the end of your life to reimburse the infinite increasing debt. Good luck pal.
Next FED rate hike:
- December 14th 2022
- February 1st 2023
- March 22nd 2023