In recent weeks, The US Securities and Exchange Commission (#SEC), have come after #Binance , the world's leading #cryptocurrency #exchanges, accusing the company of operating an unregistered trading platform and violating securities laws. As a result, the value of #Bitcoin  and other cryptocurrencies dipped.

However, while some investors have been scrambling to defend Binance, some of the largest investment firms in the US have been quietly buying up Bitcoin at a discount. Grayscale, SkyBridge Capital, Rothschild Investment Corporation, and #BlackRock have been among the firms taking advantage of the dip in prices that followed the accusations against Binance.

Grayscale, owned by Digital Currency Group, manages over $30 billion in assets and has been aggressively buying up Bitcoin throughout 2021. SkyBridge Capital, with approximately $9.3 billion in assets under management, recently launched a Bitcoin fund, and Rothschild Investment Corporation, a multi-billion dollar investment firm, has also been increasing its Bitcoin holdings.

BlackRock, one of the largest asset management companies in the world with approximately $9 trillion in assets under management, has also been dipping its toes into the world of cryptocurrencies. According to #CNBC, the company has recently started investing in Bitcoin futures through two of its funds.

While it remains unclear whether these investment firms are working with the SEC, their actions highlight the power of institutional investors in the cryptocurrency market. Bitcoin, once seen as a fringe asset, is now being bought up by some of the largest and most influential investment firms in the world.

The trend of institutional adoption of cryptocurrencies is likely to continue as more and more investors begin to see the potential of cryptocurrencies as an asset class. However, concerns over volatility and regulation remain. Regardless, the involvement of companies like #Grayscale, #SkyBridge Capital, #Rothschild Investment Corporation, and BlackRock suggests that the cryptocurrency market is maturing and becoming more mainstream.

Market cycles 

Investing as a general concept is cyclical. We go through the ups and downs of trending markets. 

But what does that actually mean? 

Everything in this world is cyclical from seasons to harvests to birth cycles. It has a beginning, and over time, an end. 

Products and services all have life cycles depending on a variety of factors like technology or Economic changes. 

As we discussed before, risk is ultimately the highest at the start of any life cycle. The volatile nature of surviving infant markets is not easy. 

But how do we know when the bottoms and the tops of these cycles are? 

We ultimately don’t. There are too many unknown factors to which way the market will actually go and no one can predict short term events. 

But what we can do is start to understand tools such as basic Technical Analysis to pinpoint historically over time where markets have bottomed or topped. 

Ultimately all we are looking at with a chart, is the price of an asset measured in a particular currency. But price rises and falls over time, usually due to wider market fluctuations. All that is, is money flowing in and out of assets depending on what is happening in the world. These create the wave like patterns you see on charts. 

Over time we can see the Market tends to retest key levels, many times over at times. So whilst you think you have missed your opportunity, you never know what may happen in the future. 

The tops of cycles can be fuelled with expectation and hope. We can all see the hype when social media gets hold of something interesting, the key is to not let it get a hold of you. Doing so pulls you into the fear and greed trap. Once again objectivity rules when looking market semantics. 

Grasping basic cyclical movement and understanding trends can really help in adding skills to protect you. By learning to position within longer trends we can learn to have patience with the market.

Ben Todar: Understanding Market Cycles: Navigating the Ups and Downs of Investing

Investing can be a great way to grow your wealth and achieve your financial goals, but it's important to remember that all investments come with some level of risk. One of the most important principles of investing is to only invest what you can afford to lose.

Why is this principle so important? First and foremost, investing always carries some level of risk. No matter how carefully you research and analyze an investment opportunity, there is always the possibility that it could lose value or fail to perform as expected. If you invest money that you can't afford to lose, you run the risk of putting yourself in a precarious financial situation.

Another reason to only invest what you can afford to lose is that it allows you to stay focused on your long-term financial goals. If you invest money that you need for your day-to-day expenses or that you're counting on for a specific future goal, you may be tempted to make impulsive decisions or panic when the market fluctuates. By investing only money that you can afford to lose, you can stay focused on your long-term goals and avoid making decisions based on short-term fluctuations.

Finally, investing only what you can afford to lose allows you to enjoy the potential benefits of investing without putting your financial stability at risk. When you invest money that you don't need to pay your bills or cover your living expenses, you can potentially earn higher returns than you would with a traditional savings account or other low-risk investment. This can help you achieve your financial goals faster and with less stress.

In conclusion, investing can be a great way to grow your wealth and achieve your financial goals, but it's important to remember that all investments come with some level of risk. By investing only what you can afford to lose, you can stay focused on your long-term goals, avoid making impulsive decisions, and potentially enjoy higher returns without putting your financial stability at risk.