Broad Crypto Market Update 11

The Summer of Relief

As all market participants have noted, we are in the midst of bull rally across all asset classes (with the exception of fuel). But thinking the market has suddenly turned from bear to bull in Crypto is far from what is happening. In past bear markets, BTC has risen over 200% before turning to revisit the same lows of the bear market. This measly 30-40% pump probably has some more upside left in it, but in retrospect this relief rally is minuscule. In news, the United States just fit the former criteria of a recession, two consecutive quarters of contracted GDP growth. However, this news coincided with some “not so bad” news of a 75 basis point hike, showing the Fed is sticking to their tightening schedule. While the feds goal is to curb inflation, this will cause risk investors to have less capital to invest in risk assets like Crypto. For price action, it’s looking like Bitcoin is making a run for the $28.5k-$30k area, which should put alts like XRP, ATOM, and ALGO squarely in the range of their previous leg before BTC’s last leg down. Things to look for in this market that can yield strong bullish return are use case, use case, and more use case. While there will be exceedingly few cryptos outperform BTC this bear market, tokens with strong use cases, especially in DeFi, may see some positive price action with real developments. However, we will likely see some larger projects go bust via bankruptcy and simply ceasing to maintain the protocol.

XRP has some great developments in the pipeline and with a potential resolution for the SEC case in 12-18 months, we could see XRP be the darling of this bear market. For the long run, AAVE should greatly benefit from the growing DeFi space and SGB/FLR should go up in sympathy with XRP due to the flare networks focus on the XRPL. Now is likely not a good time to go long, but a good time to continue to DCA and learn from the price action in the bear market. We will have another update out when new developments in this bear rally arise. Until then, be careful out there, it’s a rough market.