Crypto's Pullback

By Cje95 | Chronic Illness and Crypto | 28 Aug 2020


Within the last couple of days, it has been very clear the crypto is trying to find some support after a rapid and explosive growth period. This should not be too surprising to people as something cannot continue rapid expansion without falling apart like a house of cards. With my recent move into DAI, I have extra flexibility to possibly increase my stake in other coins. 

 

Now, this is all my personal beliefs and I could be wrong however several things have been developing to make me really look into converting some of my DAI. Using Coinbase for its simplicity I noticed that my Tezos did not get its regular three-day payout last week. Instead after seven days, I received a double payout which removed any concern I had. Most importantly though when further scrutinizing this today I realized that Tezos staking rewards had dramatically changed. 

 

Thinking the worst I anticipated it to again decrease as I have staked it since it had a 4.90% reward. This had fallen months ago to right around 4.00% which was unfortunate but was still a fantastic reward when you compared it to anything you could get from a bank. Much to my surprise though the reward yield has jumped all the way back up to 4.67% on Coinbase..... a significant move for sure. This has also correlated with how people are buying or selling it on Coinbase. For much of the last few weeks, it has been a majority sell at around 52-55% selling. Not the world's worst but not the best thing. Now it has jumped to 70% of the transactions are people buying it. Now looking at Tezos for face value it has decreased from ~$4.10 a coin to $3.20 at the time of me writing this. 

 

In my opinion, this is now a good time to convert my DAI to Tezos. While it may fall back even more at this point the pullback has been significant enough that it is worth dipping a toe back in. Since I had converted some Tezos to DAI when it was at $4.40 a can now buy back in and acquire a larger position than I previously had. 

 

For me personally it will be interesting to see how long Tezos's reward level stays at what it is and if the increase in buying could/will force it back down since I have not kept up with the developments on its blockchain since I have started at my new job. Looking at the chart the fall in price is becoming so severe that at a minimum I would expect a dead cat bounce (this is a stock market term that deals with a stock losing a huge amount of value for three days before the forth they will often go up due to being oversold). In the crypto world though it is a little more challenging to identify the bounces without reading over the chart in depth which again is something I just have not had time to do but looking at the crypto market and Tezos's price I cannot help but think that this has reached the point of overselling. 

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Cje95
Cje95

Graduated from Texas A&M in May of 2020 had dabbled in crypto since 2017 but dove in at the end of 2019. December of 2020 packed up and moved to D.C.! Huge sports fan, space nerd, and international newsreader! Follow me on Twitter @Cje95_


Chronic Illness and Crypto
Chronic Illness and Crypto

Cryptocurrency and Blockchain are going to be a huge part of the future and no matter who tries it isn't going to be stopped! Here I try to give my best insight and thoughts into the latest crypto news, features, developments. Further, I look to discover any link to news from the United States ranging from social-political issues to stock market and economic data.

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