Why Crypto Keeps Dropping
Added 2022-01-07 02:29:46 +0000 UTCThe crypto markets have taken a tumble with Bitcoin making a violent move down to the $42,600 range.
But it wasn’t just the crypto market that has found itself in choppy waters.
Nasdaq and other stock indexes have continued to plummet for a third day as well due to the tapering of bond purchases.
This comes to no surprise to those who were paying attention in December when the Federal Reserve began plans to slow down new bond purchases. This leads old bonds to eventually expire, eventually lowering their overall balance sheet.
Last month, more than half of the 18 members of the FOMC said that the Fed should hike rates three times in 2022.
To put into simple terms, this impacts investments as many investors are selling investments in order to pay off their debts.
The head of investing strategy at SoFi Liz Young told NBC News there are lot of new investors in markets who have never seen a rate hike cycle.
However, she believes that this won’t have a detrimental effect on the stock market indexes and that the scared off investors will come back in time.
Bitcoin, Ethereum, and other cryptocurrencies are usually the first types of assets to be sold when markets go under.
Oftentimes in crypto, FUD will create a kind of cascading effect on the market. The market falls, leverage long positions getting wiped out, the market falls further, and the cycle continues before finally hitting a bottom.
$900 million in contracts were liquidated in just 24 hours across all derivatives markets in crypto, so we know this is happening.
This is the tricky part about leverage trading.
While some profit off of it, amplifying returns when things are good… but too often this tested by inexperienced novices who can’t control their greed or advanced traders who forget what it’s like to be liquidated causing them to take riskier and riskier positions.
This goes to show it’s important never to put on the table what you cannot afford to lose.
Then we have volatility, which is amplified right now, because trading volume on exchanges has been low in the past while.
Low volume on exchanges equals volatile price swings to either the downside or up. In this case, we went down.
One final factor that came to my attention today is what’s been going on in Kazakhstan.
There’s been a lot of social unrest due to surging fuel prices and government corruption.
As a result, the government in Khazakstan has forced an Internet Blackout. A blackout that has continued for two days now.
And luck will have it… Kazakhstan is a leading country in the world, only second to the U.S., in Bitcoin hashrate production.
The internet blackout has caused Bitcoin’s overall hashrate to be reduced by 14%.
To me it seems we may have a rough few days ahead. Personally, any buys I make will be on the smaller side in case we see markets drop further.
Is this the end for crypto? No, just a hurdle.
Comments
I like ETH
2022-01-11 17:14:31 +0000 UTCNo I'm not sure.
2022-01-11 17:14:22 +0000 UTCThere are a lot of apps that can help with this. For example Tokenmetrics. But it's a lot of research and sometimes luck to find these.
2022-01-11 17:13:55 +0000 UTCHey, thanks! I'll take a look.
2022-01-11 17:11:59 +0000 UTCIt took a couple hours for me. I connected the apps. Waited a bit like his video states and youll see the chats and threads pop up on your discord app.
2022-01-11 16:55:57 +0000 UTCMax how do I do the discord. I’m hooked up to it through my app but I’m still not seeing anything.
2022-01-10 19:37:40 +0000 UTCScroll down a few posts down. There is a post called portfolio update on 23rd December where max has shared his portfolio
2022-01-10 18:37:01 +0000 UTCScroll down a few posts down. There is a post called portfolio update on 23rd december
2022-01-10 18:35:59 +0000 UTCHi Everyone ... same here, crypto newbie and as mentioned by Pradeep above, I would also like to access Max's portfolio ... thanks!
2022-01-10 15:22:55 +0000 UTCHello Everyone! I am new guy here, anybody knows where I can view the portfolio of Max.
2022-01-10 12:34:18 +0000 UTCSo i should invest i few 100 in ETH?
2022-01-09 16:13:35 +0000 UTCHey max i. Got One more before I forget does anyone know what the deal is with Jeff Brown. And what he’s promoting as far as the world IPO day. That’s supposed to be coming up soon I’m tired of seeing the infomercial Asking myself if he is a scam artist I know he’s talking Crypto an NFT’s
2022-01-09 03:15:13 +0000 UTCEvery time I look at my KuCoin app I see 23 and 40 percent Gains On coins I’ve never heard of how do I catch them before they go up ? Do you have a video explaining that ?……..
