Today we had the long-expected interest rates by the FED. Though the interest rate is kept stable, the crypto ecosystem does not show any sign of positive sentiment. The majority of investors are deeply concerned about the current state of the crypto ecosystem. There was positive news coming from the application of the SEC to freeze Binance US funds but it was rejected. Also, today's interest rate announcement was supposed to turn the market green.
The question that comes to mind is that if crypto does not react to these updates, how can the ecosystem be green while we are suffering from several external factors? Crypto is here to stay and there is no possibility of the death of this relatively young ecosystem and the market. Yet, it does not mean that we will have "strong" investors that will keep this technology-based ecosystem up as it is the new NASDAQ!
We may need to face some forgotten realities of crypto that will always create pressure:
Crypto Up x DXY Down Mentality
Crypto, if we need to shape into a source of tech-based & financial freedom, we may really need to revise our plans. While the FED is controlling the markets with interest rates or hawkish statements, no one should be seen as a "threat" to the authority. If there is, the weapons will always point to this infant market.
Have a look at the case in the market. We were expecting huge pumps only 3 weeks ago. Yet, a single move by the SEC destroyed the sentiment and we are looking for another local dip once again.
Crypto is a combination of GOLD's financial independence and NASDAQ's futuristic promises. We are in the midst of freedom embracing AI in a market! Plus, we can enrich the ecosystem with lovely little gambles via meme coins.
Getting along with the authority figures by not spoiling their plans may lead to better collaboration with policymakers.
We Need FTX, Luna sentiment, and Others "Partially" BACK
Yes, it may sound silly but the Phoneix of bankrupted crypto service providers will be a catalyst for the recovering crypto market. There are some rumors that BlockFi and FTX will start their operations, enabling customer withdrawals in the first position, and the recovery process will heal both sides.
Liquidity is draining. We may not realize it but the SEC's recent move and delisting fury, which was led by Robinhood and Binance, will end up with limited liquidity, more depression, sell-off trends, and more extended consolidation.
If the support levels cannot resist, unfortunately, worse days will be ahead of us!
When the crowds leave the market, the long-term investors start to sell their tokens to each other. It becomes a vicious circle that does not move the markets even a food step. While we still have a possibility to bring people back, the market should hint at a brighter future.
Risk Appetite is Dead
Interest rates are looking good all around the world. While there is a way to make more money (in numbers, not purchasing power), it may not be easy to convince people to invest in risky markets. At that point, the crypto ecosystem is seen as the latest stop for many people who are prone to stay on the safe side while there is an opportunity to make gains with no risks.
"Mild" Recession is on the corner. The global concerns are too strong to show their negative sides on this infant ecosystem. Do we have another choice rather than waiting for our turn? In my honest opinion, we do not.
The scope and intentions of the regulations are open to discussion. However, it is obvious that when the markets are regulated, their scope of potential investors enlarges accordingly.
There are lots of things to be considered to expect a bull run in our market. Unfortunately, all of them are hard to fix in a short time. My humble expectation is green crypto starting as of October and November and a bit more swings during the Summer season.
As I always mention, Dollar Cost Averaging in a consolidation market has been my best strategy that yielded positive returns. I'll keep doing the same thing on strong projects by decreasing my personal risk appetite (more funds on BTC, and ETH in time).
What do you think we need to have a green crypto? Share with us below.
