We saw a major crash among many things and overall, we can say that this is the biggest wealth transfer in history that we're going through right now.
Not that long ago we've seen news like ' Global Stock market slump may not be over' . 11 trillion dollars were wipeout. 7 trillion dollars were wipeout from the stock market this year, the worst losing streak for global stocks since 2008. As for the crypto market, we had more than 3 trillion of total cryptocurrency capitalization. In November 2021 and now unfortunately, it dropped to 1.3 trillion. These kind of fluctuations might make even an experienced investor sweat, not to mention those who had just started.
Well what to do in this situation?
Many people earned alot thanks to Crypto investing in the last 5 years, and during this year only, almost half them had their portfolio shrink by 40 or even 50% . 2022 has been the worst year for financial markets so far. Apart from the political instability , we've seen a change in money supply. The US printed trillions of dollars over a couple of years and now we're facing huge levels of inflation. They are the worst since the 80s and 90s.
Another thing worth noting is a quickened pace of crypto market itself. In the beginning, an average lifespan of trend was 5 months, then 2 months, and later 2 weeks. We experienced Dapp play to earn boom, Defi market , NFT craze ,Dog meme coins, Metaverse. All these trends and hype oversaturated the market. So now there is much needed reset. This reset is a market crash driven not only by the external forces but also by whales through their market manipulations. It's because of them that most people not only lose but also give away big chunks of it to the global financial companies.
Just think about it, when the market starts to crash, every media outlet repeats the same thing , which drives the prices down. In the meantime, big whales begin to invest. Once they're done , the narrative changes. Currently we're on the the edge of a financial revolution. The more unstable the situation becomes, the closer we get to the biggest wealth transfer. 5-7 years ago , anyone on Wall Street who understood anything in finance would say that Crypto is rather a low quality dark area of the market.
In 2020, most financial advisors began to include Crypto in their portfolios. If you're a hedge fund person who helps people multiply their money , you might notice that they no longer require your services as much because they can do Crypto investments themselves. So what to do ? You diversify your portfolio and put 3 or 5% in your Crypto. Some financial structures have up to 80% of their assets converted in Crypto.
However, while it sounds promising on paper, actually earning on Crypto isn't so easy . But opportunities always exist. In this this current situation, this might just be the one. To earn money and multiply it, you need to stay focused and proactive. Don't concentrate on the pumping markets. Find a good starting point. A great starting point in my opinion was when we were in the dip with Bitcoin at 29 000. You might ask how to know that it's a dip and I would tell you that I'm not 100% sure but if the market can stay there for another moment , we might see a recovery from this support level. That's where you have an opportunity to start investing. Whether you are an investor or trader, looking for these possibilities requires a lot of effort and concentration.
