December 13, 2021
Fed Week: Bracing For Impact
Yes, we all would like to see the crypto markets turn bullish again and continue their moon mission… But is it likely that crypto prizes will blast off today or tomorrow? Most likely not.
The fact is that all eyes are on the Fed this week and how the stock markets will react to its decisions… Will we see a fear-induced sell-off leading into the FOMC meeting on Wednesday (where we expect the announcement of accelerated tapering), or a nuke afterward? Hard to tell since it depends on how much of the Fed hawkishness is already “priced in” and how the markets will interpret the Fed’s words… However, with a high likelihood, we can expect nervousness and choppiness until at least the middle of this week!
It’s a big week for global asset markets: After years of seemingly unlimited money printing, which fueled a massive “everything bubble” and led to “up only” market sentiment, we are now in for a possible major policy shift that will alter the macro investment climate.
Since the investment climate for risk assets is more than uncertain in the short- and possibly mid-term, we advise you to have your risk management in check, which involves proper position sizing and a low-time preference.
Don’t forget: Crypto and Web 3 are the future, even if markets are shaky for a while. It’s all about managing risk and seizing opportunities when they arise!
What is a good example of how not to approach this market? Well, how about aping into meme coins like DOGE or SHIB when everyone and their friends are talking about them? As you can see in the chart below, DOGE is a picture-perfect example of how bearish distribution to “the herd” looks like…
Here is a message that, unfortunately, many people have and will not take seriously until it’s too late: If crypto gains have the potential to change your life, take them – even if only a portion!
If the recent market downturn made you doubt your involvement in crypto, here are some wise words from Santiago Santos:
And here is some more (not serious) advice for how you can protect yourself from inflation instead of investing…
If you need signs that crypto is fundamentally still moving along despite stalling prices, here are a couple of news items from today:
Even without hot crypto prices, Web 3 is still undoubtedly the future!