Ever since the spectacular bull run that the crypto market experienced back in 2021, crypto has taken a steep nose dive with prices plummeting across the board. With the onset of Covid-19 and the panic that ensued, governments across the world flooded the economy with stimulus money which was the fuel that ignited the greatest bull run in risk on assets which included crypto.
The consequence of this tsunami of money that flooded the global economy was the dreaded monster called inflation that reared its ugly head. Central banks quickly reacted with their only defense against inflation which was to raise interest rates and in essence reverse the flow of money into the system. It remains to be seen how effective this strategy is as it seems inflation has become sticky, resilient in its effort to remain high.
Fast forward to today and crypto is like a boxer on the ropes as it seems the blows just keep coming trying to knock it out, once and for all. Crypto has proved remarkably tough, even withstanding the brutal attack that the United States government and the SEC has launched on it with unabated ferocity. The collapse of exchanges like FTX, Voyager and a few others does bring merit to the actions that the SEC have taken, yet it seems they are a little confused as to what they actually want as far as regulations go going forward.
The SEC is certainly dragging its feet towards forming fair and sensible regulations which the crypto industry is in dire need of, might be a long time till the masterminds over there figure it out. One bright shining ray of light though is the recent application by BlackRock to create the first Bitcoin ETF. BlackRock is an immensely powerful asset management firm that has enormous clout when it comes to getting its way. Just the fact that BlackRock is pushing a Bitcoin ETF forward in this incredibly hostile crypto environment shows that the smart money believes in its future.
No one can predict the future but wise investors should follow where the smart money is going and seeing BlackRock make this move could be a precursor to a major positive shift in the crypto industry. This isn't financial advice but it sure looks extremely positive for crypto going forward. Pay attention because things could start getting interesting very soon, especially if this Bitcoin ETF is approved. BlackRock has a more or less 90% success rate with getting ETF's listed.
Buy when there is blood on the streets, that is where crypto is currently at. Be sensible, be smart, but don't look back to regret opportunities that were staring you in the face. Don't forget the golden rule of investing, only risk what you're willing to lose.
Good luck out there everyone.