2022-01-09 03:03:52 +0000 UTCi hate how smp500 dumps and bitcoin crashes its discusting
2022-01-08 16:58:03 +0000 UTCHi Max! I've been following you for a while and just joined. I wanna suggest to you to look up Pulsex. It's a Richard Heart project. He's so far created HEX and PulseChain. I'm ALL IN. I figure, going long on crypto is a strategy, and one I'm doing, but making gains quickly requires getting in pre-launch in the right project. Take a look and if it goes to the moon, you're welcome! BTW, best to do this by Jan 9. 😉
Charity Dunning
2022-01-08 15:45:43 +0000 UTCYup
2022-01-08 01:09:41 +0000 UTCTrue
2022-01-08 01:08:04 +0000 UTCBoom!
2022-01-08 01:07:54 +0000 UTCHappy to have you here!
2022-01-08 01:07:47 +0000 UTCPossibly not for the immediate future.
2022-01-08 01:07:36 +0000 UTCThanks
2022-01-08 01:07:20 +0000 UTCReally hard to say.
2022-01-08 01:07:11 +0000 UTCSo many!
2022-01-08 01:07:02 +0000 UTCNot to mention how Europe is slowly crippled again by Omicron,... Less severely than previous waves, however government are trying to keep the economy open while promoting safety. Opposite sides of the same coin.
2022-01-08 00:47:18 +0000 UTCJust signed up and reading the first post it was worth the money 💪🏾
2022-01-07 23:48:48 +0000 UTCHi Max, thanks for that info! I am new here, joined yesterday ;)
2022-01-07 22:40:43 +0000 UTCHi Max whats your take on Fantom and other exchange tokens like kucoin and ftx token. do you see any sharp increases in these?
2022-01-07 21:57:05 +0000 UTCThis is called, "The patience game"
2022-01-07 21:18:17 +0000 UTCnobody knows and anyone making predictions is speculating
2022-01-07 20:56:36 +0000 UTCGood content!
2022-01-07 18:58:08 +0000 UTCThese are the times I wait for
2022-01-07 17:50:25 +0000 UTCWhen I see fear/emotion causing people to sell. Opportunity is knocking on my door
2022-01-07 12:55:43 +0000 UTCHey Guys, Do you have an idea of the time frame for this lull? Should it hold at least a couple of weeks more? What can we expect of this?
2022-01-07 08:47:30 +0000 UTCSo what coin is the opportunity right now on kucoin
2022-01-07 08:20:33 +0000 UTCThank you for this summary! Great help!
2022-01-07 08:18:58 +0000 UTCWaiting to strike! When is everyone else waiting for??
2022-01-07 05:10:03 +0000 UTCThanks Max
2022-01-07 04:43:22 +0000 UTCThanks Max!
2022-01-07 03:29:42 +0000 UTCGreat summary!
2022-01-07 03:19:37 +0000 UTCThank you, i ll keep my portfolio following this update
2022-01-07 03:01:34 +0000 UTCThanks a lot, Max :) I'm new to your Patreon and really excited to see you posting!
2022-01-07 02:55:10 +0000 UTCWill continue to look at this time as an opportunity for me.
2022-01-07 02:37:27 +0000 UTCThank you sir!
2022-01-07 02:36:15 +0000 UTC“This goes to show it’s important never to put on the table what you cannot afford to lose.” I tell people they should have this in their office or anywhere they can see it all day every day. Merch opportunity for sure.
2022-01-07 02:36:11 +0000 UTCGood content 👍
2022-01-07 02:35:53 +0000 UTCIf bitcoin was to drop more, how far down do you think it would go?
2022-01-07 02:34:46 +0000 UTCMy pleasure!
2022-01-07 02:33:29 +0000 UTCNo problem!
2022-01-07 02:33:22 +0000 UTCWell said and thanks for the details and research
Kevvv
2022-01-07 02:32:53 +0000 UTC
