What Just Happened? 11th May 2022
Red Bags, Everywhere
Ouch! Is anyone else feeling the pain of ALL the markets right now? Looking for spare change among the couch cushions? I know I am certainly deflated after a week unlike any I’ve seen before. Bitcoin has completed six red weekly candles in a row for the first time since 2014. Interest rates are rising along with the US dollar and the US CPI figures come out mid-week, and the S&P 500, Nasdaq, and Dow are down 17%, 27%, and 13%, respectively, from their recent peaks in January 2022. How much more pain is to come? Some analysts and experts (even Aunt Cathie) are reassuring us that the bounce is coming soon, but how much longer can we all last when $1,000,000,000 in long and short positions were liquidated within 24 hours? Cray cray!
And will the eventual CBDCs of the world cause regulatory problems for the DeFiers? The Bank of International Settlements has released new research showing 73 out of 81 central banks around the globe are working toward rolling out their own CBDCs. Two major banks in Argentina were also about to allow customers to trade crypto with them until the Central Bank of Argentina jumped in to stop them, stating in a round about kinda way that it would be in contradiction with the IMF’s discouragement around the use of cryptocurrencies. Yawn.
Bits and Pieces
Something to celebrate amid some seriously bearish activity is the small milestones for BTC and the hope for the future price action of the King of Cryptos. Check out the charts below - especially the one on price action before and after each halving.
“On Thursday, the 105,000th bitcoin block was mined since the last halving, marking the halfway point to the next halving in April 2024. Halvings occur every 210,00 blocks and determine the Bitcoin issuance rate, which is currently at 6.25 new BTC every ~10 minutes. The issuance rate and the supply shock that goes along with halvings has historically had a considerable impact on the price. Around the same time, the hash rate also hit 249.1 exahashes per second (EH/s), a new all-time high. Consistent hash rate increases seen in the past year has shown that Bitcoin's security, has never been stronger as miners work to secure the network.”
- The Independent Reserve
Bitcoin mean hash rate (7d Moving Average) | Source: Glassnode
cointelegraph.com
As shown above (excitedly), Bitcoin’s price has increased by a factor of 100 since the 2012 halving to reach the previous halving price. What do you think the prices will be for the 2024 Halving?
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To the Mooooon? Again? Here’s Hoping…
Okay LUNAtics, I know today is a painful day after what you’ve all no doubt witnessed. I felt it too. Being staked means I was unable to unbond and sell my LUNA, but that’s also a blessing, because I just couldn’t do anything about it so had to let it go and surrender to the process. And, for a fraction of the amount it cost me to accumulate that original stack, I was able to buy in at under $5/LUNA. I do still believe in the project and where they’re headed, I simply feel gutted for the world of TerraLUNA fans that suffered at the hands of a literal market attacker. Read more about the epic crash and the recovery plan as shared by Terra’s CEO Do Kwon.
LUNA crashed to $0.69, more than 99% down from its all-time high of $119 after Terra’s UST stablecoin lost its peg to the dollar.
If you’re into FUD and drama, this is an interesting thread on the theory behind the supposed attack on LUNA and UST. Anything’s possible…especially if the likes of BlackRock are involved….(if you’ve not heard about BlackRock’s influence over the entire world, or their AI bot named Aladdin, you’re in for a shock!)
Who Said What?
@100trillionUSD (aka PlanB)
“Time for some hopium. We have been in 30k-60k range for 1.5yrs now. But the first time we were at 30k (Dec 2020) BTC was overbought (weekly RSI ~90). Second time at 30k (Jul 2021) BTC market was neutral (RSI ~50). Now at 30k BTC is oversold like peak covid fear Mar 2020 (RSI 34).”
Michael Saylor
“The #bitcoin price is set by those with more money and less knowledge than you. In time, they will get the knowledge and you will get the money.”
Teeka Tiwari
“So remember, this volatility is an opportunity. I want you to view it as an opportunity. I do not want you to view it as something that is stabbing you in the heart and trying to rip apart your long-term retirement portfolio. It's not, it's trying to help your long-term retirement portfolio.”