Mooners and Shakers: Crypto at ‘extreme fear’ COVID-crash levels; Fed hikes rates by 75 basis points
Mooners and Shakers is sponsored by Dacxi, the world’s first purpose-built Crypto Wealth platform.
Can’t sleep, can’t eat, can’t stop checking your dwindling crypto portfolio? Then maybe you’re new around here (not to mention highly overexposed). The “extreme fear” the markets feeling right now is nothing new for this space. Granted, this does feel like an even deeper, darker, more concerning hole than the COVID crypto crash of March 2020 — which was the last time the Crypto Fear & Greed Index’s dial was this low.
And that might mainly be because we know that downturn morphed into the most stupendous of bull runs, borne from America’s now-busted 24/7 money printer.
Sky-high inflation, Eastern European war (lest we forget), looming global recession, crypto-company layoffs (Coinbase, Crypto.com and BlockFi are saying goodbye to hundreds of staff) and over-leveraged VCs and lending platforms… it’s all one big unappetising, bubbling soupy mush. What slop will be added to the dish next?
Article update: Well, now we can tell you. A few hours ago, the US Federal Reserve, aka da Fed, announced a 75 basis points interest-rate hike at its latest FOMC (Federal Open Market Committee) meeting. It’s the largest rate hike in the US since 1994.
It’s a bit early to say for sure, but it seems the “priced in” narrative might actually be playing out this time. The crypto market’s actually bounced a little on the news — guess it’s a fan of clarity. Probably nothing to get excited about, although let’s see how the dust settles on it tomorrow.
The DCA opportunity (minus professional financial advice)
At the risk of sounding like a broken record, the main silver lining we’re still seeing to the crypto-market downturn is the most obvious one — the possible opportunity afforded by dollar-cost averaging back in “when there’s blood on the streets”.
That is, the potential long-term upside for incremental deployment of set-aside capital into a market at its lowest levels in about 18 months.