As things stand now, the crypto market is in a total lull with slight rebounds. I decided to write an article about the labor market and slave owners (employers). More than sure, many of you have encountered such a situation in the workplace. Whether it’s a large company or a small one, where there is contempt for employees or outright brutal treatment. Unfortunately, this kind of behavior is more typical for the CIS countries. Where the ideology rules: I’m the boss, you’re an idiot.
If the market continues such a characteristic surge in the coming months. Then I dare say a bunch of "smart" and not-so-smart influencers will emerge and explain how they were right because they predicted this growth. Arguing that they always believed in the growth, forgetting that they were sitting with full pants of manure on antidepressants.
I see regular negative reactions to my take on the market and the situation. I get your frustration and the mental state you're in. But that doesn’t change the fact that in any losing trade, if it’s not bringing in at least some profit, you need to cut your losses. Continuing to mindlessly invest and trying to recover losses is a one-way street. Yes, the situation is completely stuck, funds are lost, and expectations are unmet. But the question is: Is pouring in new capital to recover losses a way out of this situation?
The other day I stumbled upon a segment about the economy of the future, discussing how we have about 3-5 years until a shift happens in the current system. It focused more on the real estate market. So, if AI really ends up replacing many jobs, then who’s going to be consuming goods, renting or buying properties, and using services? Logically, the demand for everyday needs and services should drop by 40%.
A few words about the market situation. I get it, a lot of people are really fed up with what's happening in the market right now. I also understand that there was faith in the technology and its development. The money invested in projects is more about believing in the future. In the end, we've faced manipulation and scams. Even the President of the United States is manipulating the market, so what honest market can we even talk about?
Intentional destruction of the market through time capitulation.
Lately, while observing the market, I see one consistent factor: They’re squeezing the market down to its lowest points. And they're keeping it in that state with no movement for as long as possible. This leads me to believe that such actions are intentional. Against a backdrop of total apathy and fatigue from the market swings. People simply hate any movement in the market. I dare say that 99% of market participants still in positions just want to get their money back, delete all exchanges from their phones, and walk away from this dumpster fire forever. I admit, I feel the same way, 95% of the time. But those 5% still make me think about pushing forward, in case I can break even on my portfolio.
Victory over inflation through hyperinflation. Is this a thing?
Kevin Warsh has taken the helm of the Federal Reserve, and he's a crypto-savvy dude. He's invested his funds in projects like Compound, dydx, and a bunch of other ventures. But that's not the point; the head of the Fed has a taste for risk and quick gains, plus he's a Trump appointee. An interesting combo, right? Yeah, I get it, everyone's fed up with that orange swan. But let's dig deeper into the situation.
In all my time as a trader, I've noticed one constant fact: people love screenshots of green charts, big profit percentages, even if it’s just fairy tales.
I have a question for you, folks: have you really degraded your brains to the point where you're willing to buy into fairy tales about daily earnings on futures, from so-called authors, supposedly women, with naked assets here, and so on?
It’s frustrating because I try hard, writing articles about the market, reflecting on the situation in the world. I aim to deliver valuable info and point out where you should be looking. But no, that kind of info isn’t wanted. The crowd acts like fools, they just want fairy tales about green charts and constant profits on futures.
From the bottom of my heart, I consider such people idiots who deserve to lose their capital because they lack the brains.
Clarity Act and the debates over stablecoin yields. What's the connection?
As many have noticed, there were debates in the Senate regarding the yield from stablecoins. Bankers flat-out refused to accept terms with fixed or floating interest rates. However, they left some incentive tools on the table: Staking, rewards for trading, and all sorts of activity bonuses. You could say this is the first step towards unlocking greater opportunities for passive income. A solid move, and in the future, they might even disguise the annual percentage yield as a loyalty program.
Well, the Clarity Act has passed its first reading. So there are no more laws to be passed for the crypto market.
If this is the final and main legislation that will structure the market for institutional investors, then it's quite possible they could storm in, kicking the door wide open.
Honestly, given everything we've gone through over the years in this market, it's hard to believe in a reversal and a proper bull run.
The US stock market has added nearly $11 trillion in market cap over 45 days.
• The S&P 500 and Nasdaq indices keep hitting new highs.
• Bitcoin > $81,000.
▫️▫️▫️▫️▫️▫️▫️▫️▫️▫️▫️
Now let's circle back to the Genius Act. If the stock market is moving such massive capital in just a month, what happens when digital dollar printing kicks in? What kind of capital flow could be bouncing around, possibly spilling into the crypto market?
Of course, these are just musings and thoughts. But still, just for comparison.
Yesterday, they nominated Warsh for the Fed chair position. Funny how this doesn't mean anything. Lately, everyone's been laser-focused on the Fed and its moves regarding interest rates, inflation, and all that jazz. I think the expectations around this guy are massively exaggerated, or they’re just using him as a distraction, nothing more.
Arthur Hayes: In my view, the sharp rise in yields on 10-year US Treasuries will force Trump to strike a deal with China, otherwise, the TradFi market will start losing its wheels. I use dips like this to make my buys.